Archive for the ‘Coal’ Category

Reality and distortions in Lima

Wandering the COP20 campus, listening to side events and hearing senior political, business and NGO representatives talk about the climate issue results in a mild reality distortion field impairing your judgement; you start to feel sure that we must already be on a new energy pathway, that global carbon pricing is just around the corner and that the Paris deal will deliver something approaching 2°C.

Then something happens to shatter that field and realisation sets in that there is still a long way to go before a truly robust approach to the climate issue emerges. On Tuesday evening the field was disturbed by tweets from a colleague at PWC @JG_climate reporting on negotiators squabbling over INDCs, with Brazil’s concentric differentiation approach causing some angst amongst a number of developed countries and the proposed text describing the nature of an INDC expanding by some thirty pages. This negotiation is far from over and the road ahead to Paris will likely be very bumpy. There will be a few dead-ends to watch out for as well.

Another reality hit home on Monday afternoon with the recognition that many people in the civil society groups here in Lima just don’t want to hear about the reality of carbon capture and storage (CCS). The Global Carbon Capture and Storage Institute (GCCSI) held an excellent and well attended side event on Monday afternoon which was initially mobbed by some 100+ demonstrators and their press entourage. The demonstrators crowded into the modest sized room and the hallway outside, waited for the start of the event and then promptly left as Lord Stern opened the side event with his remarks on the need for a massive scale-up of CCS. Arriving and then departing en masse allowed them to tweet that civil society had walked out on Lord Stern. The demonstrators were equally upset that Shell was represented at the event with my presentation on yet another sobering reality; 2°C is most likely out of reach without the application of CCS; also a finding of the IPCC in their 5th Assessment Report. They also took exception to flyers for my book which carries the same message.

CCS Event (small)

What was really concerning about this walk-out was that the younger people who made up the group would rather protest than listen and learn. Had they stayed they would have heard a remarkable story by Mike Monea of SaskPower who talked about the very successful start-up of the world’s first commercial scale coal fired power plant operating with carbon capture, use (for EOR) and storage. This technology needs some form of carbon pricing structure for delivery and in the case of this project the bulk of it came from the sale of CO2 for EOR. There was also a capital grant from the government. Importantly, SaskPower noted that a future plant would be both cheaper to build (by some 30%) and less costly to operate. This potentially points the way to a technology that can deliver very low emission base load electricity at considerably lower CO2 prices than the ~$100+ per tonne of CO2 that current desktop studies point to. That may also mean CCS appearing without government support sooner rather than later. Of course, the actual construction and delivery of second generation projects will still be required to confirm this.

A minor reality distortion arose from a question directed at me during the GCCSI side event. One audience member asked me about Shell’s membership of ALEC, a US organisation that operates a nonpartisan public-private partnership of America’s state legislators, members of the private sector and the general public.  ALEC doesn’t seem to think that a carbon price should be implemented in the USA, hence the question to me given Shell support for carbon pricing.  Responding to the Climate correctly reported on my response, which was along the lines of “. . that despite their position  on climate issues we still placed a value on their ability to convene state legislators”, but DeSmogBlog had their own interpretation of this. They reported on this under a headline which stated “Company ‘Values’ Relationship with Climate-Denying ALEC”.

It’s also proving a challenge to gain acceptance for the reality of markets and the role they are likely to have in disseminating a carbon price throughout the energy system. This means that carbon market thinking is still struggling to gain a foothold in text proposals for Paris, with one negotiator commenting at an event I attended that “we don’t see much call for markets at this time“. Silence on markets is the preferred strategy for some Parties, with others taking the view that specific mention and some direction is a must. More on this at another time as the Paris text develops further.

The evenings in Lima have been filled with some excellent events. With so many people in town, dinner discussions are convened by the major organisations represented here, which results in great conversations, useful contacts and plenty of new ideas to think about. The Government of Peru have organised and run a very good COP, despite early concerns that there were initially no buildings on the site they chose for the event.

In a post earlier this year I compared the endless claims around renewable energy to the famous “reality distortion field” (RDF) that was first employed by the Talosians in the original series of Star Trek, but was later linked with the management style of Steve Jobs. The RDF was said to be Steve Jobs’ ability to convince himself and others to believe almost anything with a mix of charm, charisma, bravado, hyperbole, marketing, appeasement and persistence.

