We lead with late-breaking news that the Massachusetts DEP just revoked the approval for Palmer Renewable Energy’s controversial biomass generating plant in Springfield. Expect more details next week, but here’s a link to MA-DEP’s letter. Unfinished business includes the Baker administration’s desire to include biomass in the Renewable Portfolio Standard. We posted a well-considered editorial on the Springfield plant, which ends with a request for calls to Governor Baker, demanding a biomass-free RPS. At this moment, with the permit revoked, your call will be powerfully effective.
On the Weymouth compressor, we’ve chosen to feature an article that’s nearly a year old and doesn’t even mention this project. It does, however, shed considerable light on Pieridae Energy, its shaky finances and shady practices, and its big plans to develop the Goldboro LNG export facility in Nova Scotia. Meanwhile, a Natural Gas Intelligence report predicts that no new U.S. LNG projects will be financed in 2021 due to market headwinds – a potential red flag for Goldboro which is still trying to tie down its own investor commitments. The tangled web surrounding Enbridge, the Atlantic Bridge pipeline, Weymouth compressor, and Goldboro – and the politicians and regulators allowing all this to happen – is something we’re watching closely.
A pipeline we’re covering is Enbridge’s Line 5, under deadline pressure from Michigan’s Governor Whitmer to shut down its ancient section under the Straights of Mackinac. In the several years since Enbridge proposed to lay a replacement section of pipe through a sealed tunnel beneath the lakebed, project costs dramatically increased while prices declined for the fuels that pipeline would transport. Governor Whitmer is holding firm under intense pressure from Canada and industry.
On its face, our divestment story this week is a pessimistic assessment that green investing will fail to achieve positive climate goals. But it’s more of an observation that unfettered capital markets won’t respond to anything but the profit motive. It’s a call for better legislation, like Massachusetts’ new climate law, and firmer regulation of markets as called for by the International Energy Agency’s Fatih Birol, to steer us toward a greener economy. This is an urgent topic, because our continuing failure to slow emissions has so endangered the climate that some scientists believe it’s time to seriously study solar geoengineering – just to be ready to deploy if all else fails.
We found interesting reports about progress toward harnessing ocean wave energy, a serious technical challenge facing proponents of a hydrogen economy, and a cautionary story from Britain from their recent disastrous attempt to promote energy efficient building retrofits through a poorly executed program.
Clean transportation is a mixed bag, with an innovative car-sharing startup bringing electric vehicles to an underserved community in Boston – and a less-happy story warning that public transportation systems all over the world face a desperate financial reality since Covid-19 drove away so many passengers. Public transit is key to decarbonizing the transportation sector, but right now it’s just trying to survive.
One part of President Biden’s proposed infrastructure plan includes spending billions of dollars to cap and clean up many thousands of orphaned oil and gas wells left behind by the fossil fuel industry. It’s a jobs-and-climate program to employ skilled labor and mitigate the massive volume of planet-heating methane currently spewing unchecked into the atmosphere.
— The NFGiM Team
WEYMOUTH COMPRESSOR STATION
Alberta’s oil patch regulator made history of a sort last week by saying the word no. The reasons it did pitted a crusty cowboy against a wealthy ballet aficionado, and exposed a gambit by one of the world’s oil giants to offload its responsibilities in a way, the ruling said, that would have defied provincial law.
The story says a lot about where the world’s fossil fuel industry finds itself at this precarious moment, as it struggles to balance falling revenues against mounting environmental liabilities.
And it sheds light on how symbiotic government regulators, public pension managers, and energy corporation minnows and whales alike have become in Canada. It’s a tale with a few twists, so settle in.
It starts with a simple fact. In the last five years the Alberta Energy Regulator, which is funded by the industry, has watched cash-rich companies sell or trade off more than 150,000 inactive or uneconomic wells to small firms that didn’t have the financial ability to perform mandated well cleanups.
That’s what changed last week. Under intense public pressure, the regulator finally refused to greenlight one such transaction.
» Blog editor’s note: We’re posting this article here because it exposes the sketchy finances of Pieridae Energy, the company behind the controversial and highly speculative Goldboro LNG export facility in Nova Scotia – and an important destination for fracked natural gas pushed north from the Weymouth compressor station.
