Britain’s first nuclear plant in 20 years is a bet energy prices will rise. Experts say the new Hinkley Point facility will be “the most expensive power station in the world” and if the bet fails, the deal will prove “economically insane”.
“The Government is taking a massive bet that fossil fuel prices will be extremely high in the future,” the Telegraph quotes Peter Atherton and Mulu Sun, who analysed the finances of British energy companies for stockbroker Liberum Capital.
The deal to construct two nuclear reactors at Hinkley Point in southwest England – the world’s first nuclear deal since Fukushima disaster – was agreed by the UK, Electrcite de France SA (EDF) and China. To have a guaranteed return on the estimated $26 billion investment, the plant owners need the cost of fossil fuel such as oil and gas to rise dramatically.
The Liberum analysts estimate the minimum energy price would need to stand above £121 per megawatt hour within ten years, which means the wholesale price of gas would have to go up by about 127 percent over that period. Wholesale prices were about £60 last year, according to the energy watchdog Ofgem.
This is the equivalent to an oil price of well above $200 a barrel, compared with about $110 this week, the Telegraph reports.
“We are frankly staggered that the Government thinks it is appropriate to take such a bet and underwrite the economics of this power station. We are flabbergasted that it has committed future generations of consumers to the costs that will flow from this deal,” the Liberum Capital analysts say.
The $26 billion (£16 billion) price tag of the two reactors would be enough to build gas-fired power stations with output eight times higher, Liberum calculated.
“For the cost of £16bn for the 3,200MW to be built at Hinkley, the UK could build 27,000MW of new gas-fired power stations, solving the ‘energy crunch’ for a generation.”
October 31, 2013
Posted by aletho |
Economics, Malthusian Ideology, Phony Scarcity, Nuclear Power, Timeless or most popular | Électricité de France, British Energy, Energy, Fukushima Daiichi nuclear disaster, Hinkley Point, Infrastructure, UK |
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Germany’s environment minister has admitted that the government faces an uphill climb if it is to achieve the targets it has set out for reducing carbon emissions while simultaneously stopping nuclear energy production.
Germany’s environment minister raised eyebrows on Sunday by conceding that some of the targets that are part of the government’s policy of phasing out the use of nuclear energy, while at the same time cutting emissions of greenhouse gases, may not be achievable.
“It has to be questioned whether we’ll really succeed in reducing electricity use by 10 per cent by 2020,” Peter Altmaier said in an interview with the Bild am Sonntag newspaper.
“If we are going to somehow achieve this, it will take tremendous effort, ” he said.
Altmaier also admitted that the government had a long way to go in efforts to convince a large number of Germans to switch from vehicles powered by internal combustion engines to electric cars.
There may be “significantly fewer” electric cars on the road by 2020 than the government had previously assumed, the minister said.
Chancellor Angela Merkel’s center-right coalition had previously said that it was on track to put a million electric cars on the road by 2020. Official figures put that number at just over 4,500 at the start of 2012.
Rising consumer costs a possibility
Altmaier also warned of the danger of rising energy costs for consumers.
“If we aren’t careful, the energy reforms could develop into a social problem,” he said, admitting that in efforts to replace nuclear energy with renewables, “the question of energy affordability had been overlooked.”
He also said that turning off a number of nuclear plants meant that power shortages could not be ruled out in the coming winter.
“Last winter there were a few critical moments, which we have learned from,” he said, adding that preparations were underway to ensure this doesn’t happened again. … Full article
July 16, 2012
Posted by aletho |
Economics, Nuclear Power | Angela Merkel, Energy, Germany, Greenhouse gas, Nuclear power, Peter Altmaier |
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This past week, U.S. President Barak Obama announced a plan to displace 11 percent of U.S. oil consumption with biofuels by 2022, offering $786 million in subsidies to energy corporations for new refineries in an ethanol industry that is far from being economically viable.
Under the new Obama plan the Environmental Protection Agency (EPA) will require fuel refiners and importers to guarantee that a percentage of their fuel is from renewable sources. The percentage will increase each year until the country is using 36 billion gallons of renewable fuel by 2022.
“It’s another opportunity for producers to profit” Agriculture Secretary Tom Vilsack says, but the fact that the plan is being marketed as such might suggest cause for caution in an industry that exists almost wholly due to federal mandates.
“Our economy is at the mercy of foreign oil producers, and everybody feels that when it hits us at the pump,” EPA Administrator Lisa Jackson said in support of the new plan. In fact though, recent events in the oil markets reveal that it was market activity rather than suppliers that caused the oil price bubble. Just as with real estate, there never was a lag in supply and prices were boosted by speculative trading with some shipments exchanging hands dozens of times while en route to their destinations. Hedge funds gambled with highly leveraged portfolios of oil futures in a bubble market fed by alarmist fears of ever compounding rates of growth in oil demand balanced against projected future oil production data that didn’t recognize unconventional oil.
The reality is that energy producers, whose economies are reliant on exports for as much as 95% of their income, are much more at the mercy of the demand-side driven market. Entire national government budgets are funded by nothing else but oil receipts. Energy production and supply is an industry that is characterized by interdependence between importer and exporter, this is why Europe and China are engaging in long term supply contracts that offer stability for all involved.