It would appear that after the announcement by the USA and China on their emissions agreement, a new reality distortion field is appearing around the subject of Chinese coal use.

It is very clear from all the reports coming from China that there is real concern about the use of coal and its link with the air quality in many major cities. It is also clear that the Chinese government is now starting to address this issue through the management of coal use, including the closure of older more polluting stations, the use of natural gas, the rapid build of nuclear and renewable energy capacity and so on. But coal use is continuing to increase, albeit more slowly than in recent years. While coal use in parts of the country may even decrease in the near term, as rapid development spreads to all corners of China over the next decade energy demand will continue to grow and total coal use will probably follow.

In the excitement around recent announcements, many organisations are now pinning their hopes on Chinese coal use peaking much earlier than the announced 2030 timeframe for a peak in overall emissions. As a result, when a revised energy strategy was announced in China recently, it was widely reported under the effects of the new distortion field.

According to two Chinese news reports that I could find (Xinhuanet and Shanghai Daily), the following is what was apparently announced;

The State Council promised more efficient, self-sufficient, green and innovative energy production and consumption in the Energy Development Strategy Action Plan (2014-2020). It included a cap set on annual primary energy consumption set at 4.8 billion tonnes of the standard coal equivalent until 2020. Annual coal consumption will be held below 4.2 billion tonnes until 2020, 16.3 percent more than the 3.6 billion tonnes burned last year, according to the National Coal Association.

My interpretation of this is that China has outlined its energy consumption goals for the period 2014 to 2020, but said nothing about the post 2020 period. However, this was reported very differently by others who decided to interpret the announcement as a cap on coal use by 2020. For example, the UNFCCC press release said;

The Chinese State Council also announced a new energy strategy action plan that includes ambitious measures to cap national coal consumption as early as 2020 at 4.2 billion tons, and reduce coal’s share of China’s primary energy mix to less than 62 percent by that same year.

The Climate Reality Project even had a small poster made to announce their interpretation of the plan;

China coal

Chinese coal use might peak in the medium term and emissions from coal will certainly have to peak before 2030 because of their announced INDC (national contribution) in-tandem with the announcement by the USA. But even then coal use may continue to grow if carbon capture and storage (CCS) can be successfully deployed at scale.

For me, the big announcement of the week is the proposed creation of a national carbon market to follow the regional trials now underway. Shanghai Daily reported the following;

China will open a nationwide carbon market in 2016 to help the government reduce emissions by 2030, the National Development and Reform Commission yesterday said in Beijing. Su Wei, an official at the climate change department under the NDRC, said he expected the market to be mature by 2020.

A robust and mature carbon market active throughout the 2020s could bring emissions from coal to a rapid standstill and even see them fall through fuel switching to natural gas and the deployment of CCS. Then it will be time to put up a poster.

The Australian Prime Minister, Tony Abbott, turned up in Queensland very recently to open a coal mine (the $US3.4 billion Caval Ridge Mine in Central Queensland, a joint venture between BHP and Mitsubishi which will produce 5.5 million tonnes annually of metallurgical coal and employ about 500 people). In a TV interview he managed to inflame a number of commentators around the world with his quote that “Coal is good for humanity, coal is good for prosperity, coal is an essential part of our economic future, here in Australia, and right around the world . . . . . “.

In this world in which it is difficult for politicians to say anything without getting criticised, he was perhaps in a losing situation before he spoke, simply because of the critical role that coal happens to play in the global economy cast against the reality that its cumulative carbon footprint is the single largest contributor over time to the build-up of CO2 in the atmosphere. More recently, increased coal use has also contributed most to the rapid rise in global emissions.

In one sense Abbott is correct in that over and over again coal has been the starting point for industrial development. I explored this in more depth a few months ago. Coal is an inexpensive fuel, but perhaps most importantly it requires only minimal technology to utilize. There is no need for pipelines, leakage monitoring or sophisticated storage facilities. One could argue that the most important piece of technology is a shovel. This was true in Victorian England, it is still true in parts of China today and it may well be the case as Africa begins to industrialize on a large scale. Of course, the development of Africa on the back of the vast coal resource that sits in that continent (200 billion tonnes in Botswana alone) will send emissions to levels that are hard to contemplate and even more difficult to reduce. That is highly unlikely to be good for humanity.

