January 2012 Climate Change Summary Report

CRFA: Canadian study overstates impact of ethanol on corn prices
Canadian ethanol production is pushing up the prices of grains that are used in the country’s livestock industry, according to a study conducted by the George Morris Center and funded by livestock and meat groups. The study overstates the impact of ethanol production on grain prices, countered Tim Haig, interim president and chairman of the Canadian Renewable Fuels Association. “Does it have zero impact? That would be naive. But it’s minimal,” Haig said. Reuters (1/31)

“California Sets New Rules To Boost Zero-Emission Car Sales”

January 31, 2012: Forbes reports: “About 15 percent of the new cars sold in California by 2025 must run on electricity, hydrogen fuel or other alternative fuels that produce near zero or no emissions, according to new rules adopted unanimously by state regulators on Friday. The  new rules means one in seven new cars, or 1.4 million total, will use much cleaner sources of fuel by 2025. The new rules will require automakers to roll out passenger cars and trucks that will reduce  smog-producing pollutants such as nitrogen oxides by 75 percent less from the 2014 levels.”

Closed-loop biorefinery in Canada nears completion
The closed-loop Growing Power Hairy Hill ethanol plant in Canada is in its final stage of construction. Upon completion, the ethanol plant’s distillers grains will be used to feed animals at an adjoining feedlot, whose manure will be used to produce electricity for the biorefinery. Construction is expected to wrap up this fall, with commissioning due in September, said Evan Chrapko, co-CEO of Himark bioGas. EthanolProducer.com (1/30)

“Climate Change Debate Brewing in American Classrooms?

January 30, 2012: In a blog on the Wall Street Journal website, Sam Favate writes: “There’s a new battle brewing in America’s classrooms, and while it doesn’t have the religious implications of the evolution vs. creationism debate, it has prompted several state legislatures and local school boards to get involved. State boards of education in Texas and Louisiana have established standards to require the presentation of climate change denial as a valid scientific position, while legislators in Tennessee, Oklahoma, South Dakota and Kentucky have introduced bills to mandate equal time for climate change skeptics’ views in the classroom, according to OPB. Earlier this week, we told you about an Oklahoma bill that would cover teaching climate change in the same way it covers evolution — require that alternate theories be presented. While courts have held that some criticism of evolution in public schools is a violation of the separation of church and state, deniers of climate change argue that they are simply pushing academic freedom.”

 “Retreat From Natural Gas Grows as Price Shrinks”

January 30, 2012: San Antonio Express News reports: “A precipitous plunge in natural gas prices has turned the national shale gas rush into a retreat. Oil and gas companies released a stream of announcements last week of plans to close off natural gas wells, pull out gas rigs and curtail spending in gas fields from Texas to Pennsylvania. Oklahoma City-based Chesapeake Energy, the nation’s second-largest natural gas producer, launched the barrage with an announcement Monday that it would slash natural gas drilling in half over the next few months.”

 “Deepwater Gulf, Not Shale, Will Drive Long-Term Expansion of U.S. Crude Production”

January 30, 2012: Greenwire reports: “The deepwater Gulf of Mexico will likely be more important to long-term U.S. oil production than shale formations, the chief of the Department of Energy’s statistics branch said today. The views of Howard Gruenspecht, acting administrator of the U.S. Energy Information Administration, contrast with rosy projections of oil production from U.S. shale formations. Many analysts see the United States becoming the world’s largest crude producer within a few decades as new technologies open up oil fields. And the petroleum industry predicts that output from just two shale fields — the Bakken in North Dakota and the Eagle Ford in Texas — could boost domestic oil production by 30 percent or more.”

 “EU Countries Could Ground Airlines That Refuse to Comply With Emission Trading”

January 27, 2012: BNA reports: “International airlines using British and European airports could risk having their planes grounded if they do not comply with the European Union’s Emissions Trading System (ETS) by obtaining allowances for the greenhouse gas emissions they produce, according to a U.K. parliamentary report. Carriers from countries that have not taken measures equivalent to those under the ETS to reduce emissions also could be charged the highest rates of the Air Passenger Duty, a tax imposed by British airports, the Energy and Climate Change Select Committee said in its EU Emissions Trading System report, published Jan. 26. ‘Aviation is one of the fastest growing sources of climate-changing emissions, so the industry must accept responsibility and comply with the rules,’ Committee Chairman Tim Yeo said in a prepared statement.”