» Read article
As Canadian officials lobbied a Michigan Senate committee in March to keep the Line 5 pipeline open, Sen. Winnie Brinks (D-Grand Rapids) grew frustrated with a conversation that, up to that point, had focused mainly on the immediate economic and safety implications of a possible shutdown.
“We are at a moment of inflection on our energy future,” said Brinks, and will soon have no choice but to stop burning oil and other fossil fuels to power our vehicles and homes. Additional investment in the pipeline, she said, “does not seem to be the most enlightened way to go forward.”
Rocco Rossi, President and CEO of the Ontario Chamber of Commerce, which wants the pipeline kept open, was quick to rebut.
“All of us want a lower (greenhouse gas) future,” Rossi said. But the transition away from the petroleum products that Line 5 carries “is not going to be overnight.” In the meantime, he said, pipelines are the safest and cleanest way to move petroleum from the Alberta tar sands in western Canada to facilities in the U.S. and eastern Canada where it’s turned into propane, jet fuel, plastics and fertilizer.
The exchange highlights a sharpening focus on global climate change and economy-wide energy transitions, in a pipeline fight that began with concerns about oil spill risks in a 4-mile-wide strip of water known as the Straits of Mackinac.
Against the backdrop of recent carbon neutrality pledges from Governor Gretchen Whitmer and President Joe Biden, activists have ramped up their arguments that the Canadian oil giant Enbridge Energy is threatening Michigan’s water as well as its climate future.
Enbridge and its supporters have defended Line 5 as a necessary asset in the transition to clean fuels, without which energy consumers in Michigan and elsewhere would suffer.
Now, as a federal judge considers whether Line 5 should shut down in May and state and federal regulators decide whether to let Enbridge replace it with a tunneled pipe deep below the straits that could keep the oil flowing for decades, they’ll grapple with an issue of global significance:
Are pipelines like Line 5 a “bridge to the energy future,” as Enbridge CEO Al Monaco has said, or a climate liability that threatens Michigan’s and the world’s progress toward carbon neutrality?
Enbridge initially planned to spend $500 million on the tunnel project, bringing it online by 2024. But costs and timelines are both in flux, and experts hired by opponents of the pipeline say the project could cost as much as $2 billion and take years longer.
“The writing’s on the wall that fossil fuel investments are not the future,” said Kate Madigan, director of the Michigan Climate Action Network, one of several groups that are urging state and federal decisionmakers to factor climate and energy trends into permitting decisions for the tunnel project. “It’s really quite remarkable that we’re even considering whether to build an oil tunnel, just on economic grounds alone.”
» Read article or listen to broadcast recording
Green investing ‘is definitely not going to work’, says ex-BlackRock executive
Tariq Fancy once oversaw the start of the biggest effort to turn Wall Street ‘green’ – but now believes the climate crisis can never be solved by today’s free markets
By Dominic Rushe, The Guardian
March 30, 2021
From his desk in midtown Manhattan Tariq Fancy once oversaw the beginning of arguably the biggest, most ambitious, effort ever to turn Wall Street “green”. Now, as environmentally friendly investing grows at an exponential rate, Fancy has come to a stark conclusion: “This is definitely not going to work.”
As the former chief investment officer for sustainable investing at BlackRock, the world’s largest asset manager, Fancy was charged with embedding environmental, social and governance (ESG) corporate policies across the investment giant’s portfolio.
Fancy was a leader in a movement that has given many people, including investors, activists and academics, hope that after years of backing polluters, Wall Street was finally stepping up to confront the climate crisis.
“I have looked inside the machine and I can tell you business does not have this,” Tariq told the Guardian. “Not because these are bad people but because they run for-profit machines that will operate exactly as you would expect them to do,” said Fancy.
Investors have a fiduciary duty to maximise returns to their clients and as long as there is money to be made in activities that contribute to global warming, no amount of rhetoric about the need for sustainable investing will change that, he believes.
“In many cases it’s cheaper and easier to market yourself as green rather than do the long tail work of actually improving your sustainability profile. That’s expensive and if there is no penalty from the government, in the form of a carbon tax or anything else, then this market failure is going to persist,” said Fancy, a former investment banker who now leads an initiative to bring affordable digital education to underserved communities worldwide.
The amount of money that poured into sustainable investment through vehicles like exchange traded funds (ETFs) hit record levels last year. It’s a trend Fancy believes could continue for years and still have zero impact on climate change because “there is no connection between the two things”.
