Notice: Undefined index: hide_archive_titles in /home/chesterf/public_html/wp-content/themes/modern-business/includes/theme-functions.php on line 233

Category: Energy

15/12/2024

Nuclear Power

13 December 2024
In the Nuclear power ‘debate’ Dutton is using the exact words of a nuclear power lobbyist who I heard at a Royal Society meeting last year. He says in essence that all the other countries have nuclear, so we need it too, which is silly in that we have far more renewable energy than they do.

So the message is the that Liberals have given in to the nuclear lobby, because of course a couple of nuclear power plants are necessary for the AUKUS submarines, though both Liberal and Labor have been carefully avoiding this fact, as they know that the Australian people currently do not support either nuclear power or AUKUS submarines and they want to get us to accept it all in two bites rather than one.

The hasty inquiry into nuclear energy, which I flagged last month conspicuously did not have the AUKUS submarines mentioned in the their terms of reference despite the fact that in discussions about the AUKUS submarines it was mentioned that Australia will need two nuclear reactors larger than the Lucas Heights one, and a lot more trained nuclear scientists and technicians. Labor just wants the Committee to find nuclear electricity unnecessary and criticise the Liberals.

The sad reality of our two party duopoly is that when one side is voted out, the other comes in with all the policies it wants to bring in. So if you dump Albanese because he did not do much and you think Dutton can help (not a view I support), you get nuclear whether you wanted it or not.

In countries such as Germany , where Winston Churchill wrote the constitution so that no single party could ever get a majority, they have to get coalitions so that each issue has to get considered on its merits. It is not a winner takes all and gives all the policies of whichever lobby group has been successful lately. It seems that the Teals are the only hope; the thin Teal line holding democracy

23/05/2024

EV Batteries are the Answer to Australia’s Electricity Storage Problem

23 May 2024

Everyday we hear about Australia’s energy problem. The government wants to be re-elected because it gave the electricity companies $300 for each of us to offset our power bills.

Less than a fortnight ago, the Government announced a new gas strategy. Gas had to be a ‘transition fuel’ because we could not transition to renewables fast enough. Fracking with its associated damage to the rock strata, environment and greenhouse gas targets notwithstanding Last week the Liberals announced a nuclear future. This week Erarang coal fired power station closure has to be delayed. And, hey rooftop solar is too much in the day time, so owners will have to pay to have the power taken off their hands as grid prices go negative.

Meanwhile it costs $50,000 to buy an EV in Australia, despite the fact that China has an EV overproduction problem and BYD can produce a model called a Seagull for $US10,000 (about $A15,000). An EV has a battery that stores about 50 kilowatt hours, whereas the average home battery is less than 10kWh. The spot price of electricity varies and it would be easy to charge the EVs on solar in the daytime and use their batteries to power the houses in the evenings. Why does this not happen? It does require standard plugs and meters that would allow electricity to move from the car to the grid. Electricity already goes from the grid to the cars- it just has to be able to be reversed.

Why has this not happened? The small number of electricity suppliers, who are arguably gaming the system by withholding supply at critical times to raise prices, do not want supply diversified. They are building solar as fast as they can and wanting to control the solar input. They even offer to put solar on your roof as long as they can control when it is used. If individual households could store solar in their EVs, and either use it or sell it into the grid at peak times, this would directly cut into their oligopoly profits. Why does the government not have the courage to take them on? Probably because solar owners and people who want to profit from the EV batteries in their cars have not made enough noise to make it a political issue.

So lets shout:

‘We want cheap EVs and we want to be able to use their batteries to store power for Australia, lessen greenhouse gases and make some money at the same tim.

When do we want it- NOW!’

07/03/2024

AUKUS- time to make a RUcKUS

6 February 2024

The decision to buy Australia nuclear submarines was one of the worst military decisions ever taken in Australia, not to mention the opportunity cost of $360 billion in terms of the useful things it could do to improve Australian society.

Nick Deane of the Marrickville Peace Group punches well above his weight because of the dire state of peace activism in Australia. He writes excellent material in a very understudied area.

He makes the point that a few submarines cannot defend Australia if it were in danger of a serious attack. But of course that much money could buy a lot of other military material, so we are actually a lot weaker for having the subs.

