The Bullroarer - Friday 9th May 2008

The Age - Money pours into oil and gas fields

INVESTMENT in Victoria's oil and gas industry continues to boom, with the Esso/BHP Billiton joint venture in Bass Strait working towards giving a $1.1 billion go-ahead for the second stage development of the Turrum oil and gas field in early June.

NZ Herald - Fuel retailer Gull warns it could exit NZ

Independent fuel retailer Gull is warning that the Government's proposed emissions trading scheme could hurt its profits to the point where it reconsiders operating in New Zealand.

The Age - Bright solar power plan has dark side

THE State Government announced this week that Victoria would join Queensland and South Australia in offering an incentive for people to install solar power panels. Under the "feed-in" tariff for solar power, home owners will be paid more than three times the retail price for each kilowatt-hour of electricity fed into the grid from a rooftop solar power system.
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But while all international feed-in tariffs are paid on the entire production from the chosen renewable energy source, Victoria, like the other states, is offering to pay home owners only for the electricity exported to the grid after what is consumed in the home.

This raises serious concerns about equity issues and the ability of these schemes to produce the desired levels of renewable energy take-up.

NZ Herald - Renewable energy 'cheaper than gas-fired plants'

Investment in renewable generation, especially geothermal and wind power, is already a better economic proposition than gas-fired plant, so a ban on the latter is not needed, Contact Energy says.

Its public affairs manager Bruce Parkes, appearing before the finance and expenditure select committee yesterday, said that also appeared to be the view of the sharemarket. Contact's share price had risen when it announced it was going to concentrate its investment on renewables and had shelved plans for another gas-fired plant at Otahuhu.

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"Renewables are by far the most economic proposition, especially geothermal. But the cost of wind and baseload gas is roughly equal with a carbon price of $23 and gas at $7 a petajoule, which is around the current price." But the upside risks were much greater for gas, he said.

News.com.au - Stressed homeowners raiding super

HOMEOWNERS making a final desperate grab to save their homes from repossession are raiding their superannuation at an alarming rate, new figures show.

More than $175 million was released from super funds last year to help homeowners pay their mortgages.

NineMSN - Inflation threat to world economy, IMF says

Global inflation has re-emerged as a major threat to the world economy, the International Monetary Fund said on Thursday in a stark warning that marked an abrupt change of tone from its emphasis on the risks to growth.

John Lipsky, IMF deputy managing director, said "inflation concerns have resurfaced after years of quiescence" due to soaring energy and food prices.

ABC - Low-carb cars

Rising oil prices and greenhouse gas emissions are pushing us to look at our motor vehicle use. But what are the alternatives and will they work in Australia?

Herald Sun - Oil a mining giant's crown jewel

RIO Tinto might or might not be worth breaking up. But it would be commercial recklessness bordering on insanity to take the oil and gas business out of BHP Billiton.
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When the old BHP went into the oil business in the 1960s, when the newer BHP flirted with spinning or selling it off in the late 1990s, nobody - and I mean nobody - saw China coming.

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As the BHPB presentation showed, China has been responsible for 42 per cent of the entire world's energy demand growth so far this century. And more than 36 per cent of the growth in global consumption of oil specifically.

And my nomination for the shortest-sighted project of the year (and I'm sure we all agree that it had some pretty stiff competition) is the notion that we should turn electricity into water:
Herald Sun - Desalination plant deal grows

THE public-private partnership to build the $3.1 billion Wonthaggi desalination plant will be extended to include supply of power, pipeline maintenance and operation, and the purchase of renewable energy offsets.

Live News - NZ Sliding Into Recession

In March New Zealand Finance Minister Michael Cullen and the Bank of New Zealand forecast a possible recession.

Mr Cullen said he couldn't rule out the possibility of a recession this year, while BNZ said the probability of two consecutive quarters of the economy going backwards - the classic definition of recession - was better than 50%, but it still expected economic growth of 1.4% for the year.