He compared the business communities reaction to the coronavirus pandemic to its views on climate change. “Science shows us that Covid-19 is a systemic problem for which we all need to bend down a curve, the infections curve.”
As the crisis escalated business leaders were immediately supportive of government-led initiatives to restrict travel, close venues and shutter the economy. “The Business Roundtable [the US’s most powerful business lobby] said we should make mask-wearing mandatory. They were right about all those things,” he said.
The world needed government to use its extraordinary powers “because if you left it to the free market everything would have been open in the US and we would have lost millions of people, it wouldn’t have been half a million”.
Climate change too is a problem science says is systemic and one where we have to bend down the curve. “The difference is the incubation period. It’s not a few weeks, it’s a few decades. For that they are still saying we should rely on the free market. That’s where I have a problem.”
» Read article
Gov. Charlie Baker signed a sweeping climate bill into law on Friday, signaling a new era in Massachusetts’ plans to cut greenhouse gas emissions, build a greener economy and prioritize equity and environmental justice.
The new law, “An Act Creating a Next Generation Roadmap for Massachusetts Climate Policy,” represents the most significant update to climate policy in the Commonwealth since the landmark 2008 Global Warming Solutions Act. And with hundreds of statutory updates and changes, it tackles a lot — everything from solar panels and offshore wind to new building codes and regulatory priorities for state agencies.
Climate and energy policy can be confusing and full of jargon, but here — in simple English — is what you need to know about what’s in the new law:
» Read article or listen to broadcast recording
IT TOOK BASICALLY all of the last legislative session and the first three months of the new one to get major climate policy signed into law, but the real work begins now that Gov. Charlie Baker has put his signature on the law.
After it took a long, winding and sometimes contentious road, the governor on Friday afternoon signed the long-discussed legislation designed to commit Massachusetts to achieve net-zero carbon emissions by 2050, establish interim emissions goals between now and the middle of the century, adopt energy efficiency standards for appliances, authorize another 2,400 megawatts of offshore wind power and address needs in environmental justice communities.
“I’m proud to say that climate change has not been, ever, a partisan issue. We know the impacts on our coasts, on our fisheries, on our farms and our communities are real, and demand action, and that’s why we’ve been committed for over a decade to … doing the things we need to do to deal with the issue at hand and to maintain a structure that’s affordable for the people of the commonwealth,” Baker said after signing the bill in the State House library. He added, “This bill puts us on an ambitious path to achieving a cleaner and more livable commonwealth, while also creating economic development opportunities to support the initiatives.”
Baker and the Legislature see eye-to-eye when it comes to the goal of achieving net-zero carbon emissions by 2050, but the details of how the state would get there proved to be a much more complicated conversation. On Friday, Baker said he was glad lawmakers “went back and forth and back and forth and back and forth on this” with his administration before settling on the final language.
The new law requires that greenhouse gas emissions in 2030 be at least 50 percent lower than 1990 emissions, that 2040 emissions be at least 75 percent lower and that 2050 emissions be at least 85 percent below 1990 emissions. In order to actually net out at zero emissions by 2050, the state will have to make up the remainder, up to 15 percent, through strategies like carbon sequestration and carbon banking. The Baker administration has similarly embraced natural climate solutions in its own climate plans.
The law also requires the executive branch to set interim limits for 2025, 2035 and 2045, and to set sublimits for six sectors of the economy — electric power; transportation; commercial and industrial heating and cooling; residential heating and cooling; industrial processes; and natural gas distribution and service — every five years. Each five-year emissions limit “shall be accompanied by publication of a comprehensive, clear and specific roadmap plan to realize said limit,” the law requires.
That work will begin almost immediately. The first interim plan required by the new law, the plan for 2025, must be in place along with the 2025 emissions limit by July 1, 2022. The bill also requires the Department of Public Utilities to consider emissions reductions on an equal footing as its considerations of reliability and affordability within 90 days, that the governor appoint three green building experts to the Board of Building Regulations and Standards, and that the administration establish the first-ever greenhouse gas emissions reduction goal for the home energy efficiency program MassSave.
