How clean is 'clean coal?'

Tampa Electric, the power utility, wants to build a 630 megawatt coal plant called Polk Six using "clean coal" technology. Advocates say this new method of capturing carbon emissions could make coal a good option for the future.

But, it turns out the new plant could be as dirty as regular coal plants. Why? Because the necessary clean coal technology is still at least a decade away, writes Asjylyn Loder, Times energy correspondent.

Click here to read her story explaining how capturing carbon is "riddled with policy questions, and beset by technical hurdles."

- David Adams

Ethanol boom fading? NYT thinks so

A story being published Sunday in the New York Times says ethanol's boom is fading because production has far outstripped demand.

Although just a year ago Midwestern farmers were rushing to join the biofuels gold rush, now it's looking like the goldmine is petering out, at least for now, the paper reports.

The Times says that "companies and farm cooperatives have built so many distilleries so quickly that the ethanol market is suddenly plagued by a glut, in part because the means to distribute it have not kept pace. The average national ethanol price on the spot market has plunged 30 percent since May, with the decline escalating sharply in the last few weeks."

The story quotes Neil E. Harl, an economics professor from iowa State, as saying, "The end of the ethanol boom is possibly in sight and may already be here. This is a dangerous time for people who are making investments.”

To read the full NYT story, click here.

--Craig Pittman

Standy-by to lose money...

Yikes! American households are spending $110 a year keeping their appliances in stand-by mode, says Consumer Reports.

Read the story here.

You can also check out Consumer Reports "Greener Choices" web site, a consumer-friendly took to figuring out which green products will work for you.

-By Asjylyn Loder

Bush: Let's all set a (voluntary) goal to reduce greenhouse gases

Capping off a two-day meeting of the world's worst polluters Friday, President Bush called on the attendees to work together on setting a goal for reducing greenhouse gas emissions.

"By setting this goal, we acknowledge there is a problem, and by setting this goal, we commit ourselves to doing something about it," Bush said.

He didn't exempt his own country from the list, the Associated Press notes. But he didn't endorse mandatory cuts, either. Instead, he said each nation should establish for itself what methods it will use to rein in the pollution problem without stunting economic growth.

Rather than endorse mandatory cuts, Bush said he preferred "to encourage the development of new technologies and other voluntary measures, and won't participate in any talks toward a global agreement that do not include energy guzzlers from the developing world," the AP reports.

Bush's comments fell far short of what European Union officials were hoping for.

"One of the striking features of this meeting is how isolated this administration has become," said John Ashton, special representative on climate change for the British foreign secretary. "There is absolutely no support that I can see in the international comunity that we can drive this effort on the basis of voluntary efforts."

To read the full AP report on Bush's speech and the reaction it drew, click here.

--Craig Pittman

Nuclear plans may be unrealistic

The rising demand for new energy sources has seen politicians, including the Bush administration, embracing the nuclear option. Among the companies hoping to expand its nuclear portfolio is Florida' own FPL Group.

But, in an intervew, FPL's CEO Lew Hay predicts that public opposition and high costs will dent any major nationwide reinvestment in nuclear industry.

''I think there will be some nuclear plants built,'' Hay told Bloomberg. "It's just I don't think it's going to be this giant wave that some people are referring to.''

Click here for the story.

- David Adams

More solar thermal from Ausra ...

In the last two days, two of the nation's largest utlities and a California solar company have announced $5-billion investment in clean energy, and plans for enough solar thermal electricity to power more than 1-million homes.

FPL Group, parent of Florida Power & Light, announced $2.4-billion Wednesday in carbon-dioxide reducing measures, including $1.5-billion that will pay for a 300 megawatt solar thermal power station in Florida.

Today, PG&E and Ausra announced another $2.6-billion. Together, the three companies have committed to build more than 2,000 megawatts of solar thermal.

These new utility-scale solar plants can produce electricity at a price comparable with conventional fossil-fuel power plants, Ausra claims.

Click here to learn more about solar thermal energy, or CSP as it is also known. Click here for more information from the Energy Information Administration.

Click here to read more about FPL's solar announcement in today's St Petersburg Times.

-By Asjylyn Loder, Times Staff Writer

Alex Sink: Insurers buy into global warming, feds should too

Florida CFO Alex Sink, who has been second only to Gov. Charlie Crist among state officials beating the drum for taking action on climate change, co-wrote an op-ed piece in today's Washington Post about global warming and the insurance industry.