Science Alert - Bio-gas? China-size it

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You could open Pandora’s Box when explaining how oil dependant the farming, transport and processed food production industries are. Increased transportation costs to move food stuffs from field, to factory to your plate. Fertiliser and pesticide rely on natural gas and oil based chemicals for production, and farm machinery is run on liquid fossil fuels. The simplest equation is: higher crude oil prices = higher food costs.

China began using biogas digesters in earnest in 1958 in a campaign to exploit the multiple functions of biogas production, which solved the problem of the disposal of manure and improved hygiene.

Stuff.co.nz - Leay casts shadow on economy

Nelson entrepreneur Barrie Leay cast a foreboding shadow on the future of the Nelson economy at a luncheon in Nelson on Wednesday, but tempered it with a statement that we are now living in the most exciting time in history.
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He said the biggest problem facing humanity was the global shortage of water, but the planet was running into an energy crisis because "we have been using oil like it would never end".

Maybe a Kiwi can explain this one to me?
Scoop.co.nz - Octafuel Launches Hybrid Fuel System

Octafuel Launches Hybrid Fuel System To Fit 99.9% Of All Vehicles – Claims Of 30% Saving On Fuel Costs Good News For Motorists.

OctaFuel announced it officially launches in New Zealand on 1 June 2008 – which is welcome news to motorists of almost every type, given that OctaFuel’s new Retro-fitted Hybrid Fuel Cell technology fits 99.9% of all petrol and diesel vehicles, says Nick Conaglen, one of the co-founders of OctaFuel – and co-founder of other innovative New Zealand Start-up’s like One Hundred Dollars Cash and Invoice Advance New Zealand.

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The OctaFuel Hybrid Fuel System – which utilises proven technology that is growing increasingly popular among thousands of motorists in countries like Australia and Canada – converts excess vehicle heat and energy to Hydrogen – a gas. The gas produced provides up to 40% of a vehicle’s fuel needs.

The Age - Icon in talks to develop coal bed assets

Junior explorer Icon Energy Ltd says the company is in discussions with a number of parties about the development of its coal bed methane assets in Queensland.

Media Release, Tasmanian Goverment - New Phase in Tasmanian Oil and Gas Exploration

The Minister for Energy and Resources, David Llewellyn, has welcomed an announcement from Empire Energy Corporation, through its wholly owned subsidiary Great South Land Minerals (GSLM), of the company’s intention to pursue the next phase in the onshore search for oil and gas in the Tasmania Basin.

Mr Llewellyn has been advised that the company intends to submit the necessary applications to commence a drilling program in July this year, initially involving three wells at Bracknell, Tunbridge and Bellevue.

The proposed drilling program would involve up to eight (8) wells costing $31 million over the next year to test the petroleum systems of onshore Tasmania.

That Tassie oil strike will be a bitter pill for the tankers of poppyseed biodiesel as they drive past.

The export-only feed-in PV tariff is still paid for by battlers who don't have panels ie a tax on the poor and an investment copout by powercos.

I've tried making biogas and it's a lot of work for poor results. Not since my student days have I lived with pigs so I hope they don't want us to go back to that.

Great news that using brown coal for Vic desal won't cause GHGs. They have offsets.

I've tried making biogas and it's a lot of work for poor results.

Yep. I created an anaerobic digester for our household waste. It made enough biogas to create a small "pop".

Great news that using brown coal for Vic desal won't cause GHGs. They have offsets.

What a relief. And here was me thinking it might be a bad idea...

Are offsets the Indulgences of the fossil fuel age?

Are you a sinner? Have you sinned recently? Try here for all your Indulgences needs.

I liked CheatNeutral,

When you cheat on your partner you add to the heartbreak, pain and jealousy in the atmosphere.

Cheatneutral offsets your cheating by funding someone else to be faithful and NOT cheat. This neutralises the pain and unhappy emotion and leaves you with a clear conscience.

Cheatneutral is a gem!

BTW Gav, the NZ OctaFuel Hybrid Fuel Cell sounds like a real find! Looking into it further, it appears to me that the main input is low-quality hydrocarbons in the form of NZ Polymer Banknotes... and the only output is hot air!
http://www.businesssale.co.nz/1408/own-an-octafuel-franchise--youll-be-f...