» Read article
GREENING THE ECONOMY
Urgent policies needed to steer countries to net zero, says IEA chief
Economies are gearing up for return to fossil fuel use instead of forging green recovery, warns Fatih Birol
By Fiona Harvey, The Guardian
March 31, 2021
New energy policies are urgently needed to put countries on the path to net zero greenhouse gas emissions, the world’s leading energy economist has warned, as economies are rapidly gearing up for a return to fossil fuel use instead of forging a green recovery from the Covid-19 pandemic.
Most of the world’s biggest economies now have long-term goals of reaching net zero by mid-century, but few have the policies required to meet those goals, said Fatih Birol, the executive director of the International Energy Agency (IEA).
The IEA’s latest figures show global coal use was about 4% higher in the last quarter of 2020 than in the same period in 2019, the clearest indication yet of a potentially disastrous rebound in the use of the dirtiest fossil fuels, following last year’s lockdowns around the world when emissions plummeted.
Birol told the Guardian: “We are not on track for a green recovery, just the opposite. We have seen global emissions higher in December 2020 than in December 2019. As long as countries do not put the right energy policies in place, the economic rebound will see emissions significantly increase in 2021. We will make the job of reaching net zero harder.”
He urged governments to support clean energy and technology such as electric vehicles, and make fossil fuels less economically attractive. “Governments must provide clear signals to investors around the world that investing in dirty energy will mean a greater risk of losing money. This unmistakable signal needs to be given by policymakers to regulators, investors and others,” he said.
Blog editor’s note: this last paragraph reinforces Tariq Fancy’s warning that green investing is ‘not going to work’ (see Divestment). Mr. Fancy’s pessimistic prediction is meant to warn that governments must provide effective regulatory and financial frameworks, rather than allowing free markets to solve the climate problem by themselves.
» Read article
A new report from the National Academies of Sciences, Engineering and Medicine tackles a controversial question: Is solar geoengineering – an approach designed to cool Earth by reflecting sunlight back into space or modifying clouds – a potential tool for countering climate change?
The report, produced by a committee of 16 experts from diverse fields, does not take a position but concludes that the concept should be studied. It calls for creating a multidisciplinary research program, in coordination with other countries and managed by the U.S. Global Change Research Program, that seeks to fill in the many knowledge gaps on this issue.
The study emphasizes that such research is not a substitute for cutting greenhouse gas emissions and should be a minor part of the U.S. response to climate change. It notes that “engineering the climate” would not address the root cause of climate change – greenhouse gas emissions from human activities. And it calls for a research program that draws on physical science, social science and ethics and includes public input.
These perspectives from three members of the study committee underline the complexity of this issue.
» Read article
The U.S. is finally looking to unlock the potential of wave energy
After decades of false starts, the federal approval of a new testing site off the coast of Oregon could give wave energy a much-needed jolt.
By Ysabelle Kempe, Grist
March 29, 2021
At first glance, waves have the makings of an ideal renewable energy source. They’re predictable, constant, and tremendously powerful. Their energy potential is astonishing — researchers estimate that waves off the coasts of the United States could generate as much as 2.64 trillion kilowatt-hours annually, or the equivalent of 64 percent of the country’s total electricity generation in 2019.
But capturing the immense power radiating across our oceans’ surfaces is no easy feat — wave energy technology is challenging to engineer, start-up costs are high, and testing in open ocean waters is a regulatory nightmare. That’s why wave energy’s trajectory has been a stop-and-go affair plagued by false starts for decades. But things may finally be starting to shift for the industry: The federal government recently approved the first full-scale, utility grid-connected wave energy test site in the U.S.
The Oregon State University-led project, PacWave South, is a 2-square-mile patch of ocean 7 miles off the rugged Oregon coast, where developers and companies can perform large-scale testing of their wave energy technologies. It will cost $80 million and is scheduled to be up and running by 2023. The design includes four testing “berths,” where wave energy devices will be moored to the seafloor and connected to buried cables carrying electricity to an onshore facility. In total, the PacWave South facility will be able to test up to 20 wave energy devices at once.
While wave energy technology is still in the research and development phase, experts see it as a promising newcomer to the renewable energy landscape. In 2019, the global wave energy market was valued at $43.8 million and is expected to more than triple by 2027.
» Read article
Experts believe hydrogen could be a boon for renewables and a death knell for the burning of fossil fuels, with “green” hydrogen requiring only electricity and water for its manufacture.