Sink, who wrote the piece with Montana's state auditor, John Morrison, noted that insurers are sufficiently convinced of the reality of global warming that they're including it in their business calculations.

"Insurance companies make money by accurately assessing risk. For decades environmentalists have been sounding the alarm about global warming. Now major insurers are becoming engaged as they look after their own assets and those that they cover," Sink and Morrison write.

If the insurers do this, then maybe it's time to end "federal reluctance to commit to international agreements on climate change, or otherwise cap total carbon emissions," they write.

To read the full op-ed piece, click here.

Same issue of the Washington Post also contains an interesting counterpoint: A story about how the Bush Administration is claiming credit for global warming initiatives that it has actually fought against.

To read that story, click here.

 

--Craig Pittman

Energy-saving industry wins DOE plaudits

The U.S. Department of Energy named 180 manufacturers as "Energy Savers" or "Energy Champions." In 2006, the plants saved 13.8-trillion Btu, a savings of $73-million, according to the department.

The roster included CF Industries of Plant City, a Florida subsidiary of the Illinois-based producer and distributor of nitrogen and phosphate fertilizer products.

Read the Department of Energy press release here, and see the full list of businesses here.

-By Asjylyn Loder, Times Staff Writer

Condoleezza Rice urges cleaner fuels

Secretary of State Condoleezza Rice today urged the world's biggest polluters to help combat global warming by using cleaner fuels. She reiterated the Bush administration line: any shift should be voluntary.

Demonstrators outside the State Department said cuts should be mandatory, and dozens were arrested for refusing to leave the premise.  Read the AP story here.

More on FPL's 300MW solar power station

FPL announced their proposal for a 300MW solar thermal power station in Florida yesterday, part of $2.4-billion in new programs designed to curb carbon dioxide emissions. Read the full story in today's paper here.

Renewables should soon be able to compete with electricity from coal, FPL boss says.

In an interview with the Reuters news agency, FPL Group's CEO, Lew Hay said he expects power generation from low-carbon energy sources like wind, solar and nuclear should soon become competitive with electricity generated by coal, the cheapest of fossil fuels. (click here for the interview)

FPL today announced a major new investment in solar energy. Click here for the press release.

( see our previous post this morning)

- David Adams

Largo wants to turn grease into fuel

LARGO -- This North Pinellas city hopes to kick off a program in December to recycle cooking oil and grease into bio-diesel fuel.

"If we can get people to stop pouring grease down the drain, we could decrease the cost of cleaning lines significantly,'' said Irvin Kety, the city's environmental services director. Besides, Kety said, "recyling helps the environment."

Under the proposal, the city would establish a drop-off point where residents could turn in their cooking grease. From there, a private contractor would convert it into fuel that could run a car or truck that's been modified to burn the stuff.

City workers spend a quarter of their time cleaning up grease from sewer lines.
And they have horror stories to tell.

"People think, if you pour hot water down with the grease, it won’t cause any problems,'' said Rob McMath, who supervises crews that clean and monitor lines. "It’s all lies.''

-- Lorri Helfand, Times staff writer

FreedomCar gets R&D dollars

The Department of Energy announced yesterday $20-million for plug-in electric cars. The goal is to create a reliable battery-powered car that can go 40 miles without a charge, longer than most commutes. A lot of research and development money is now targeting the safety and reliability of the battery. No one wants a repeat of the flaming laptop fiasco, which could kill the prospects of popularizing the new technology. Also crucial, making sure the battery works reliably for several years. Know how your cell phone battery can weaken on you over time? Imagine that happening to your car.

There's a few plug-in test models out there, and GM's Chevy Volt is expected to be out in 2010 or 2011.

Read the Department of Energy release here. For more information on the program, click here and here.

David Pogue of the New York Times interviewed GM's Bob Lutz about electric cars. Read the interview transcript from last week's blog post here.

-By Asjylyn Loder, Times Staff Writer

FPL to spend billions on solar

Florida's biggest utility will spend $2.4 billion on major solar-energy projects, former President Bill Clinton announced at today’s session of the 2007 Clinton Global Initiative in New York City.