 “Waning Support for Wind and Solar”

January 27: 2012: The New York Times reports: “Assisted by technological innovation and years of subsidies, the cost of wind and solar power has fallen sharply — so much so that the two industries say that they can sometimes deliver cleaner electricity at prices competitive with power made from fossil fuels.  Their efforts received a boost on Thursday from President Obama, who called for a package of tax credits for renewable power as part of a broader energy plan that he outlined while on a campaign swing through Nevada and Colorado. But the lobbying by the wind and solar industries comes at a time when there is little enthusiasm for alternative-energy subsidies in Washington.”

“Oil Supply as a Strategic Risk”

January 26, 2012: New York Times reports: “Concerns about the climate have not inspired a lot of action lately on global energy policy. Now two professors are arguing that supply concerns and rising oil prices ought to be enough to get governments moving, even if the climate does not. In an opinion piece released on Wednesday by the journal Nature, James Murray of the University of Washington and David King of the University of Oxford point out that global oil production appeared to hit a cap of about 75 million barrels a day in 2005. Since then, they note, small supply bumps have caused big price gyrations, yet even when prices spike above $100 a barrel, supply appears incapable of rising to meet the demand.”

 “EIA: U.S. Using Less Foreign Oil, Carbon Emissions Flat-lining”

January 24, 2012: The Washington Post reports: “The U.S. Energy Information Administration just released its Annual Energy Outlook 2012 report, and three things stick out: The United States is dramatically curbing its oil imports, carbon emissions are flat-lining and we have less shale gas than once thought. According to EIA forecasts (which, do note, are far from perfect), Americans will likely continue restraining their gasoline consumption, thanks, in part, to the Obama administration’s new fuel-economy standards for cars and lights trucks. Meanwhile, oil and gas production in places such as North Dakota has been booming, thanks to higher prices and new drilling technology.”

Report: U.S. demand for imported oil to drop sharply by 2030
The U.S. will become almost self-sufficient in energy by 2030, as domestic oil and natural gas production trend upward, according to the BP Energy Outlook 2030. “The import share of oil demand and the volume of oil imports in the U.S. will fall below 1990s levels, largely due to rising domestic shale oil production and ethanol displacing crude imports,” the report said. The State Journal (Charleston, W.Va.) (1/20)

Fla. cellulosic-ethanol plant is nearing completion
Construction on the Ineos New Planet BioEnergy cellulosic plant in Vero Beach, Fla., could be completed by April 15, writes Jim Lane. The facility is 99% complete on the engineering side and 60% on the construction side, said company representative Dan Cummings. Once operational, the 8 million-gallon-per-year plant could turn Vero Beach into a net exporter of transportation fuels. BiofuelsDigest.com (1/19)

Obama Rejects Keystone Pipeline; TransCanada Plans New Request

January 19, 2012: BNA reports: “President Obama denies a presidential permit for the proposed Keystone XL oil sands pipeline from Canada to Texas, but TransCanada Corp. says it plans to file another application to keep the project going. On Capitol Hill, House and Senate Republicans say they intend to keep pressuring the administration to approve the politically charged project by inserting more congressionally mandated deadlines in future legislation.”

Canada Pledges to Sell Oil to Asia After Obama Keystone Denial

January 19, 2012: Bloomberg reports: “Canadian policy makers reacted to President Barack Obama’s decision to deny a pipeline permit to TransCanada Corp. by pledging to rely less on the U.S. for energy sales and export more oil to Asian markets. Prime Minister Stephen Harper, in a telephone call today, told Obama ‘that Canada will continue to work to diversify its energy exports,’ according to details of the call provided by Harper’s office. Canadian Natural Resource Minister Joe Oliver said relying less on the U.S. would help bolster the country’s ‘financial security.’ The ‘decision by the Obama administration underlines the importance of diversifying and expanding our markets, including the growing Asian market,’ Oliver told reporters in Ottawa. Currently, 99 percent of Canada’s crude exports go to the U.S., a figure that Harper wants to reduce in his bid to make Canada a “superpower” in global oil markets.”