As per the 2019 Australian National Hydrogen Strategy, Australia is at full-speed preparing to use hydrogen as a clean, flexible, sustainable, and storable energy source to achieve the decarbonisation promised in the 2015 Paris Agreement.
Australia also has the potential to become a superpower in the global supply of hydrogen fuel, due to our world-leading renewable energy capacity and our existing strong networks of infrastructure for gas transport and storage.
There are clear environmental and economic incentives for Australia to establish a hydrogen economy, however it’s not as simple as changing out one source of energy for hydrogen.
For a large roll-out of hydrogen power and for Australia to lead in this space, there’s one huge hurdle that must be addressed. That hurdle is known as “hydrogen embrittlement.”
When engineering alloys such as steels or nickel-based alloys are exposed to hydrogen-containing environments, their mechanical performance can deteriorate to the point that catastrophic failure occurs. Scientists and engineers have known about hydrogen embrittlement for more than a century, but the problem remains unsolved.
» Read article
Retrofitting homes is a key pillar of Joe Biden’s $2 trillion American Jobs Plan to “build back better” from the COVID-19 recession. The president urged Congress on Wednesday to mobilize $213 billion to “produce, preserve, and retrofit” more than a million homes for affordability and efficiency. In addition to creating jobs, energy efficiency measures like insulating roofs and walls and installing electric heating will save people money on their utility bills and reduce carbon emissions from the nation’s buildings.
But the Biden administration would be wise to look across the pond for a cautionary tale before rolling out any such program too quickly.
Last summer, U.K. Prime Minister Boris Johnson’s administration unveiled its own “build back better” economic stimulus package, which centered around a $2 billion program to retrofit England’s homes. The program was supposed to fund energy efficiency and clean heat upgrades in 600,000 homes, getting the country closer to net-zero emissions while creating 100,000 jobs, but it was canceled last week after a shambolic six-month run that may have killed more jobs than it spurred.
“When it comes down to improving the energy efficiency of our homes, this is about the worst thing the government could have done,” Andrew McCausland, the director of a British contracting company, told the i, a daily newspaper. “It has destroyed confidence in the building business in taking on this work in the future.”
» Read article
This Boston car-sharing service puts low-income drivers in electric vehicles
Good2Go’s small fleet of electric vehicles provides a clean, affordable transportation option in a neighborhood where many households cannot afford to own a car and public transit can be unreliable.
By Sarah Shemkus, Energy News Network
March 31, 2021
A car-sharing program that combines electric vehicles and income-tiered pricing has launched in one of Boston’s busiest and most diverse neighborhoods.
The Good2Go service, one of the first of its kind in the country, aims to curb carbon emissions while giving low-income Roxbury residents access to reliable, flexible, and affordable transportation. So far the service has deployed four 2019 Nissan Leafs, and dozens of beta testers are using the cars to commute to work, bring their children to school, and run errands.
“We are officially on the road,” said Susan Buchan, director of energy projects at clean energy nonprofit E4TheFuture, which operates the new service.
Like well-known car-sharing services such as Zipcar, Good2Go gives users a chance to rent vehicles at an hourly rate. Drivers pick up the car, go about their business, then return the vehicle to the same spot they picked it up, paying only for the time they used. The goal is to give people the advantages of a personal vehicle, without the costs and logistical difficulties of car ownership.
Good2Go, however, tweaks the established car-sharing model to focus on environmental impact and economic equity. By using electric vehicles, the service could have a direct impact on the air quality in the community. And car-sharing programs have been shown to take as many as six to 14 cars off the road for each vehicle deployed, Buchan said, reducing emissions even before the switch to electric.
The pricing model is income-tiered so low-income customers pay $5 an hour instead of the standard hourly rate of $10. Participants qualify for the reduced rate if they are enrolled in any of 20 public assistance programs, such as Medicaid or veterans benefits. Program operators made such an expansive eligibility list to make it as simple as possible for low-income residents to qualify.
» Read article
Riders Are Abandoning Buses and Trains. That’s a Problem for Climate Change.
Public transit offers a simple way for cities to lower greenhouse gas emissions, but the pandemic has pushed ridership, and revenue, off a cliff in many big systems.