Clinton, a Democrat, made the announcement along with Republican Gov. Charlie Crist and Lew Hay, the CEO of FPL Group, which runs Florida Power & Light.

"It only makes sense that the sunshine state would have a solar power plant,” Crist said.  “This plant will serve as an example to other Florida and American companies that alternative energy can work."

Clinton congratulated Crist, adding "This is a huge deal for America and I think potentially a huge deal for people all around the world who want to do this."

 Clinton also praised Crist for signing an order that sets a goal of reducing the state's carbon emissions to 1990 levels by 2020 and to 80 percent of 1990 levels by 2050.

(Our colleagues at The Buzz blog note that it's worth recalling the rough political history here. FPL backed Tom Gallagher in the 2006 Republican primary for Governor. This naturally infuriated Crist (he had flogged the company as Florida attorney general for rate hikes). Crist later returned a big FPL campaign donation.)

In an interview with the Reuters news agency, Hay said he expects power generation from low-carbon energy sources like wind, solar and nuclear should soon become competitive with electricity generated by coal, the cheapest of fossil fuels. (click here for the interview)

FPL said Wednesday it is launching three initiatives:

• Investment of up to $1.5 billion in new solar thermal generating facilities in Florida and California over the next seven years, starting with a project at Florida Power & Light.
• Investment of up to $500 million by FPL to create a smart network that will provide its 4.5 million customers with enhanced energy management capabilities.
• The launch by FPL Energy of a new consumer education program and new products that could increase renewable energy resources by at least $400 million over the first five years of the program.

FPL is working with a California-based startup called Ausra Inc. "FPL is planning to build 300 megawatts of solar generating capacity in Florida using Ausra, Inc.’s solar thermal technology," the company's press release announced. "According to estimates, this new facility will avoid nearly 11 million tons of carbon dioxide emissions over a 20-year period. As a first step, FPL expects to construct a 10-megawatt project. Subject to Ausra meeting agreed-upon cost and technical specifications, as well as FPL gaining regulatory and related approvals, the utility will expand the project to a 300-megawatt facility."

Click here to read more about the announcement in the St Pete Times.

For the full FPL press release about this initiative, click here.

--Craig Pittman, David Adams and Steve Bousquet.

Governor Crist attends Clinton Global Initiative.

Florida Governor Charlie Crist is speaking on a climate change and energy at a Clinton Global Initiative roundtable in New York between 12pm and 3pm. (click here for the schedule of the meeting and a list of panelists. Crist's panel is at 1.30pm, Working Session 1, Energy and Climate Change)

I hope to post his speech here later in the day, along with his promised "major energy announcement."

For more on Crist's New York appearance at the Clinton Global Initiative click here to read our story  this morning's The St Petersburg Times, 'Crist takes global initiative.'

(photo above shows some of the people attending the event, including Ted Turner, Desmond Tutu, Andre Agassi, Brad Pitt and Angelina Jolie, as well as a host of world leaders, industry chiefs, environmentalists and other world leaders)

- David Adams

Crist to make new climate change announcement in New York on Wednesday

This afternoon, Florida Governor Charlie Crist will travel to New York City where, Wednesday, his office says "he will make a major energy announcement and attend a global climate change roundtable."

This announcement caught the Tallahassee press by surprise.

Turns out Crist will be a featured speaker at the 'Clinton Global Initiative' the brainchild of former president Bill Clinton.

Crist has been invited to speak on a 3 hour Energy and Climate Change panel, titled, 'Redefining Business As Usual.' Fellow speakers include actor Brad Pitt, co-chair of the Jolie-Pitt Foundation. Also on the panel is media mogul Ted Turner. (see agenda below)

Speakers will address "how climate change is causing companies large and small to rethink not only their interactions with employees, customers and the public—but increasingly their very business models." The panel will also explore "innovative and profitable strategies" being adopted by leading businesses.

The Clinton initiative is a gathering of 1,000 world leaders to examine pressing global challenges including education, health, poverty and energy and climate change.

Crist has played this event really close to his chest. He spoke at lunchtime to a packed audience at an Orange County climate change summit in Orlando and made no mention of his New York trip. He even brushed off a question about it from an inquisitive reporter from the Orlando Sentinel.