Contrast this with the latest offering from activist and author Naomi Klein, who has recently published a book on the climate issue; This Changes Everything. I am about a quarter of the way into this and try as I may to be objective, I am already wondering if I will ever finish it. I feel that I have already been vilified a hundred times over, not just as part of the fossil fuel industry that she likens to an evil empire, but also as a shareholder daring to expect a return on my investments (“. . . . pour their profits into shareholder pockets . . .” ). Ms. Klein seems to believe that nothing short of a return to collective ownership, community living, local production and simple lifestyles will be sufficient to reduce carbon dioxide emissions. She blames anybody and everybody for the problem of rising emissions and lands the issue squarely at the feet of the economic system that has served us pretty well for centuries. Apart from her argument for the need to change everything, it looks as if I will have to plough through another 300 pages to find out how she imagines this might actually happen. My guess is that it could be more wishful thinking than practical policy advice. Should I ever get to page 533 (!!) I will let you know, but I don’t know if I have a thick enough skin for that.

One reviewer did manage to make it to the end and his views can be found here.

In the midst of this cacophony of criticism, the rational middle continues on without much of a voice. But some of us are at least trying. My new book, Putting the Genie Back: 2°C will be harder than we think, hasn’t attracted the talk shows or celebrity endorsements yet, but I have at least had some good feedback from readers and that is very gratifying. I wrote it to try and present a more balanced view of the climate issue and it does seem to be succeeding in that regard.

Comparing apples with oranges

The Climate Group has posted an interesting story on its website and has been tweeting a key graph from the piece of work (below) with the attached text saying “From 2000 to 2012, wind and solar energy increased respectively 16-fold and 49-fold”.

Climate Group Image

The story is headed “Wind and Solar Power is Catching up with Nuclear” and argues correctly that the global installed capacity of these two new sources of electricity are catching up with nuclear. Although the article concludes with the sobering reality that actual generation from wind and solar are still just a fraction of that from nuclear, the headline and certainly the tweets are somewhat misleading.

Both wind and solar have very low on-stream factors, something like 30% and 20% respectively in the USA, whereas nuclear is close to 90%. This means that although 1 GW of solar can deliver up to 1 GW of output, this is highly intermittent, needs considerable backup and results in an average output of only 200 MW (with a low of zero half the time). By contrast a 1 GW nuclear power station is on stream most of the time and delivers about 1 GW 24/7 throughout the year. Therefore, comparing solar or wind capacity with nuclear capacity gives little insight into the actual energy being generated, which is really the point of any comparison in the first instance. The global generating picture actually looks like this (Source: BP Statistical Review of World Energy 2014);

Generation by source

Wind, but particularly solar generation are still only a fraction of nuclear generation, even with the global nuclear turndown following Fukushima. Interestingly, both wind and solar are only rising at about the same rate that nuclear did in the 1960s and 1970s, so we might expect another 30+ years before they reach the level that nuclear is at today, at least in terms of actual generation.

The comparison of capacity rather than generation has become a staple of the renewable energy industry. Both coal and nuclear provide base load electricity and have very high on-stream factors. Depending on the national circumstances, natural gas may be base load and therefore also have a high on-stream factor, but in the USA it has been closer to 50% as it is quite often used intermittently to match the variability of renewables and the peaks in demand from customers (e.g. early evenings when people come home from work and cook dinner). This is because of the ease with which natural gas generation can be dispatched into or removed from the grid. However, natural gas is also becoming baseload in some parts of the USA given the price of gas and the closure of older coal plants.

Capacity comparisons look great in that they can make it appear that vast amounts of renewable energy is entering the energy mix when in fact that is not the case, at least not to the extent implied. Renewable energy will undoubtedly have its day, but like nuclear and even fossil fuels before it, a generation or two will likely have to pass before we can note its significant impact and possibly even its eventual dominance in the power sector.

My new book, Putting the Genie Back, goes to some length picking apart the climate issue and then explaining why carbon capture and storage (CCS) is such a critical part of the solution set. It eventually becomes clear when you really think it about and consider three things;

  • The huge scale of the fossil fuel based energy system;
  • The way carbon dioxide accumulates in the atmosphere and;
  • The extraction economics of fossil fuels.

But few of us have the time to really think about an issue such as climate change, let alone read books on the subject or attend seminars, lectures and climate conferences (although quite a few of these don’t mention CCS at all and some barely acknowledge the need for a carbon price). Rather, in this word of social media, 140 character tweets and 24/7 News Channels, we often get just a few minutes to come to terms with a concept and form an opinion. As such, is it possible to explain the role of CCS in such a short amount of time?