The other reason given is ‘deterrence’. Presumably this relates to China, but given the huge arsenal the US already has, whether a few submarines are Australian-flagged or US-flagged will not change their thinking one iota. China is a power that is going to rise whether we like it or not, their current economic problems notwithstanding. Anwar Ibrahim, the excellent Malaysian Prime Minister has pointed this out at the ASEAN meeting in Melbourne.

We are not going to stop China’s rise and we should try to get the US to accommodate this as they will not be able to stop it either. We should simply deal with China as a trading partner, not sell them our strategic assets and get a fair price for our wares. Their interest in the Eurasian continental mass will be far greater than invading a farm and a quarry of far less economic significance.

My own view is that it quite dubious whether a nuclear submarine will be of any use in any case. The battleships that fought in WW1 were rendered totally obsolete by their vulnerability to seaplane attacks in WW2. Submarines can currently hide because changes in water temperature make them hard to detect. Conventional submarines get found when they come up for air, but nuclear submarines can stay submerged for very long periods. But nuclear submarines produce a lot of hot water from their reactors, which they cannot turn off. If they stay in the same place quite a plume of hot water goes up from them. It is hard to believe that satellites will not be able to notice this temperature difference. The Russian Black Sea fleet is being sunk by numerous relatively cheap drones, and it is difficult to believe that a pattern of surface drones guided by a satellite would not be able to locate and then destroy a submarine twenty years hence.

The UK wants to sell us submarines and wants to lock us in on their side in a confrontation with China. But the US has other objectives. Apart from selling us submarines at vast profit, we will have to have a base capable of supporting them. Then they will be able to use that base, presumably at minimal cost, so we are locked into having US nuclear warships in our ports at our cost and becoming targets for China in the confrontation.

The pro-nuclear lobby has also pointed out that Australia will also have to hugely expand our nuclear knowledge capability with at least another reactor larger than our modest one at Lucas Heights. We cannot just have submarines and not be able to operate and maintain them.

The defence procurement has been an a mess for years, one suspects because some of our strategic planners want us to ‘operate seamlessly’ with the US, which assumes that our military policy is in total lockstep with theirs, and other planners want an independent Australian capability, fearing the US under Trump might go into isolationism as it did just before both world wars. What do you procure if you have not solved this internal wrangle?

So along comes Morrison whose popularity is sagging just before an election and makes a big decision that allows him to pretend he is a big statesman with a US President and a UK Prime Minister. Photo op a bargain at $360 billion!

Labor, ever-fearful of being criticised by the Liberals for being ‘weak on defence’ (or border security or tax cuts) has just gone along with this. And of course decades of dithering for the reasons above have meant that there is no properly thought out and costed alternative.

We need to recognise that the US will always act in its own interest as it did in delaying its entry to WW1 and WW2 and in selling arms now. We need our own defence policy and to recognise that the US may help us, but only if it has the resources available at the time and there are not other priorities. Once we have a defence policy, we can fix the muddled thinking and get a defence procurement strategy. But we will have to make enough noise to get rid of the AUKUS deal, which will tie up so much money that nothing else will get a look in.

Here is Nick Deane’s article from John Menadue’s Pearls and Irritations:

How did Australia get seduced by AUKUS?

16/12/2023

Power: the 50-25-25 rule

16 December 2023

When I was in Parliament someone said to me that big business had 50% of the power, all governments together 25%, and every other power group 25%.

It seemed a strange concept at first, but on reflection, I think it is about right.

Only after revolutions does it change much and historians argue over for how long.

Senator David Pocock, the Canberra independent, spent a lot of time trying to get the Government to release documents between Santos and themselves about the Barossa gas development in the Timor Sea.

THe reason for this was the Environmental Protection (Sea Dumping) Amendment (Using New Technologies to Fight Climate Change) bill 2023.

Santos is the front partner and 50% owner of the Barossa gas field with SK E&S, a Korean company having 35% and JERA, a Japanese company, 15%. They wanted to develop the largest fossil fuel project in Australia, (natural gas), just when Australia is supposedly getting towards net zero carbon dioxide. Quite apart from the fact that methane burns to carbon dioxide, natural gas, having been formed from the decay of carbon products, is usually found with large amounts of carbon dioxide in with the methane. The Barossa gas is worse than usual at 16-20% carbon dioxide. Santos therefore wanted a permit to separate the carbon dioxide, capture it and store it.