At the Orlando summit Crist gave his now familiar upbeat energy speech pushing his advocacy of clean energy, including wind, solar power, ethanol and hydrogen fuel cells.
He credited Schwarzenegger's influence saying he was following in The Terminator's "very large foot-print."

Here is the Clinton Global Initiative agenda:

WORKING SESSION 1:  ENERGY AND CLIMATE CHANGE

Wednesday, 12:00 pm – 3:00 pm

“Redefining Business As Usual” will address how climate change is causing companies large and small to rethink not only their interactions with employees, customers and the public—but increasingly their very business models. This panel will explore some of the most innovative and profitable strategies being adopted by leading businesses and their potential for widespread adoption.

* = Moderator

Remarks by:
Wendy Abrams
Founder, Cool Globes

Jim Ball
President and CEO, Evangelical Environmental Networks

The Honorable Charles Crist
Governor, State of Florida

Roger W. Ferguson Jr.
Executive Committee Member and Head of FInancial Services, Swiss Reinsurance Company

Rolando Gonzalez-Bunster
President and CEO, Basic Energy, Ltd.

Brad Pitt
Co-Chair, Jolie-Pitt Foundation

Shai Weiss
Chief Executive Officer, Virgin Fuels

Panelists:

Daniel Esty*
Hillhouse Professor of Environmental Law and Policy, Yale University
Sultan Ahmed Al Jaber
CEO, Masdar, Abu Dhabi Future Energy Company
Mindy Lubber
President, Ceres
Jim Rogers
Chairman, President, and CEO, Duke Energy Corporation
Ted Turner
Chairman, Turner Enterprises, Inc.

Tampa Electric wins approval for new energy savers

Tampa Electric won approval this morning for a slew of new conservation programs, including a pioneering effort to use third-party vendors to enroll and manage energy conservation by commercial customers. The Florida Public Service Commission unanimously approved the 12 programs, which include rebates for residential and commercial customers for improvements that save energy, like better windows, heating and cooling units, insulation and duct sealing. The new program to manage demand from commercial customers has been granted an interim approval until 2009, when the PSC will review it again to see if it saved money and reduced energy use. Check back later for more details.

--By Asjylyn Loder, Times Staff Writer

South Florida sugar dynasty drama, 'Cane' opens today. TV's first renewable energy plotline.

I'm not a big TV watcher (except for baseball) but my colleague Eric Deggans, St Pete Times TV critic, is recommending tonight's season opener of the new CBS South Florida sugar-dynasty drama, 'Cane.'

The Cuban exile plot can't help but appeal to someone like me, living in Miami surrounded by Cuban Americans. What really grabbed my attention though is Eric's description of the central character, Alex Vega, played by Jimmy Smits.

Apparently, Alex Vega believes the future lies in refining sugar to make ethanol.

''Sugar is the new oil,'' Vega argues. ''Today you're putting it in your coffee, tomorrow we're going to be driving our cars with it.''

It is perhaps no mere coincidence that Florida's chief sugar growers are the Cuban-American Fanjul family. They don't in fact make ethanol from sugar cane at present, though I am told they are looking at that possibility. (They also own sugar cane fields in the Dominican Republic which they have announced will begin to start making ethanol for the US market).

The St Pete Times recently looked at why Florida sugar growers do n ot produce ethanol. Click here to read the story by my colleague, Wes Allison.

Click here to read Deggans review in the St Pete Times.

- David Adams

New Nukes take Baby Steps

An independent power producer plans to take the first steps Tuesday toward what has been hailed as America's nuclear renaissance. It's one of nearly 30 new nuclear plants planned throughout the U.S., most of which are slated for the south east.

Gov. Charlie Crist has repeatedly said there's a place for nuclear power in the Florida's energy future. Progress Energy Florida, based in St. Petersburg, is in the planning stages for a new plant slated for Levy County. Its sister company, Progress Energy Carolinas, plans another in North Carolina.

Some see nuclear power as a carbon-free energy solution that can help reduce greenhouse gases. Others worry about the potential for accidents, and about the mounting problem of what to do with the radioactive waste.

Read the Associated Press story here.

-By Asjylyn Loder, Times Staff Writer

UN chief: Let's get moving on new warming accord

"U.N. Secretary General Ban Ki Moon said Monday that a 15-year international effort to stem global warming has failed to halt the buildup of greenhouse emissions and called for governments to undertake 'unprecedented action' to reverse the trend," the Washington Post reported this afternoon.