With an eye on the UN Climate Summit and then the opportunities in the lead-up to COP21 in Paris, the World Business Council for Sustainable Development (WBCSD) has given it a try. The media they have used is video, working with an exciting graphics company called Carbon Visuals. The challenge was to help the audience understand why CCS is important in just a few minutes, not just by being told so, but by being convinced.

Carbon Visuals focussed on two key aspects of the climate issue, that being the huge scale of fossil fuel use and the way in which CO2 from this use accumulates in the ocean / atmosphere system, with further accumulation likely due to the global fossil resource base still to be extracted to meet energy needs.

The visuals depicting scale are very attention grabbing, to help the viewer recognise that fossil fuel use is highly unlikely to diminish in the near term or even vanish in the longer term. For example, daily global coal use alone buries Midtown East Manhattan.

Coal mountain

This is then contrasted with renewable energy, which while growing very rapidly, isn’t even outpacing the growth in fossil fuel use, let alone forcing it down.

The animation steps up a notch when it comes to depicting CO2, which bursts out of Central Park and literally buries New York as it accumulates. These spheres are something of a Carbon Visuals “trademark”, first appearing in an excellent video they made about New York City emissions.

CO2 pile in NYC

Finally, the animation puts this into perspective in terms of global accumulation and the likelihood of exceeding the trillion tonnes of carbon threshold (and therefore 2°C), unless of course large scale deployment of CCS takes place to mitigate such an outcome. Of course a great deal has to happen for this scale of CCS to be built, starting with more widespread application of carbon pricing.

CCS Animation

You can watch the animation here and look in more detail at the images and thinking behind it here.

A recent story in The Guardian expressed some optimism that “humans will rise to the challenge of climate change”. Ten reasons were given to be hopeful, but not one of them mentioned the climate basics such as a carbon price or carbon capture and storage. Rather, the offerings were largely tangential to the reality of rising CO2 emissions, with the hope that because European homes are using less energy and solar prices are dropping, then ipso facto, atmospheric CO2 levels would somehow stabilize (i.e. annual CO2 emissions falling to zero).  Without wanting to be pessimistic, but rather realistic, it may not be the case that emissions just fall and here are ten reasons why not. For those who visit this blog more regularly, sorry for the repetition, but hopefully this is a useful summary anyway.

1. There is still no carbon price

Although discussions about carbon pricing are widespread and there are large systems in place in the EU and California, pervasive robust pricing will take decades to implement if the current pace is maintained. Yet carbon pricing is pivotal to resolving the issue, as discussed here. The recent Carbon Pricing Statement from the World Bank also makes this point and calls on governments, amongst others, to work towards the goal of a global approach.

2. Legacy infrastructure almost gets us there

The legacy energy system that currently powers the world is built and will more than likely continue to run, with some parts for decades. This includes everything from domestic appliances to cars to huge chemical plants, coal mines and power stations. I have added up what I think is the minimum realistic impact of this legacy and it takes us to something over 800 billion tonnes carbon emitted to the atmosphere, from the current level of about 580 billion tonnes since 1750. Remember that 2°C is roughly equivalent to one trillion tonnes of carbon.

3. Efficiency drives growth and energy use, not the reverse

The proposition that energy efficiency reduces emissions seems to ignore the cumulative nature of carbon emissions and is apparently based on the notion that energy efficiency is somehow separate to growth and economic activity. What is wrong with this is that the counterfactual, i.e. that the economy would have used more energy but grown by the same amount, probably doesn’t exist. Rather, had efficiency measures not been taken then growth would have been lower and energy consumption would have been less as a result. Because efficiency drives economic growth, you have to account for Jevons Paradox (rebound). After all, economies have been getting more efficient since the start of the industrial revolution and emissions have only risen. Why would we now think that being even more efficient would somehow throw this engine into reverse?

4. We still need a global industrial system

In a modern city such as London, surrounded by towns and idyllic countryside with hardly a factory in sight, it’s easy to forget that an industrial behemoth lurks around the corner producing everything we buy, eat, use and trade. This behemoth runs on fossil fuels, both for the energy it needs and the feedstock it requires.