RE Biogas? China size it

By the end of 2006, the total number of families that use biogas reached 22 million, with a total annual biogas production of about 8.5 billion cubic meters. There were biogas pits built for 22 million households in rural areas, and more than 5,200 large and mid-sized biogas projects based around livestock and poultry farms. The typical eight cubic meter biogas pits are able to provide 80 per cent of the cooking energy for a four-member family according to The Energy and Zoology Division inside the Ministry of Agriculture. By 2020, about 300 million rural people will use biogas as their main fuel.

China is developing 2,200 power grid biogas engineering projects for wastes from intensive animal husbandry and poultry, treating more than 60 million tonnes of manure a year, that’s in addition to the 137,000 installed digesters to treat sewage.

Less sneer more cheer, please. ;-)

Were your biogas pits 8 m3?
Obviously it can be done and China, for all it's coal use, is at least trying something... 22 million 4 member families!
These are not insignificant numbers.

I used an 80L reactor (ie .08 m^3) filled with lawn clippings, water and cow manure. The gas was bubbled to an upside down drum floating in water. That created mild pressure (less than 2 bar I suspect) to send the gas to burners when the valve was opened. I will say that the muck cleaned out of the digester was an excellent plant food. A good job for 'guest workers'.

I think those landfills, dairies and sewage farms who can exploit biomethane are already doing it. If food production becomes localised then waste recycling will be essential for nutrients (ie NPK) with methane as a secondary consideration. This is clearly not something that most people want to do. Unlike coalfired electricity it's up close and personal, not out of sight, out of mind. The suburban lifestyle is dedicated to being clean, dry and odour free.

I'd be very surprised if all Australian landfills are using biogas right now.

While I don't think biogas has a future for individual suburban dwellings, I think it would work fine for rural properties of sufficient size.

And I think all municipal waste should be separated into organic and non-organic streams - use the organic stuff for producing biogas and fertiliser, recycle the rest.

Again, I'd be very surprised if more than a small fraction of local councils do this (worldwide) do this thoroughly and effectively.

No Bullroarer this weekend but I'll post a few articles here - first off from the SMH :

http://www.smh.com.au/news/environment/another-big-dry-forecast-for-irri...

ANOTHER devastating year is on the cards for many irrigators in the Murray-Darling Basin.

Autumn has seen a return to near-record low inflows and history has proved that a dry autumn usually means the rest of the year will be dry.

Although a La Nina weather pattern brought sometimes flooding rains to parts of NSW and Queensland over summer, the head of the Bureau of Meteorology's National Climate Centre, Michael Coughlan, warned yesterday that eastern Australia was drifting back towards an El Nino, where dry conditions dominate.

It was unlikely farmers would see the extensive rains needed to cancel out the deficiencies of the past six drought years and refill the dams, he said, particularly in the southern half of the basin.

In the autumn of 1989 a La Nina delivered an average of 267 millimetres of rain across the basin, but so far this autumn there has been an average of about 30 millimetres. "There's something going on - the fact that we had a La Nina but we are just not getting the turnaround in rainfall that's associated with La Nina," Dr Coughlan said.

The driest autumn on record across the basin was 1902, with 28 millimetres.

Wendy Craik, the chief executive officer of the Murray Darling Basin Commission, said data suggested that climate change had beset the southern basin far sooner than forecast and greatly reduced inflows could be a permanent state of affairs due to consistent lower autumn rainfall.

In the Snowy Mountains, dams are around their lowest levels since construction and the State Government has given Snowy Hydro permission to expand its cloud-seeding program designed to increase snowfall and inflows to water storages.

Another one, this time from frogblog on "Michael Moore, Peak Oil And Food" :

http://blog.greens.org.nz/index.php/2008/05/08/michael-moore-peak-oil-an...

Here are two quick videos. First up every Neo-Con’s favourite documentary maker, Michael Moore, suggestis to Larry King that the real danger from peak oil is not its impact on energy but its impact on food production.