The Post quoted Ban as saying he's "dismayed" that the world's leaders have not moved faster replacing the the Kyoto Protocol, which expires at the end of 2012.

"Our goal must be nothing short of a real breakthrough," Ban said, according to the Post. "We must be guided by the reality that inaction now will prove the costliest action of all in the long term."

To read the full Washington Post story click here.

--Craig Pittman

Smells like it's getting hotter...

For millennia, layers of animal waste and other organic matter left behind by the creatures that used to roam the Arctic tundra have been sealed inside the frozen permafrost.

Now global warming is thawing the permafrost  -- and liberating the dung of woolly mammoths and other prehistoric creatures from suspended animation, notes a Reuters report that came out last week.

Some scientists believe that "as this organic matter becomes exposed to the air it will accelerate global warming faster than even some of the most pessimistic forecasts," Reuters reported.

The theory goes like this: As the dung  -- and the microbes it contains-- thaw out, they will begin emitting enormous quantities of both carbon dioxide and methane gas. Those emissions of greenhouse gases will further accelerate global warming, thus accelerating the thawing of the permafrost and exposing still more dung, and so on and so on.

To read more about this, um, stinky situation, click here.

--Craig Pittman

UN: Bush Administration not doing so hot on global warming

Today more than 70 prime ministers and 80 other national representatives are gathering at the United Nations for its first-ever "climate summit."

U.N. Secretary-General Ban Ki-moon organized the summit to build political momentum toward launching negotiations later this year for deep cutbacks in emissions of carbon dioxide and other manmade gases blamed for global warming. The summit "looks ahead to December's annual climate treaty conference in Bali, Indonesia, when the Europeans, Japanese and others hope to initiate talks for an emissions-reduction agreement to succeed the Kyoto Protocol in 2012," the Associated Press reports.

One world leader not attending Monday's summit: President Bush.

Instead, Bush is scheduled to attend a small dinner this evening, a gathering of key players hosted by the secretary-general. Then Bush expects to convene his own two-day meeting with more than a dozen major greenhouse-gas-emitting nations on Thursday.

The Bush administration has made a significant shift on global warming, but it still falls short on needed aggressive policies, the U.N.'s climate chief said.

“It’s very clear that we’re not on track,” climate chief Yvo de Boer said, according to the AP.

But Bush aides say that the president hopes to persuade the nations that produce 90 percent of the world's emissions to come to a consensus that would allow each nation, including the US, to set its own limits rather than having limits imposed by a binding international treaty.

"It's our philosophy that each nation has the sovereign capacity to decide for itself what its own portfolio of policies should be," said James Connaughton, the president's chief environmental adviser, told the International Herald Tribune.

To read the full AP story on the convening of the summit, click here.

To read the AP story on the climate chief's comments, click here.

To read the International Herald Tribune story, click here.

--Craig Pittman

Mexico's declining oil reserves. Reason for concern?

As I report in The St Petersburg Times on Monday, Mexico's oil reserves are depleting at an alarming rate, creating concern in the US and on the wider global market. (click here for my story)

This is not an especially new problem, but it is one that has only recently begun to be taken more seriously due to the tightening of the global oil market.

The problem largely revolves around the inability of Petroleos Mexicanos (Pemex), the state-owned oil company, to devote sufficient resources to exploration and development of new oil reserves. Because it is is state-owned, it is bound by restrictions on foreign investment.

There is some good news however, which I didn't have room to address in the story.
A new tax break for Mexican state-owned oil monopoly Pemex as part of a broader tax reform approved by Mexico's Congress last week will save the company billions of dollars over the coming years and enable it to boost flagging production.

In response, the global credit ratings firm, Fitch Ratings, last week raised the foreign currency rating of Pemex from BBB- to BBB. (click here for story)

Fitch has in the past expressed its concern about Pemex's insufficient investment program to maintain its reserve base due to government imposed funding constraints. "Without changes to the corporate governance structure of PEMEX or further energy sector reform, Fitch believes PEMEX may have difficulty achieving its long-term exploration, development, and production targets," Fitch said in a recent ratings report.

It noted that under the current tax scheme, Pemex's tax payments amount to 60.8% of its revenues. "This has siphoned off cash flow that could otherwise be used to support the company's investment program," Fitch said.