By Somini Sengupta, Geneva Abdul, Manuela Andreoni and Veronica Penney, New York Times
March 25, 2021
On the London Underground, Piccadilly Circus station is nearly vacant on a weekday morning, while the Delhi Metro is ferrying fewer than half of the riders it used to. In Rio, unpaid bus drivers have gone on strike. New York City subway traffic is just a third of what it was before the pandemic.
A year into the coronavirus pandemic, public transit is hanging by a thread in many cities around the world. Riders remain at home or they remain fearful of boarding buses and trains. And without their fares, public transit revenues have fallen off a cliff. In some places, service has been cut. In others, fares have gone up and transit workers are facing the prospect of layoffs.
That’s a disaster for the world’s ability to address that other global crisis: climate change. Public transit offers a relatively simple way for cities to lower their greenhouse gas emissions, not to mention a way to improve air quality, noise and congestion.
In some places, fear of the virus has driven people into cars. In the United States, used car sales have shot up and so have prices of used cars. In India, a company that sells secondhand cars online saw sales swell in 2020 and its own value as a company jump to $1 billion, according to news reports. Elsewhere, bike sales have grown, suggesting that people are pedaling a bit more.
The worry about the future is twofold. If commuters shun public transit for cars as their cities recover from the pandemic, that has huge implications for air pollution and greenhouse gas emissions. Most importantly, if transit systems continue to lose passenger fare revenues, they will not be able to make the investments necessary to be efficient, safe and attractive to commuters.
» Read article
FOSSIL FUEL INDUSTRY
Biden Takes Aim at Reducing Emissions of Super-Polluting Methane Gas, With or Without the Republicans
The president wants to put pipefitters and miners to work capping “orphaned” gas wells as part of his forthcoming $3 trillion infrastructure plan.
By Marianne Lavelle, Inside Climate News
March 29, 2021
The first greenhouse gas actions under the Biden administration are likely to be curbs on the climate “super-pollutant” methane, as both Congressional Democrats and the White House readied moves they can make even without help from Republicans.
Senate Majority Leader Chuck Schumer (D-N.Y.) pledged Thursday to bring a resolution to the floor in April that would reverse one of the Trump administration’s final climate policy rollbacks, the lifting of requirements for oil and gas companies to monitor and fix methane leaks from wells and other infrastructure.
That problem was also on President Joe Biden’s mind, as he indicated that fixing methane leaks was one of the key jobs-creation items he planned to include in the infrastructure package he is rolling out this week that is estimated to cost $3 trillion. Biden’s focus was on so-called “orphaned” wells, those that have been abandoned by defunct companies.
“We have over 100,000 wellheads that are not kept, leaking methane,” Biden said at his first White House news conference Thursday. “We can put as many pipefitters and miners to work capping those wells at the same price that they were charged to dig those wells.”
Both the Trump rule repeal and the infrastructure plan are measures that could be passed in Congress without any support from Republicans (although Biden has said he is seeking bipartisan support.)
Adding to the momentum for action on methane was the American Petroleum Institute’s climate action proposal unveiled last week. Although most attention was on the API’s first-ever endorsement of a carbon tax or other pricing mechanism, the oil and gas industry’s largest trade group included in its package a call for “direct regulation of methane.”
» Read article
Developing new shale gas fields in Appalachia “may not end up being profitable” in the years ahead according to a new report. In addition, the associated petrochemical buildout that the region has pinned its hopes on as the future of natural gas is “unlikely,” the report states.
Natural gas drillers need prices to rise in order to turn a profit and continue expanding, a scenario that appears doubtful, according to the report published by the Stockholm Environment Institute’s US Center (SEI) and the Ohio River Valley Institute (ORVI), a Pennsylvania-based economic and sustainability think tank. Volatile market conditions for plastics are also putting the region’s plans for new petrochemical plants in question.
Given the poor financial results from the industry over the past decade, “gas prices would need to rebound and increase” if the fortunes of Appalachia’s shale industry are to improve, study co-authors, Peter Erickson, climate policy program director at SEI, and Ploy Achakulwisut, a scientist at SEI, wrote in the report.
Appalachia — already suffering from a long drawn out bust in the coal industry — has for much of the past decade seen natural gas prices languish as drillers pumped too much gas out of the ground, which has resulted in persistently low prices. And a renewed price surge appears unlikely as gas faces growing competition from solar and wind.