5. Solar optimism

There’s little doubt that solar PV is here to stay, will be very big and will probably be cheap, even with the necessary storage or backup priced in. But it’s going to take a while, perhaps most of this century for that to happen. During that time a great deal of energy will be needed for the global economy and it will come from fossil fuels. We will need to deal with the emissions from this.

6. Developing countries need coal to industrialize

I talked about this in a very recent post – developing countries are likely to employ coal to industrialize, which then locks the economy into this fuel. One way to avoid this is to see much wider use of instruments such as the Clean Development Mechanism, but at prices that make some sense. This then comes back to point 1 above.

7. We focus on what we can do, but that doesn’t mean it’s the best thing to do

Methane emissions are currently attracting a great deal of attention. But cutting methane today and not making similar reductions in CO2 as well means we could still end up at the same level of peak warming later this century. It’s important to cut methane emissions, but not as a proxy for acting on CO2.

8. It’s about cumulative carbon, not emissions in 2050

Much of the misconception about how to solve the climate issue stems from a lack of knowledge about the issue itself. CO2 emissions are talked about on a local basis as we might talk about city air pollution or sulphur emissions from a power plant. These are flow problems in that the issue is solved by reducing the local flow of the pollutant. By contrast, the release of carbon to the atmosphere is a stock problem and the eventual stock in the atmosphere is linked more to the economics of resource extraction rather than it is to local actions in cities and homes. Thinking about the problem from the stock perspective changes the nature of the solution and the approach. One technology in particular becomes pivotal to the issue, carbon capture and storage (CCS).

9. Don’t mention CCS, we’re talking about climate change

Following on from the point above, it’s proving difficult for CCS to gain traction and acceptance. This is not helped by the UN process itself, where CCS doesn’t get much air time. One example was the Abu Dhabi Ascent, a pre-meeting for the upcoming UN Climate Summit. CCS wasn’t even on the agenda.

10. We just aren’t trying hard enough

A new report out from the MIT Joint Program on the Science and Policy of Global Change argues that the expected global agreement on climate change coming from the Paris COP21 in 2015 is unlikely to deliver anything close to a 2°C solution. At best, they see the “contributions” process that is now underway as usefully bending the global trajectory.

The analysis shows that an agreement likely achievable at COP-21 will succeed in a useful bending the curve of global emissions. The likely agreement will not, however, produce global emissions within the window of paths to 2050 that are consistent with frequently proposed climate goals, raising questions about follow-up steps in the development of a climate regime.

Perhaps of even greater concern is the potential that the UNFCCC process has for creating lock-in to a less than adequate policy regime. They note:

Nevertheless, if an agreement is reached in 2015, going into effect by 2020, the earliest review of performance along the way might not be before 2025. In this case, an effort to formulate the next agreement under the Climate Convention, or a tightening of COP-21 agreements, would not start until 2025 or after, with new targets set for a decade or more after that. If this expectation is correct, then global emissions as far out as 2045 or 2050 will be heavily influenced by achievements in the negotiations over the next 18 months.

 

 

While all fossil fuels are contributing to the accumulation of carbon dioxide in the atmosphere, coal stands apart as really problematic, not just because of its CO2 emissions today (see chart, global emissions in millions of tonnes CO2 vs. time), but because of the vast reserves waiting to be used and the tendency for an emerging economy to lock its energy system into it.

Global energy emissions

Global emissions, million tonnes CO2 from 1971 to 2010

I recently came across data relating to the potential coal resource base in just one country, Botswana, which is estimated at some 200 billion tonnes. Current recoverable reserves are of course a fraction of this amount, but just for some perspective, 200 billion tonnes of coal once used would add well over 100 billion tonnes of carbon to the atmosphere and therefore shift the cumulative total from the current 580 billion tonnes carbon to nearly 700 billion tonnes carbon; and that is just from Botswana. Fortunately Botswana has quite a small population and a relatively high GDP per capita so it is unlikely to use vast amounts of this coal for itself, but its emerging neighbours, countries like Zimbabwe, may certainly benefit. This much coal would also take a very long time to extract – even on a global basis it represents over 25 years of use at current levels of production.

This raises the question of whether a country can develop without an accessible resource base of some description, but particularly an energy resource base. A few have done so, notably Japan and perhaps the Netherlands, but many economies have developed by themselves on the back of coal or developed when others arrived and extracted more difficult resources for them, notably oil, gas and minerals. The coal examples are numerous, but start with the likes of Germany, Great Britain, the United States and Australia and include more recent examples such as China, South Africa and India. Of course strong governance and institutional capacity are also required to ensure widespread societal benefit as the resource is extracted.