Jennifer Rayner of the Climate Council is one of the many environmentalists who point out that CCS, Carbon Capture and Storage has never been done successfully and is just a fudge to continue fossil fuel use. But it gets worse. When the carbon dioxide is supposedly all captured, it is to be piped to a supposedly exhausted gas field, Bayu-Undan, in East Timor 100 km away and injected into the wells there. What could possibly go wrong? East Timor is not a signatory to the Paris Climate agreement. And if that were not enough, the pipeline to East Timor will not be finished until 5 years after the methane is being shipped, so 5 years worth of carbon dioxide waste is simply to be exhausted to the atmosphere.

All thai was pointed out in Parliament by Pocock and the Greens. There is a carbon offset scheme, where Australian Carbon Offset Units (ACCUs) could be bought, but estimates have been that not enough of these could possibly be created to offset the amount of gas produced by projects currently in the pipeline and the price of ACCUs would rise. The Sea Dumping bill was passed with support from the Coalition. The Greens and Pocock held out, unsuccessfully.

The government resisted releasing the Santos correspondence until after the bill was passed and the correspondence said that Santos’ decisions had already been made and considerable investments undertaken and it would upset the Korean and the Japanese investors if the project were stopped or delayed. It seems that the Koreans and Japanese pressured Penny Wong and the Foreign Affairs Ministry and overcame Chris Bowen and the Environment Ministry. .

All this happened at the same time as the COP28 (28th Conference of the Parties of the 1992 Agreement)in the UAE (United Arab Emirates). UAE is the second largest economy in the Middle East after Saudi Arabia and exports 3 million barrels of oil a day. The president of the COP meeting was Dr Sultan Ahmed Al Jaber, who is also Minister of Industry of the UAE and head of the Abi Dhabi National Oil Company. How anyone could have expected a resolution to phase out fossil fuels to come from a meeting so constituted defies understanding. The whole setting seemed beyond satire. The final text, which seems very hard to get actually agrees to phase down fossil fuels but gives no timetable and allows gas as a transition fuel, which is effectively a loophole to increase gas production.

Environment Minister Chris Bowen said that it was ‘no small thing’ to agree to ‘transition away’ from fossil fuels. But what is all this worth with no timetable and no commitment to phase them out?

Pocock is an ex-Rugby player. My local rugby club has the motto ‘Facta non Verba’= ‘Deeds not Words’ and Pocock is true to the breed.

He said ‘As a country we’ve got to make the choice. Do we put our futures and the ..future..ahead of the short-term profits of a handful of companies like Santos?’

The answer it seems is ‘Yes’. Santos tells the Labor government what to do, and the Labor government does it. The Liberals opposed initially as they usually oppose everything, but when they found out about what Santos and the Japanese and Koreans wanted they quickly came on board.

The rule about 50-25-25 seems to hold good. 50% quickly became 75%, then 100%.

It is very hot today, and summer is not yet here. It would be nice to think that next year will be better, but it won’t, maybe ever…

Here is the story in The Saturday Paper. You might wonder why it is not in the other papers.

www.thesaturdaypaper.com.au/news/environment/2023/12/16/emails-reveal-labor-caved-santos#mtr

23/11/2023

Climate Change- a Depressing Update

23 November 2023

In Australia the Labor government struggles mightily to get legislation through to allow Woodside to pipe carbon dioxide to East Timor’s territorial waters for supposed CCS (Carbon Capture and Storage) to allow them to develop a new gas field. East Timor is not a signatory to the Paris Accord- convenient eh? Supposedly the carbon dioxide will be pumped into a reservoir that used to have gas, but Woodside has a track record of not meeting its CCS targets; if you think CCS is a real thing and not a cop-out farce.

Evidence suggests that the world is on target for a 3 degrees temperature rise, which may make human life unsustainable in its present form. Petrostates are installing lights at beaches so that people can go for a night swim to cool off because it is too hot in the daytime!

The graphs below show world energy consumption tripling since 2000 and continuing that upward trajectory. If one considers that the production of energy by a human is about a kilowatt a day, one realises that the amount of energy consumed now per person is many times that, and far higher in developed countries, the situation is unsustainable. The invention of the steam engine in 1690 and the internal combustion engine in 1872 and the use of fossil fuels, which has resulted in the energy and carbon dioxide stored as carbon over tens of thousands of years being released in a century. It is ridiculous to think that reforestation can capture this amount of carbon as the total area of forests in the world is still declining.