Left unaddressed by the Obama team is the harsh reality of globalized commodity markets which will see basic food prices sustain price rises that result in starvation for hundreds of thousands or as many as tens of millions of the world’s poorest, often landless, populations. It takes 232 kilos of maize to fill a standard gas tank with fuel. In this case, supply and demand are actually at work affecting market prices and economic choices such as which type of use land is put to.
Hilaire Avril of Inter Press Service writes:
Responding to European hunger for biofuel, many African countries have expanded single-crop farming surfaces. But only large businesses have the resources and capital to reach the critical size that allows for economies of scale which make the venture profitable.
Smallholders, which in countries like Benin account for the majority of land use, and up to 80 percent of employment opportunities, do not benefit from the biofuel windfall. In addition, land, water and other limited resources are being diverted from scarce food-producing crops.
Several international institutions, including the International Monetary Fund and the Food and Agriculture Organisation, have acknowledged in recent years that the increasing demand for biofuel crops has catastrophic social, economic and nutritional impacts on developing countries and their already tense food resources.
In Senegal, which was affected by food riots a year ago, up to 200,000 hectares (10 percent of the country’s arable lands) might be set aside for jatropha crops for biofuels.
Second and third generation biofuels are supposed to limit environmental and social impacts because of either the use of non food-producing crops or biomass such as algae and fungus.
“That’s a sham,” insists Ambroise Mazal of the Catholic Committee against Hunger and for Development, “because second generation fuels made from non-edible crops still take up arable lands and the research is far from developing sustainable biomass in laboratories.”
Why did Obama choose to exceed both the Bush and E.U. mandates? Even the Congressional Budget Office has reported that ethanol mandates drive food prices higher. While Obama’s connections with corporate agriculture are well documented and widely reported, less discussed is the Israel lobby’s interest in “energy independence”. It seems that as in so many other crucial areas of U.S. policy, the Israel lobby has been influencing the energy agenda as well. Nancy Pelosi perceives a need (for America?) to “achieve independence from Middle East oil.” Even though imports from Middle East sources account for only a small percentage of U.S. oil imports. One wonders just what scenario of hers results in a cessation of oil exports from the Middle East, Israeli aggression on Iran perhaps?
House Speaker Nancy Pelosi at a 2007 AIPAC conference:
“With innovation, we broaden our horizons, and expand our vision, in order to create a better world. That is why House Democrats have introduced our Innovation Agenda: A Commitment to Competitiveness to Keep America Number One. I know this is an area where the United States and Israel can work together.
“At the end of February, the House passed legislation to foster joint projects between the United States and key allies such as Israel, which offer the promise of using the best new innovation to improve security for all of us.
“In energy policy, the United States and Israel have another opportunity to combine our best innovative ideas. The U.S.-Israel Energy Cooperation Act would help fund joint ventures between United States and Israeli businesses and academic institutions for the development and commercialization of alternative renewable energy sources.
“American and Israeli ingenuity can be put to work to achieve energy independence from Middle East oil. A sustained investment in research and development is crucial to creating cutting-edge technologies to develop these clean, sustainable alternatives and capitalize on vast renewable natural resources, including solar energy and wind power.
At the recent AIPAC conference the program featured Mr. Andy Karsner Former Assistant Secretary of Energy, Office of Energy Efficiency and Renewable Energy and Mr. Jonathan Baron Founder and Principal, Baron Communications LLC giving a report titled:
Middle East Spotlight – Energy Independence: How National Energy Policy Impacts Our Security
The majority of the world’s oil sits beneath the sands of unstable nations and under the control of hostile authoritarian leaders. Is there still an American appetite for energy independence? If so, what will it take to achieve, and can such a move secure our nation? [emphasis mine]
Are biofuels really a sensible way for the U.S. to address the “hostility” of Middle Eastern leaders or would it be more in America’s interests to remedy the cause of anger? The biofuels “energy independence” policy offers a grim view of a future so warlike that America’s trade relations with entire, economically significant, regions are shut off. Is this Obama’s “forward looking” vision?
Articles written by Atheo:
January 9, 2012
November 13, 2011
September 19, 2011
March 8, 2011
January 2, 2011
October 10, 2010
July 5, 2010
February 25, 2010
February 7, 2010
January 5, 2010 – Updated February 16, 2010:
December 26, 2009
December 19, 2009
December 4, 2009
September 26, 2010
Posted by aletho |
Author: Atheo, Economics, Malthusian Ideology, Phony Scarcity, Progressive Hypocrite, Supremacism, Social Darwinism, Timeless or most popular, Wars for Israel | Africa, Biofuel, Energy, Human rights, Israel, Middle East, Nancy Pelosi, Obama, Tom Vilsack, United States |
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The promotional material from Big Green Energy, aka Biomass Gas & Electric, presents biomass as “clean, renewable energy”, sustainable and green. The US Department of Energy uses the terms “clean and renewable” when introducing visitors at its website to the topic.
But is it accurate to describe the repeated removal of biomass from agricultural or forested lands as sustainable?