The expected new fiscal regime would lower Pemex's taxes beginning in 2008. The company expects annual tax savings of $2 to $3 billion. These tax savings, along with other measures and a new approach by the current administration of president Felipe Calderon, could allow Pemex to make needed investments in the oil sector, Fitch now says.

Click here for more information and statistics about Mexico's oil industry from the Energy Information Administration, which provides official energy statistics from the US Department of Energy.

Click here for more news about Fitch ratings for Pemex, or visit www.fitchratings.com

(My thanks to Jo Bamrud at Latin Business Chronicle for bringing me up to date on the impact of the tax reform on Fitch's rating.)

- David Adams

Multimedia tool for greenhousse gas emissions in the US - state by state

Check out this fabulous multi-media tool from AP which shows greenhouse gas emissions on a state by state basis:

Carbon Emissions by State

- David Adams

Maps of global warming impact on US coast - not a pretty sight

The Associated Press has conducted a review of coastal maps and the impact of global warming,  based on data from the U.S. Geological Survey. (the map on left shows how Florida would look - the red is the area at risk of being under water)

Click here to see what it found.

The AP notes that scientists say a combination of melting glaciers, disappearing ice sheets and warmer waters expanding is expected to cause oceans to rise by one meter, or about 39 inches. The only question scientists can't agree on is if it could happen in 50 years, 100, or 150.

- David Adams

The promise of biofuels in Latin America: myths and reality.

Speaking at The Miami Herald's annual America's Conference, former Florida Governor Jeb Bush reiterated his call for an end to the 54c a gallon tariff on ethanol imports from Brazil. However, he lamented that this was unlikely in an election year given the traditional role of the Iowa caucus at the start of the electoral calendar.

A panel on ethanol also heard that sugar can't grow in the Amazon rain forest, contrary to some of the dire warnings about the threat biofuels pose to the world's forests. The Amazon region is too wet to allow canes to mature, said Roberto Rodrigues, Brazil's former agriculture minister and co-chairman with Bush of the Interamerican Ethanol Commission.

Ethanol won't replace oil, either. Together with wind and other renewable sources of energy, biofuels can only aspire to complement oil.

On the same panel, General Motors exec Robin Walker-Lee dissed efforts to raise federal fuel economy (CAFE) standards, suggesting that GM's E85 (gasoline/ethanol blend) vehicles were a better answer to the country's energy crunch.
She moaned that while GM has put 11,000 flex-fuel vehicles on the road in South Florida, there is only one gas station in Miami that currently supplies E85. “We’ve developed the technology. We’ve put it in the car. We’ve put the cars on the road,” Walker-Lee said.

She neglected to mention that GM's E85 fleet mostly includes gas-guzzling SUVs. (She proudly disclosed that she drives a company Chavy Tahoe E85. She didn't tell the audience that it only does an average of 12 miles-per-gallon.)

The panel also heard from David Rothkopf, deputy under secretary of commerce for international trade policy in the Clinton Administration, and of the most authoritative voices in the US on biofuels. (see his 700-page 'blueprint for green energy in the Americas')

Rothkopf analised the top 15 myths about biofuels. Regarding the raging food .v. fuel debate he made some interesting points. Instead of blaming ethanol for rising food prices he said the blame lay mostly elsewhere:

* extreme weather which has disrupted harvests around the globe

* currency shifts and the falling dollar

* the increased price of oil and its impact on farm operating costs and transporting goods to market

* economic growth in countries such as China and India. Rothkopf pointed out that beef consumption in China has risen 30% in recent years, while chicken consumption in India is up 100%.

Rothkopf also pointed out that biofuels aren't always as green as they would like to be, noting that current US corn ethanol is inefficiently produced (using fossil fuel energy).

Click here for Miami Herald coverage by Jane Bussey.

- David Adams

Biofuels show promise across Latin America - not just Brazil

Most Latin American and Caribbean countries are rushing forward with plans to begin exporting biofuels by 2010, The Miami Herald reports.

Government officials throughout the region say they want to help reduce global warming and improve public health by producing a less-polluting fuel.

But the main driver is the desire to create jobs, attract new investment and increase exports to the United States and Europe.

The Herald is hosting a panel on biofuels this morning which I will be attending. I will update this post later in the day.