“Fossil fuel forecast: a huge role”

January 19, 2012: The Houston Chronicle reports:  “Leaders of BP and ConocoPhillips called Wednesday for greater access to and development of oil and natural gas fields, as a BP report showed fossil fuels will continue to dominate the world’s energy needs for at least the next 20 years. Renewable energy is growing faster than other sources, at about 8.2 percent annually, but will make up only 6 percent of energy use by 2030, according to the forecast released Wednesday by BP. Oil, natural gas and coal will still account for 80 percent of global energy use. Separately, ConocoPhillips CEO James Mulva said in Houston that the need and availability of fossil fuels weigh against government policies he said tax oil and natural gas differently than other energy sources and require utilities to use certain levels of renewables. ‘Past assumptions of oil and gas scarcity that went into business strategic plans, government policies and public attitudes are out of date,’ Mulva said, speaking Wednesday at a summit hosted by Rice University’s Rice University’s Baker Institute.

“Study Confirms Nature Responsible for 90 Percent of the Earth’s Atmospheric Acidity”

January 18, 2012: Environmental Protection reports:“Satellites showing that nature is responsible for 90 percent of the earth’s atmospheric acidity shocked researchers from the Belgian Institute for Space Aeronomy, whose findings have just been published in the journal Nature Geoscience. …‘The modelling shows, particularly, that natural forest emissions have been highly underestimated. Our forest areas are producing more formic acid than we ever thought,’ Murphy said.”

Valero to pour $50M into Mascoma’s cellulosic-ethanol project
January 18, 2012: Valero Energy is planning to invest $50 million in Mascoma’s proposed cellulosic-ethanol plant in Michigan. Mascoma received $23.5 million in state funding and is awaiting approval of a $210 million federal loan guarantee for the project, which is estimated to cost $350 million. Construction is slated to begin this year with production to start in 2013.

Biofuel-powered flights could become the norm in 5-7 years
January 17, 2012: Biofuel-powered commercial flights could become commonplace within five to seven years, said Joachim Buse, Lufthansa’s vice president for aviation biofuels. The challenge is to produce sufficient amounts of renewable jet fuel at market prices, Buse said. “From now on, it’s purely a commercial issue,” Buse added. Air Transport World (1/17)

Status of world’s biggest cellulosic-ethanol plant
January 16, 2012: Cellulosic-biomass developer Beta Renewables has joined the Advanced Ethanol Council. Beta Renewables was formed as a joint venture between TPG and the Chemtex unit of Gruppo Mossi & Ghisolfi. Beta Renewables is developing the world’s biggest cellulosic-ethanol plant in Crescentino, Italy, and the facility is expected to go online by the middle of this year.

“Shale Gas Boom Undermines Appeal Of Renewable Energy Investments, WRI Says”

January 11, 2012: BNA reports: “The shale natural gas boom and uncertain U.S. support for clean energy are threatening further gains in renewable energy investments in 2012, Manish Bapna, interim president of World Resources Institute, said Jan. 10. The shale natural gas boom has the potential to divert investments from fossil fuels and renewables, Bapna said at a news conference on “Stories to Watch” on environmental and sustainability issues in 2012. And U.S. clean energy policies, including the uncertainty surrounding federal renewables subsidies, further threaten renewable energy gains, he said. …Moreover, Congress has expressed strong opposition to continuing subsidies for renewable energy projects.”