A quick review of some basics on the role of organic matter in soils belies the claim.
To support healthy plant life, soil must contain organic matter, plants don’t thrive on minerals and photosynthesis alone. As organic matter breaks down in soil nitrogen, phosphorus, and sulfur are released. Organic matter is the main source of energy (food) for microorganisms. A higher level of microbial activity at a plant’s root zone increases the rate of nutrient transfer to the plant. As the organic matter decreases in soil so does this biochemical activity. Without organic matter, soil biochemical activity would nearly stop.
In addition to being a storehouse of nutrients, decaying plant matter keeps soil loose, helping soil remain both porous and permeable as well as gaining better water holding capacity. This is not only beneficial to plant growth but is essential for soil stability. Soil becomes more susceptible to erosion of all types as organic matter content is reduced.
The value of returning organic matter to the soil has been well-known to farmers since the earliest days of agriculture. Crop residues and animal waste are tilled back into the soil to promote fertility.
Denny Haldeman of the Dogwood Alliance asserts that there is no documentation of the sustainability of repeated biomass removals on most soil types. Most documentation points to nutrient losses, soil depletion and decreased productivity in just one or two generations.
A cursory search of the Department of Energy website does not reveal that they have given the issue of soil fertility any consideration at all. However the biomass industry is supported by both Federal and State governments through five main advantages: tax credits, subsidies, research, Renewable Portfolio Standards, and preferential pricing afforded to technologies that are labeled “renewable” energy. Without government support, biomass power plants wouldn’t be viable outside of a very limited number of co-generation facilities operating within lumber mills. But under the Sisyphean imperative of “energy independence”, and with generous access to public assistance, the extraction of biomass from our farmlands and public forests is set to have a big impact on land use (or abuse).
In sustainable farming, manure is not “waste”
The creation of an artificial market for agricultural “wastes” harms entire local agricultural economies. In Minnesota, organic farmers are concerned that a proposed turkey waste incinerator will drive up the price of poultry manure by burning nearly half of the state’s supply. The establishment of biomass power generation will likely make it more difficult for family farms to compete with confined animal feeding operations and will contribute generally to the demise of traditional (sustainable) agricultural practices.
Similar economic damage will occur in the forest products industries. Dedicating acreage to servicing biomass wood burners denies its use for lumber or paper. Ultimately, the consumer will shoulder the loss in the form of higher prices for forest products.
As available sources of forest biomass near the new power plants diminish, clear-cutting and conversion of native forests into biomass plantations will occur, resulting in the destruction of wildlife habitat. Marginal lands which may not have been previously farmed will be targeted for planting energy crops. These lands frequently have steeper grades, and erosion, sedimentation and flooding will be the inevitable result.
It gets worse.
Municipal solid waste as well as sewage sludge is mixed with the biomass and burned in locations where garbage incineration was traditionally disallowed due to concerns over public health. Dioxins and furans are emitted in copious quantity from these “green” energy plants. Waste incineration is already the largest source of dioxin, the most toxic chemical known. Providing increased waste disposal capacity only adds to the waste problem because it reduces the costs associated with waste generation making recycling that much more uneconomic. In terms of dangerous toxins, land-filling is preferable to incineration. The ash that is left after incineration will be used in fertilizers introducing the dangerous residual heavy metals into the food supply.
In reality biomass fuel isn’t sustainable or “clean”.
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Update February 3, 2011:
In a new study funded by the USDA Agriculture Research Service, scientists simulated experiments lasting from 79 to 134 years. Hero Gollany, the author of the study, summarizes:
“Harvesting substantial amounts of crop residue under current cropping systems without exogenous carbon (e.g., manure) addition would deplete soil organic carbon, exacerbate risks of soil erosion, increase non-point source pollution, degrade soil, reduce crop yields per unit input of fertilizer and water, and decrease agricultural sustainability.”
Update – Summit Voice, April 19, 2012:
Report: Large-scale forest biomass energy not sustainable
Forest biomass questioned as fuel source
SUMMIT COUNTY — Large-scale use of forest biomass for energy production may be unsustainable and is likely to increase greenhouse gas emissions in the long run, according to a new study.
The research was done by the Max-Planck Institute for Biogeochemistry in Germany, Oregon State University, and other universities in Switzerland, Austria and France. The work was supported by several agencies in Europe and the U.S. Department of Energy.
The results show that a significant shift to forest biomass energy production would create a substantial risk of sacrificing forest integrity and sustainability… Full article
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Also by Atheo:
January 9, 2012
November 13, 2011
September 19, 2011
March 8, 2011
January 2, 2011
October 10, 2010
July 5, 2010
February 25, 2010
February 7, 2010
January 5, 2010 – Updated February 16, 2010:
December 19, 2009
December 4, 2009
May 9, 2009
December 23, 2009
Posted by aletho |
Author: Atheo, Deception, Economics, Environmentalism, Malthusian Ideology, Phony Scarcity, Science and Pseudo-Science | Agriculture, Biofuel, Biomass, Energy, Renewable portfolio standard, Soil, Sustainable agriculture, Sustainable energy, United States Department of Agriculture, United States Department of Energy, US Department of Energy |
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