Click here to read the Herald story by Tyler Bridges.

- David Adams

New report on biofuels and global food prices. Is there a link?

A report by The Institute for Agriculture and Trade Policy (IATP), calls for sustainable practices and fair trading systems to regulate biofuels production.

But U.S. ethanol production will likely not cause people to go hungry in other countries, according to the paper, titled “Food versus Fuel in the United States: Can Both Win in the Era of Ethanol.”

A global rise in the price of corn and other farm commodities related to biofuel production may affect food prices, but it also provides a better chance for subsistence farmers around the world ," it gos on.

“Historically, the U.S. has dumped under-priced corn and other commodities into the international market and done enormous damage to the viability of farmers in countries like Mexico,” said Mark Muller, director of IATP’s Environment and Agriculture program. “Biofuels have driven a major shift in the U.S. agriculture economy toward domestic use, and the result has actually been an overall grain demand that better matches supply, and a return to fair prices for farmers in the U.S. and around the world.”

The paper concludes, however, that to ensure the U.S.-based biofuel sector does not aggravate hunger in the future, several steps need to be taken, including the following:

1) the U.S. must shift production away from an almost exclusively corn-based ethanol system, toward more sustainable, perennial energy crops that enhance the health of soil and water resources for future agricultural production;

2) the emerging global trading system for biofuels must support local economies and local food sovereignty – the ability of countries to feed themselves.

Click here to read the report.

- David Adams

US signalling readiness to reduce farm subsidies, diplomats say.

Critics of biofuels like to point to the government subsidies that farmers receive, as well as  tariffs that protect the US ethanol industry from cheaper imports. There's also a 51 cent-per-gallon blenders credit that goes to producers of ethanol.

Biofuels advocates respond that those subsidies and tax credits will be done away with as soon as the industry is able to stand on its own feet. (With oil hitting $82 a barrel this morning, the future of biofuels is looking more and solid.) The biofuels industry says it needs government support in order to  encourage the major private capital investment required to reach production targets.

The question remains when will the subsidies and tariffs begin to be taken away. The outcry against them is beginning to get louder and louder, especially as food prices are rising due to increased corn planting. (see Monday's post on the OECD report about biofuels). It doesn't help that corn-based ethanol is much less efficient than using sugar cane, as Brazil does. Second generation cellulosic ethanol technology is still at least 2-3 years away from commercial viability.

So, it is interesting to note that the Bush administration is beginning to talk about reducing farm subsidies in world trade talks.

Click here for more news from Geneva.

- David Adams

Florida company wins battery award for hydrid vehicles.

A Florida company, EnerDel has won a $6.5 million contract to develop lithium-ion battery technology for hybrid electric vehicles.

The contract was awarded by the United States Advanced Battery Consortium (USABC). Its members include Chrysler, Ford, and General Motors.

Fort Lauderdale-based EnerDel is a subsidiary of Ener1.

Click here for more information.

 

- David Adams

The New York Times lays into corn-based ethanol.

The New York Times, which is a strong advocate of biofuels, carries an editorial today ripping into the Bush administration's corn-based ethanol program. This comes on top of a series of reports warning of the serious dislocation to food prices by current policy.

"The economics of corn ethanol have never made much sense," writes The New York Times. "Rather than importing cheap Brazilian ethanol made from sugar cane, the United States slaps a tariff of 54 cents a gallon on ethanol from Brazil. Then the government provides a tax break of 51 cents a gallon to American ethanol producers — on top of the generous subsidies that corn growers already receive under the farm program."

Click here to read the full editorial.

- David Adams

States pressure SEC to push climate change disclosures

A group of state officials, state pension fund managers and environmental organizations have announced a campaign to push the Securities and Exchange Commission to force companies to disclose their financial risks from climate change.

They are petitioning the SEC to require the disclosures because financial risks -- and opportunities -- from climate change meet the test of being material information that investors need to know.

For instance, the Washington Post notes, "one of the industries considered most vulnerable to climate change is the insurance industry, with shifting weather patterns threatening property in the nation's most hurricane-prone areas.Yet in its 345-page annual financial report filed with the SEC this year, Allstate, which insures one out of every eight homes in the United States, did not mention climate change, global warming, greenhouse gases or carbon dioxide."