Coal is a relatively easy resource to tap into and make use of. It requires little technology to get going but offers a great deal, such as electricity, railways (in the early days), heating, industry and very importantly, smelting (e.g. steel making). In the case of Great Britain and the United States coal provided the impetus for the Industrial Revolution. In the case of the latter, very easy to access oil soon followed and mobility flourished, which added enormously to the development of the continent.

But the legacy that this leaves, apart from a wealthy society, is a lock-in of the resource on which the society was built. So much infrastructure is constructed on the back of the resource that it becomes almost impossible to replace or do without, particularly if the resource is still providing value.

As developing economies emerge they too look at resources such as coal. Although natural gas is cleaner and may offer many environmental benefits over coal (including lower CO2 emissions), it requires a much higher level of infrastructure and technology to access and use, so it may not be a natural starting point. It often comes later, but in many instances it has been as well as the coal rather than instead of it. Even in the USA, the recent natural gas boom has not displaced its energy equivalent in coal extraction, rather some of the coal has shifted to the export market.

Enter the Clean Development Mechanism (CDM). The idea here was to jump the coal era and move directly to cleaner fuels or renewable energy by providing the value that the coal would have delivered as a subsidy for more advanced infrastructure. But it hasn’t quite worked that way. With limited buyers of CERs (Certified Emission Reduction units) and therefore limited provision of the necessary subsidy, the focus shifted to smaller scale projects such as rural electricity provision. These are laudable projects, but this doesn’t represent the necessary investment in large scale industrial infrastructure that the country actually needs to develop. Rooftop solar PV won’t build roads, bridges and hospitals or run steel mills and cement plants. So the economy turns to coal anyway.

This is one of the puzzles that will need to be solved for a Paris 2015 agreement to actually start to make a difference. If we can rescue a mechanism such as the CDM and have it feature in a future international agreement, it’s focus, or at least a major part of it, has to shift from small scale development projects to large scale industrial and power generation projects, but still with an emphasis on least developed economies where coal lock-in has yet to occur or is just starting.

Some energy system home truths

One point of note on the annual calendar of energy events is the release by BP of their Statistical Review of World Energy. The data, all available to download in Excel format, covers the period up to the end of the previous year (i.e. the current data is to the end of 2013) and as such is about 18 months ahead of the equivalent data from the IEA (which is currently up to 2011 but will be updated later this year). Just about anything you might want to know on energy supply, energy consumption, CO2 emissions, fossil fuel reserves etc, is there for the interested user. In recent years BP have updated the tables to include a more comprehensive look at renewable energy as well.

The most recent release by BP was just a couple of weeks ago, so here are a few key energy/climate home truths within it;

Global CO2 emissions just keep on rising: This is hardly a surprise, but given the recent burst of capacity from the renewable energy sector there might be some sign of some levelling off at least. OECD emissions are at least flat now, but non-OECD emissions continue to rise sharply as coal use increases in particular (chart below in millions tonnes CO2 per annum).

Global emissions

 

The global CO2 intensity of energy isn’t budging: This is a bit more surprising given the influx of natural gas into the global economy and the build rate of renewables. But coal continues to surge and quite some nuclear has been shut down in Japan. The chart below shows the OECD intensity falling as renewables take off in Europe and natural gas increases in the USA, but non-OECD intensity offsets this to give a flat picture overall (chart below is in tonnes of CO2 per barrel of oil equivalent).

Global CO2 intensity of energy

 

The annual increase in fossil fuel use far exceeds the increase in renewable energy production: While many will readily quote the annual increase in renewable energy investment or annual increase in renewable energy capacity as evidence of turning the corner, the reality in terms of renewable energy produced is somewhat different. The chart below compares the annual coal increase with global solar and wind increases. For reference, the total fossil fuel increase from 2012-2013 was 183 Mtoe (million tonnes oil equivalent). The whole picture is rather distorted by the global financial crisis, but coal alone is increasing by something like 100-150 Mtoe per annum. At least for the last couple of years solar has been flat at about 7 Mtoe annual increase.