“Now there are signs that gas itself could get passed up for lower-cost renewables, introducing new risks for communities that rely on gas extraction for employment and tax revenue,” the authors wrote.
Due to liquefied natural gas (LNG) being a powerful and growing source of climate pollution, LNG’s expansion “would need to be — at best — short-lived,” the SEI/ORVI report’s authors state, noting that global decarbonization efforts could displace much of the gas demand that the industry is anticipating.
At the same time, a souring market for petrochemicals — a result of the industry overbuilding capacity and an uncertain plastic consumption outlook in the future — also undercuts the need for developing a major new petrochemical hub in the region. This is much to the disappointment of various business groups, regional politicians, and even the U.S. government who had planned on this being one of the last bastions of hope for the shale gas industry.
“The regional market is way oversupplied. So, you either find some regional use to consume it, or you’re kind of stopped, you hit a brick wall there,” Anne Keller, an independent consultant and former research director for NGLs at consulting firm Wood Mackenzie, told DeSmog.
Keller doesn’t see global decarbonization efforts cutting into gas demand to such an extent that it would hit Appalachian prices for the foreseeable future. “I’m kind of skeptical about that,” she said. Nevertheless, she did agree that the region is suffering from tremendous oversupply of gas, and that petrochemicals do not offer a way out.
The business case for Appalachian petrochemicals was that it had access to a large U.S. market for plastics, there was an abundant and cheap ethane supply, and low logistics costs. “The dynamics of ethylene have changed,” Keller said, referring to the product produced after ethane is “cracked.”
The Atlantic Coast pipeline was cancelled last year due to delays and ballooning costs. Keller said that all eyes are now on the Mountain Valley Pipeline, a pipeline that would carry Appalachian shale gas to the southeast. “That is the big one. It’s critical,” Keller told DeSmog. It is over 90 percent complete but has been hit with legal and regulatory delays and still faces questions about whether it will be finished.
“The view is if that goes through, [the industry will] breathe a sigh of relief for two or three years..but then you’re back to what’s the next tranche of market access,” Keller said. “If it doesn’t go through, you’re going to see a scramble to rethink strategy.”
» Read article
» Read the SEI-US report
LIQUEFIED NATURAL GAS
No U.S. liquefied natural gas (LNG) projects are expected to be sanctioned this year, marking the second year in a row developers may postpone moving ahead with facilities, according to Wood Mackenzie.
Consultants during a webcast last week said domestic final investment decisions (FID) were unlikely as sponsors struggle to secure long-term contracts
“Generally, we’ve seen a slowdown in the pace of sales contract activity,” said Wood Mackenzie’s Alex Munton, principal analyst for North American LNG. “Pre-FID projects will continue to struggle to secure buyers, given the huge wave of LNG currently under construction globally. For that reason, we see a limited window to project FIDs in the U.S. for the next couple of years.”
Some projects may not survive, he said, noting Annova LNG’s decision to shelve its South Texas development.
» Read article
Think globally, act locally. Fairly reliable advice, particularly for tackling massive issues like climate change and social injustice.
It’s a useful approach for the growing number of us who support making a just transition to an economy that no longer is based on burning fossil fuels that emit greenhouse gases.
It is a particularly appropriate lens through which to view the intensifying effort to prevent Palmer “Renewable” Energy from constructing a 42-megawatt biomass electric-generating plant in East Springfield. Its smokestacks must be 200 feet high because of the amount of pollution it will produce, nearly 200 tons per year of a toxic stew that provokes asthma, chronic obstructive pulmonary disease, vascular disease, cancer and an increased susceptibility to COVID-19 infection.
Studies have shown that biomass burning produces more particular matter — the damaging pollutant that buries itself deep in the lungs per unit electricity generated — than does coal. And those high smokestacks are not enough to protect the low-income, racially-diverse community in which the plant is being sited, or the city of Springfield itself, from the smoke and fumes.
Let’s get one thing straight: the inefficient burning of woody biomass for electricity is not an answer to the threat of climate change. The carbon dioxide sequestered in trees is released immediately into the atmosphere when burned, in amounts greater per electrical unit produced than from burning coal, the most harmful fossil fuel. Yes, you can plant trees to recapture that carbon, but that process is not effective for decades for wood wastes, to over a century for whole trees, according to the study authorized by our state nine years ago.