 

 “Dodging a Bullet on Gas Prices”
January 10, 2012: Appeal-Democrat (Yuba City, Calif.) editorial: “In a victory for consumers and fuel producers over an unreasonable dictate by California regulators, the low-carbon mandate of the state’s Global Warming Solutions Act has been put on hold by a federal judge. With challenges pending to similar laws in other states, a Supreme Court showdown on the issue is in the offing, and until then we are hopeful these Draconian, economy-stifling restrictions can be held at bay. The constitutional challenge to California’s low-carbon fuel standard will hold up enforcement of a requirement that some estimate could drive fuel prices up by as much as 30 percent, and which producers of transportation fuel claim discriminates against out-of-state providers by favoring in-state producers. …California’s low-carbon regulation was part of the sweeping Assembly Bill 32 signed in 2006 by then-Gov. Arnold Schwarzenegger.

German airline ends trial biofuel flights
Lufthansa is discontinuing its trial use of renewable jet fuel because it has run out of supplies of certified biofuels. “Lufthansa will only continue the practical trial if we are able to secure the volume of sustainable, certified raw materials required in order to maintain routine operations,” said project manager Joachim Buse. Lufthansa ran 1,187 flights on a blend of renewable fuels during a six-month trial period, which reduced the airline’s greenhouse-gas emissions by 1,621 tons, initial data showed. Reuters (1/9)

“Can a New Structure Based on the Notion of ‘Equity’ Replace the Kyoto “Pact?”

January 9, 2012: ClimateWire reports: “U.S. diplomats returned from last month’s global climate summit in Durban, South Africa, crowing that they had cracked the armor shielding China, India and other emerging nations from accepting binding emission cuts. But now a serious challenge awaits them: preparing for an entirely new climate change regime. Creating a different system — one that puts all countries on an even legal playing field while still remaining sensitive to different levels of wealth and historic emissions — promises to be a politically fraught and divisive task.”

 “Corn Seed Shortage Sows Farm Belt Woes”

January 6, 2012: The Wall Street Journal reports: “As farmers across the U.S. prepare to plant this year’s corn crop, they are running up against an unexpected obstacle: a lack of seed. By some estimates, U.S. production of corn seed was down 25% to 50% ahead of this planting season. Output of corn seed, which is grown from specialized plants, was sliced by drought conditions across the Midwest and the Great Plains last year. The shortage of seed threatens to scuttle what some expect to be the biggest planting of corn in the U.S., the world’s largest producer, since World War II. … The problem could mean the second year in a row of tumult for the corn market. Last year, hot weather led to a smaller U.S. crop than traders had expected, fueling a historic rally in corn prices to a record $8 a bushel in late spring.”

 “China Seeks Ways to Meet Rising Rural Energy Demands While Trying to Cut Emissions”

January 6, 2012: ClimateWire reports: As if China didn’t have enough problems with its voracious appetite for fossil fuels. Rapidly changing patterns of energy use by China’s small-town dwellers — who account for half of the nation’s population — are adding more volume to China’s demand for fossil fuels. … The nation, though, favors another option. In recent years, policymakers and climate activists have been scrambling for ways that would make clean energy more competitive than fossil fuel in the Chinese countryside.

“Ethanol Subsidy Ended by Congress, Signaling Political Shift”

January 5, 2012: International Business Times reports: “In allowing the demise of a formerly sacrosanct ethanol subsidy, Congress underscored both its drive to cut costs and the ethanol industry’s diminished need for economic support. The Energy Tax Act of 1978 sought to stimulate the ethanol industry by providing federal tax credits to gasoline refiners who purchased ethanol, a biofuel that in the United States is mostly produced from corn, to blend with gasoline. Corn farmers embraced the subsidy, which drove up the price of corn by increasing demand for ethanol, and it became common practice for presidential candidates to enthusiastically voice their support for the policy while campaigning in Iowa, a leading corn producer. But at a time when scaling back spending has come to dominate Washington, the political calculus has shifted.” 

Core construction at ZeaChem’s demo biorefinery reaches completion
The construction of the core technology at ZeaChem’s demonstration biorefinery in Boardman, Ore., has been completed on time, the company announced. The core technology will produce acetic acid and ethyl acetate from hybrid poplar trees. Pacific Ethanol will provide operational support at the plant as per the two companies’ October agreement. EthanolProducer.com (1/4)