Increase in coal use

Solar and wind are growing rapidly, but the fossil fuel share of global primary energy is high and steady: Both solar and wind are in their early rapid growth phase where double digit annual increases are expected, but as they become material in the energy system at around 1% of global energy production, don’t be surprised to see this start to level off. The chart below has a log scale (otherwise solar and wind are barely discernible) and shows fossil fuel up in the mid 80’s as a percent of the global energy mix.

Energy mix fraction

Even in Germany it is taking a while for solar to make a showing: While solar PV in Germany is having a profound impact on electricity generation on long sunny days in June, the annual story when looking at total energy use is different. Solar has reached about 2% of the mix (i.e. reached materiality) and might even be showing some signs of slowing up and growing at a more linear rate (but a few more years data are needed to see the real trend). Again, this is a log chart.

German solar

 

Thanks to BP for the time and effort they put into this work every year.

Selling CCS at a climate conference

As COP 19 rolls on in Warsaw, both delegates and observers that I have talked to are seeing little agreement, despite the sometimes upbeat assessment coming from the UNFCCC. It may well be late on Friday or even Saturday before something appears from this COP.

Meanwhile the side event and external (to the formal COP) conference programmes continue. It is through these processes that participants can meet and discuss various aspects related to climate change. This being a meeting about climate change, it might be expected that attendees would be interested in hearing about carbon capture and storage (CCS), but it turns out this is a hard sell here. The problem seems to start at the COP venue itself, where the meeting room banners feature various approaches to energy and environmental management. CCS doesn’t get a mention.

 COP Banners

All I could find were Energy Efficiency, Renewable Energy Sources, Air Protection and Water & Wastewater Management.

This theme continues in many presentations, speeches, dinner conversations and panel discussions. While CCS does of course feature when organizations such as GCCSI hold events, at more general climate solution events it struggles to hold its own. Rather the focus is solidly on energy efficiency and renewables. Neither of these are anything close to sufficient solutions to the climate problem as it stands today, yet you could sometimes come to the conclusion that this is what the COP is actually about.

Energy efficiency has transformed global industry since the first day of the industrial revolution. Everything we do is possible through a combination of technology innovation and energy efficiency, from power stations to vehicles to mobile phones. The result of this has been tremendous growth, but with it has come a continuous rise in greenhouse gas emissions, particularly CO2. We use more goods and services, buy more stuff and travel further than at any point in human history and there is no apparent let up in this trend as it continues to pervade the entire global economy. But now energy efficiency is being sold as a mechanism for reducing emissions, throwing into reverse a trend that has been with us for over 200 years and fundamentally challenging economic building blocks such as Jevons Paradox. A parade of people representing business organizations, environmental NGOs and multilateral institutions will wax lyrical about energy efficiency. In one presentation an airline industry spokesperson talked about the tremendous improvements in efficiency the industry was making, through engine design, light weighting, route optimization and arrival and departure planning. There is no doubt that this is happening, but it is also bringing cheaper air travel to millions of people and of course forcing up emissions for the industry as a whole. There is no sign of this trend reversing itself. Adding a carbon price to the energy mix is the way to change this trend and still make energy efficiency improvements. 

The renewable energy story is told in a similar way. While there is also no doubt that the application of renewable energy is bringing benefits to many countries, offering distributed energy, providing off-grid electricity and supplementing the global energy supply in a tangible way, the global average CO2 intensity of energy has remained stubbornly the same since the 1980s when it dropped on a relative scale (1990 = 100) from 107 in 1971 to 100 in 1987 (Source: IEA). It was still at 100 in 2011. This is not to say it will never change, but simply advocating for renewable energy is very unlikely to take us to net zero emissions before the end of this century. The fossil fuel base on which the economy rests is also growing as demand for energy grows. As recent IEA World Energy Outlooks have repeatedly shown, much of this new demand is being met with coal. The only way to manage emissions from coal is the application of CCS, yet this seemingly falls on deaf ears here in Warsaw.

When CCS does get a mention, it is increasingly phrased as CCUS, with the “U” standing for “use”. In her one upbeat mention of CCS that I have heard, UNFCCC Executive Secretary also referred to it as CCUS. In another forum, one participant even talked about “commoditizing” CO2 to find a range of new uses. The problem is that CO2 really can’t be used for much of anything, with one modest (compared to the scale of global emissions) but important exception. The largest use today is for enhanced oil recovery where the USA has a mature and growing industry. It was originally built on the back of natural CO2 extracted from the sub-surface, but the industry now pays enough for CO2 that it can provide support to carbon capture at power plants and other facilities (usually with some capital funding from the likes of DOE).  This has helped the US establish a CCS demonstration programme of sorts.