COP28 (the 28th Conference of the Parties) of the UN Framework Convention on Climate Change (UNFCCC), will start on 30 November in the United Arab Emirates (UAE), chaired by Sultan Al Jaber, the CEO of the UAE state oil company ADNOC. How much good is this likely to do?

COP-out: Why the petrostate-hosted climate talkfest will fail

31/03/2023

UN Security Council Rejects an Investigation into Nordstream Pipeline Sabotage

29 March 2023

On 27 March the UN Security Council rejected a Russian motion to have a UN investigation into the sabotage of the Nordstream pipelines on 22 September 2022.

Interestingly there were 3 votes in favour, Brazil, Russia and China and 12 Abstentions. No votes against! The abstentions were from the US, UK, France, Gabon, Switzerland, Ghana, Ecuador, Malta, Japan, Albania and the United Arab Emirates. The reason mostly given for the abstentions was that there are already investigations going on by Germany, Denmark and Sweden.

China’s representative pointed out that the UN investigation could encompass and cooperate with all these, and that blocking the Council from launching and investigation only raises suspicions that ‘something is being hidden’. He tactfully did not say that any national investigation would have to be filtered through that country’s foreign policy considerations.

Of course, the elephant in the room was the report published on February 8 by renowned journalist Seymour Hersh which claims that U.S. President Joe Biden and his senior White House staff ordered the Pentagon to take out the natural gas pipeline that runs along the Baltic Sea bed from Russia to Germany.

https://press.un.org/en/2023/sc15243.doc.htm

26/11/2022

The IR Bill- two problems and a suggestion

25 November 2022

When I buy petrol, I sometimes ask the attendant how much he or she is paid. Often they glance at the CCTV camera and say that they cannot answer that. But the other morning early I asked an attendant who looked like a very tired student from the Indian subcontinent. Yes, she had worked all night, a 12 hour shift for $10/hour cash. I asked her how she thought she might get a decent wage. She replied, ‘Well, an Australian boss might help’. I took this to mean someone who paid an award wage.

As small business tries hard to exempt itself from ‘sector-wide’ bargaining, I wondered how she will fare if there is still no industry-wide award or no enforcement. What will change?

I have a friend who runs a small business and he says that although wages have not risen, neither have small business profits. I asked why? He said that the supply chain had ‘consolidated’ and took a larger share of the final price. One might note that Deliveroo just left food delivery, Amazon is taking an increased percentage of online retail sales, Airbnb takes an increasing percentage of accommodation spending, Uber has increased its percentage take from its rides, and Spotify pays very little to those who make their music. It is the Monopoly game in real life, the big get bigger and the frail are pressed to the rail. The view that the biggest problem small business has is big business seems a neglected truism. The question is whether this will or indeed can be addressed by Federal Parliament. The point is that competition drives down prices, but cartels and oligopolies develop if not stopped. A new book looks at this problem, Chokepoint Capitalism www.thesaturdaypaper.com.au/culture/books/2022/11/30/chokepoint-capitalism#mtr

Another aspect is that the system seems totally unable to restrain is the salaries of top executives. One person I know advised, ‘I always vote against the management salary increases at the AGM’. There is legislation that salary rises have to be approved by the shareholders, but it seems that the top executives always have enough proxies to ensure that they salary rises come despite the efforts of small shareholders like my friend. So I suggest legislation that stipulates that no executive may get more money than, say, 20 times the full time equivalent hourly rate of the lowest paid person in the organisation. It seems that a few hundred thousand at the top does not matter, but a few dollars at the bottom do. This needs to brought into perspective.

24/11/2022

Australia’s Role in the COP 27 Farce in Egypt.

24 November 2022

It seems that there is a growing view that gas is part of decarbonising the world to save it from Climate Change. The term ‘Climate Change’ is itself a euphemism for ‘Global Warming’ as the latter is a bit more threatening, like we have ‘new prices’ rather than ‘price rises’.

Natural gas is largely methane, which is carbon and hydrogen and burns to carbon dioxide and water. But methane is itself also a greenhouse gas, far more potent than carbon dioxide in terms of its warming effects, and quite a lot of it escapes into the atmosphere unburnt, especially if it is released by fracking. One may remember Jeremy Buckingham’s videos of him lighting the gas coming out of the river in Grafton. Carbon Capture and Storage or CCS is a bad joke, with the fossil fuel industry getting grants to research this. My view it is merely a tactic to play for time, like the search for the ‘safe cigarette’. It allows them to keep doing what they are doing, as regulators hope for a technofix.