The findings of that study forced the state to remove inefficient biomass from the Renewable Portfolio Standard. Scientists knew we don’t have a century, or even decades, to lower our emissions to prevent the worst effects of global warming.
The recent attempts by politicians to reinstate biomass as a clean and green energy option are a shameless attempt at greenwashing.
This is our local challenge and you can act by calling Gov. Baker at 888-870-7770 and Massachusetts Department of Energy Resources Commissioner Patrick Woodcock at 617-626-7332 to tell them that you are opposed to making biomass subject to renewable energy subsidies and opposed to the Palmer plant. It is a false climate solution and is harmful to people in Springfield and the surrounding area. For more information, go to notoxicbiomass.org/.
» Blog editor’s note: MA-DEP just cancelled the Palmer Renewable Energy plant permit, but Palmer can request an adjudicatory hearing. Your calls to Baker and Woodcock are therefore doubly important. Confirm opposition ahead of a potential hearing, and express opposition to biomass subsidies in the Renewable Portfolio Standard.
» Read MA-DEP letter to Palmer’s Victor Gatto
» Read article
» Read the Manomet study on Biomass Sustainability and Carbon
The ‘Green Energy’ That Might Be Ruining the Planet
The biomass industry is warming up the South’s economy, but many experts worry it’s doing the same to the climate. Will the Biden Administration embrace it, or cut it loose?
By MICHAEL GRUNWALD, Politico
March 26, 2021
Here’s a multibillion-dollar question that could help determine the fate of the global climate: If a tree falls in a forest—and then it’s driven to a mill, where it’s chopped and chipped and compressed into wood pellets, which are then driven to a port and shipped across the ocean to be burned for electricity in European power plants—does it warm the planet?
Most scientists and environmentalists say yes: By definition, clear-cutting trees and combusting their carbon emits greenhouse gases that heat up the earth. But policymakers in the U.S. Congress and governments around the world have declared that no, burning wood for power isn’t a climate threat—it’s actually a green climate solution. In Europe, “biomass power,” as it’s technically called, is now counted and subsidized as zero-emissions renewable energy. As a result, European utilities now import tons of wood from U.S. forests every year—and Europe’s supposedly eco-friendly economy now generates more energy from burning wood than from wind and solar combined.
Biomass power is a fast-growing $50 billion global industry, and it’s not clear whether the climate-conscious administration of President Joe Biden will try to accelerate it, discourage it or ignore it. It’s usually obvious which energy sources will reduce carbon emissions, even when the politics and economics are tricky; everyone agrees that solar and wind are cleaner than coal. But when it comes to power from ground-up trees, there’s still a raging substantive debate about whether it’s a forest-friendly, carbon-neutral alternative to fossil fuels, or an environmental disaster. Even within the Biden administration, senior officials have taken different sides of that debate.
Biden’s answer will be extremely important, because as odd as it sounds during a clean-tech revolution driven by modern innovations like advanced batteries and smart grids, there’s been a resurgence in the old-fashioned technique of burning wood to produce energy. The idea that setting trees on fire could be carbon-neutral sounds even odder to experts who know that biomass emits more carbon than coal at the smokestack, plus the carbon released by logging, processing logs into vitamin-sized pellets and transporting them overseas. And solar panels can produce 100 times as much power per acre as biomass.
Nevertheless, the global transition away from fossil fuels has sparked a boom in the U.S. wood-pellet industry, which has built 23 mills throughout the South over the past decade, and is relentlessly trying to brand itself as a 21st-century green energy business. Its basic argument is that the carbon released while trees are burning shouldn’t count because it’s eventually offset by the carbon absorbed while other trees are growing. That is also currently the official position of the U.S. government, along with many other governments around the world.
The rapid growth of biomass power over the past decade is in part a story about the unintended consequences of the arcane accounting rules that countries use to track their progress toward global climate goals.
It’s complicated, but the United Nations basically set up global reporting rules that were designed to avoid double-counting emissions, and inadvertently ended up making it easy not to count the emissions at all. In theory, countries were allowed to ignore the emissions from burning wood in power plants as long as they counted the emissions from logging the wood in forests. In practice, countries have let their power plants burn wood without counting the emissions anywhere, which has made biomass seem as climate-friendly as wind or solar.
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