There are other minor industrial gas uses (soft drinks), some scope for vegetable greenhouses such as the Shell project in the Netherlands (which provides refinery CO2 to Rotterdam greenhouses for enhanced growing, rather than have them produce it by burnaing natural gas) and a technology that quickly absorbs CO2 in certain minerals to make a new material for building, but all of these are tiny. The problem is that CO2 is the result of combustion and energy release and therefore any chemistry that turns it into something useful again requires lots of energy – nature does this and uses sunlight. Even if such a step were possible, this wouldn’t change the CO2 balance in the atmosphere, just as any bio process doesn’t change the overall balance in the atmosphere. Only sequestration, either natural or anthropogenic, changes that balance.

What to make of COP 19?

The flight from London to Warsaw this week gave me a chance to flick through the latest World Energy Outlook from the IEA (I couldn’t use the word “read” here as that would barely be possible on a flight to Melbourne, let alone Warsaw) and read a number of articles in the principle introductory publication to COP 19 (Climate Change – The New Economy), which amazingly enough was available in the BA Lounge at Heathrow.

 Climate Change - The New Economy

Further to these publications, UNEP released their 2013 Gap Report on Wednesday afternoon at a side event in the football stadium where the COP is being held (it doubles as a convention centre).

The COP publication contains a series of articles from various stakeholders, all extolling the virtues of one particular technology over another as a means of delivering the needed emission reductions over the coming decades (e.g. efficient lighting!!). But on opening the publication there is a two page advertisement for a much more efficient and clean coal bed methane to liquids process  under the heading “You will be amazed what we can do with coal”, followed by a two page spread from WWF titled “Help Save the Fridge”, with an expansive picture of pack ice in Spitsbergen. This rather sets the scene for the tensions that may well run right through this particular conference.

The document then continues with messages from the Polish Minister for the Environment (the COP President) and Christiana Figueres, Executive Secretary of the UNFCCC. Ms. Figueres’ article outlines with great exuberance how climate change represents “the mother of all opportunities” and goes on to note that more than 30 countries have climate legislation and 100 countries have renewable energy regulations. Of course she needs to be optimistic, how else could anyone face up to the reality of increasing global coal use and the task of delivering a deal that needs to bring global emissions to somewhere near zero later this century.

The contrast between these realities is highlighted by the UNEP Gap Report and the IEA World Energy Outlook. The Gap Report clearly recognizes that current national actions will not put us on a trajectory that looks anything like 2°C, but it then outlines a wide range of actions that UNEP claim could potentially be taken to reverse this trend. Although the Gap Report notes that timing is now very tight, it nevertheless goes on to outline reduction potentials across all the major emitting sectors (including agriculture) that add up to 17 GtCO2e per annum (middle of the range) below “business as usual” in just six years. This would take us well below current emissions and reverse a trend, almost overnight, that has been a reality for over 200 years.

 Bridge the GAP

 

The IEA also present a 450 ppm scenario, as they always have, but perhaps a more realistic scenario is their New Policies case. This scenario assumes the continuation of existing policies and measures (like the ETS in Australia !!!) as well as cautious implementation of policies that have been announced by governments but are yet to come into effect (e.g. the ETS in Korea). Given the pace of energy policy change over the last decade and the time it takes to debate, agree and implement new policies, this is probably a much fairer assessment of what is to come. Under this scenario, CO2 emissions in the energy sector rise from 31 GT in 2011, to 34.5 GT in 2020. This is quite a modest increase of just 1.2% p.a. which may well have been (almost) realized between 2011 and 2012 (see previous post), but that depends entirely on whose data is used. However, it isn’t the reduction that UNEP is saying is still possible.

This isn’t exactly news, but despite the wealth of optimistic publications and climate-speak here in Warsaw, the 2°C pathway remains out of reach. Perhaps the two page spread in the front of the COP publication was inserted as a sobering but much needed reminder of how the energy system is actually developing. Until delegates and observers come to terms with this and plan for it rather than attempt to swim upstream against the deluge, it is hard to see real progress being made. There continues to be a lot of criticism of the fact that Poland is holding this conference while at the same time continuing to run its economy on coal, but hopefully this actually helps ground the process in the difficult reality that is the current global energy system.