The fossil fuel industry was in Egypt and seems did quite well, getting agreements to cut down on coal, but not gas and oil. And Australia’s approval for more gas was not criticised here, presumably because Europe is in such a mess with no Russian gas that they had become dependent on.

The cost of extracting gas has not changed, but Australia’s gas companies can just charge the world’s prices and can pocket the extra margin, known in economics as ‘super normal profits’. It might be noted that silly Liz Truss in the UK was going to subsidise gas for the people, i.e. simply give the extra profits to the gas companies by creating a taxpayer debt; a Tory idea of ‘welfare’. In Australia we just let the money go from consumers to the companies with few royalties. Norway and Qatar benefit from their resources- we don’t.

It seems that the COP meeting in Egypt was overshadowed by the G20 and the ASEAN meetings, but it is also likely that Egypt was leaned on by its affluent neighbours, the Middle East fossil fuel producers.

Here is a summary- it is not encouraging. The much-praised Albanese government has not done enough!

COP27: Australia promotes fossil fuels as pathway to carbon neutrality

01/11/2022

Want to know about high energy prices?

4 September 2022

It is about market failure. When public power utilities were privatised a market was set up and power producers could bid into a market to supply at a certain price for each period of time. But obviously if someone bid in at a low price for part of the market, they would then watch as others bid in higher and made more money. So the price to all producers was set at the last bid, so the cheap producers made a lot of money.

There were a few problems. The amount of electricity needed varies widely. Coal fired power is not very flexible-it needs a constant load, cannot be stopped and can vary its output only slowly and within a limited range. When renewables came, solar is only in the daytime, and wind varies, so the system had a problem with ‘stability’- the ability to dispatch power when it was needed.

Another problem was rorting, though no one wanted to talk about this. There were big players who could withhold power so that there was a shortage; the price went up, and then they all cashed in. ‘Imperfect competition’ as economists would call it. No one wanted to build coal plants and there was not enough storage to let renewable energy last overnight or for dull or windless days. So the Morrison government said that gas was a ‘transition fuel’ and more gas plants would be built.

Meanwhile the Australian gas industry agreed to massive export contracts on the assumption that they could frack Australia as the US had been fracked. But the environmentalists realised the harm this did and resisted. So our price of gas went up. So the companies pressured the Albanese government, which is now breaking its election promises and approving fracking. Sorry environment- what is a bit of permanently polluted groundwater and desertification between friends?

Of course years ago, publicly owned utilities run by professional engineers were charged with providing electricity and gas to the public on a non-profit basis. They charged enough to cover their costs with some money for maintenance and future planning. The price was the average price of generation, not the most expensive component. The model worked quite well and could again. The change to a ‘market’ was ideological.

At an international level, the problem is similar, but it all being blamed on Russia, which is only partly true. Naturally in a globalised world, we are also affected by the European gas market, but less directly, especially if we frack to get out of it; which is a very bad solution, substituting a long-term problem for a short-term one.

Here is an international article:

https://eand.co/this-is-why-your-energy-bills-are-going-through-the-roof-cc99e2a59d12

26/10/2022

Electric Vehicles: How helpful are they for Climate Change?

5 June 2020

There are claims and counter claims for how much electric vehicles (EVs) improve the greenhouse gas situation. The production of batteries is quite energy-intensive, so a large battery car takes about twice as much energy to produce as a normal Internal Combustion Engine (ICE) car.

The ‘payback’ time for that extra energy is about 2 years based on the number of km an average (UK) driver does per year.

But the key variable is how the electricity is generated, both in making the battery and in running the car. If it is made in Asia with coal fired electricity to manufacture the car and then charged with coal powered electricity, there is very little benefit. If the battery is produced by renewable electricity and the car charged with renewable electricity, the savings are more than two thirds by 150,000km.

If you keep your old ICE car for 4 years, it will have produced about the same amount of greenhouse gas as it takes to produce a new electric car. Looked at it the other way, it takes 4 years for a new electric car to pay for itself from an emissions point of view as against paying just for the petrol of an existing ICE car.

www.carbonbrief.org/factcheck-how-electric-vehicles-help-to-tackle-climate-change