Then this one on both food miles and the oil that goes into into growing food. Both videos are American but sadly entirely relevant here too.

The Courier Mail reports that a 120 MW wind power facility will be constructed in Queensland (not the windiest of places) with more to come.

AS Kevin Rudd touched down in Bali to sign up to a global fight against climate change, he set a new clean energy industry up for take-off in Queensland. The same day, a senior executive of IFE Engineering, one of Germany's biggest renewable energy investors, flew into Brisbane where talks led to a plan to build a $250 million north Queensland wind energy plant that could power a city the size of Cairns. ...

"The Rudd Government's election and Kyoto Protocol signing gave us the confidence to move forward," says Edwin Cywinski, managing director of eco-Kinetics, a Gold Coast-based renewable energy firm part-owned by IFE.

German firm IFE has signed a letter of intent with Wind Power Queensland, the Brisbane-based company of meteorologist Lloyd Stumer, to build within about two years a 120 megawatt, 60-turbine wind farm at Archer Point, 15km south of Cooktown. Stumer says the 2300ha site is buffeted by southeast trade winds that make it the best – but not the only – wind power prospect in Queensland.

Cywinski says Germany's largest bank, Deutsche Bank, and Aktiva Group, a major European renewable energy sector investor, wish to join IFE and WPQ in the Archer Point wind farm. He says the group is already mulling stage-two expansion and additional Queensland wind farm sites.

"We hope to complete due diligence (on Archer Point) in the next two months, then get on with it. We see potential for a stage two, adding a further 60MW on the site, and are looking at further opportunities in Queensland and elsewhere," Cywinski says. ...

The German companies planning to help build Queensland's first large-scale wind farm are part of a domestic industry that is a world leader, with capacity of about 22,200MW or almost twice Queensland's entire power grid capacity of about 11,400MW.

Queensland has a meagre 12MW of installed wind energy capacity and is relying on its coal and gas resources for future needs. But gas and coal-fired power are both polluters. ...

Wind power has been criticised, largely by coal industry defenders, as too unreliable to form a viable and sizeable part of a power grid. But University of NSW environmental studies institute's Mark Diesendorf says total output isn't intermittent from a large-scale wind farm where wind turbines are spread over a large area.

He says the reliability of a large-scale wind farm can be upgraded to that of a coal-fired power station by adding "a few" gas-powered turbines into its system. But this is only needed when there is a big reliance on wind power or 10 per cent or more of total power supply.

"Detailed studies in Britain, with data from 60 sites spanning 30 years, show that if you have large-scale wind farms over a large area it is a reliable power source. The criticism that wind power can't be a reliable power source just isn't valid," Dr Diesendorf says.

Queensland's energy ministry describes renewable energy, or non-polluting energy forms that harness limitless power sources such as wind, solar and tidal power, as an emerging technology. Some are well established within Australia.

South Australian government spokesman Rik Morris says that state will see 20 per cent of its electricity generated from renewables – mainly wind farms – either this year or next year.

SA has 388MW of installed wind energy capacity and that will more than double by the end of 2009. An extra 2800MW of wind projects are being developed there. That equates to 32 per cent of Queensland's needs.

SA's total generation from coal, gas and cogen is under 2 GW I believe, making BHP's request for another .7 GW untenable. I mentioned that some SA rellies tried to escape the record March heatwave by going to the beach on Yorke Peninsula next to the 91 MW wind farm there. However it was almost completely becalmed.

I think wind power needs a storage breakthrough not just building more of them.

I don't think more wind is a problem - we need lots more, and coastal SA isn't a bad location for many reasons.

Besides storage, for hot, calm days we also need large scale CSP in SA, NSW, VIC and QLD (WA remains an island so I'll ignore them) and more interconnectors as well.

The MRET should be ratcheted up at 2.5% per year for the next 38 years - that would solve the problem and we'd end up with a good portfolio of renewables as people explored every little niche and built in storage to try to take advantage of peak pricing.