Among those who signed the petition unveiled today: Alex Sink, Florida's chief financial officer. She told the Wall Street Journal that state treasurers are "responding to the interest of the general public" in climate-change issues and are openly seeking to "push the agenda forward" to change behavior.

She was joined on the petition by New York State Attorney General Andrew Cuomo; the comptrollers of New York State and New York City; the California state comptroller and the huge California state government and teachers’ pension funds; and financial officials from North Carolina, Oregon, Vermont, Rhode Island and Maine, and the New Jersey State Investment Council.

To read the Washington Post story, click here.

To read the Wall Street Journal story, click here.

To read the petition in a PDF file, click here.

--Craig PIttman

'Responsible soy.' Is there a way to grow biofuel crops in Brazil without destroying the Amazon? McDonald's and Cargill think there is.

After yesterday's skeptical report from the OECD, here's something more positive from one of my favorite reporters, freelancer Andrew Downie in Brazil.

Andrew describes how the 'Responsible Soy Project' is helping farmers in the Amazon sell soy to Cargill if they promise to plant trees on deforested land. Apparently it was McDonald's who set that condition after pressure from environmental groups and consumers. Cargill is funding The Nature Conservancy to oversee the project.

Downie writes:
"It is, conservationists say, a potential model for sustainable development not just in the Amazon but all over Brazil, home to the world's largest rain forest."

Thanks Andrew for bringing us this valuable and intriguing story!

Click here to read the story in the Christian Science Monitor.

Click here also for some background on the story from Andrew Downie.

and click here for a longer story on the same subject Downie wrote for Nature Conservancy Magazine.

- David Adams

Can temperature rise be limited?

International efforts to limit the global temperature rise to 2 degree centigrade are unlikely to be met, a leading climate researcher has told the BBC.

Professor Martin Parry, co-chair of the 'Impacts Working Group' of the Intergovernmental Panel on Climate Change (IPCC), told BBC News that millions, if not tens of millions, would be at increased risk to their lives from a rise above 2C (3.6F).

The IPCC published its summary findings in April. The group's full 2007 report is being presented to scientists in London.

Click here for more news from the BBC.

- David Adams

Judge says no to Calif. suit against carmakers

A federal judge has ruled against California's suit to hold the six largest automakers responsible for global warming damages, the Associated Press is reporting.

In its lawsuit filed last year, California blamed the auto industry -- specifically Chrysler Motor Corp., Ford Motor Co., General Motors Corp. and the U.S. subsidiaries of Japan's biggest manufacturers, Honda North America, Nissan North America and Toyota Motor North America -- for millions of dollars it expects to spend on repairing damage from global warming-induced floods and other natural disasters.

But U.S. District Judge Martin Jenkins said that many culprits -- including other industries and even natural sources -- are responsible for emitting greenhouse gases.

"The court is left without guidance in determining what is an unreasonable contribution to the sum of carbon dioxide in the earth's atmosphere, or in determining who should bear the costs associated with global climate change that admittedly result from multiple sources around the globe," Jenkins wrote in his 24-page ruling, released Monday.

One interesting bit of legal reasoning: The judge also ruled that keeping the lawsuit alive would threaten the country's foreign policy position, because the Bush administration has consistently opposed any international treaty that would impose cuts on greenhouse gases.

"President George W. Bush opposes the protocol because it exempts developing nations who are major emitters, fails to address two major pollutants, and would have a negative economic impact on the United States," Jenkins wrote. He said that a court "injecting itself into the global warming thicket at this juncture would require an initial policy determination of the type reserved for the political branches of government."

The auto industry is also squaring off against California in a separate court case, challenging a state law requiring the automakers to reduce vehicle carbon emissions by 2009. A federal judge in Vermont last week rejected the industry's challenge to that state's nearly identical law, boosting California's hopes of prevailing in the courts on its lawsuit.

To read the full AP story on the ruling, click here.

To see a PDF file of the judge's decision, click here.

--Craig Pittman

Biofuels: 'Is the cure worse than the disease?'

The biofuels industry has been hit by another highly skeptical report, this time by the Organization for Economic Cooperation and Development (OECD).

The report titled "Is the cure worse than the disease?' says the promotion of biofuels is "creating unsustainable tensions that will disrupt markets without generating significant environmental benefits."

The report argues that much of the science behind biofuels is new, relatively unproven and may only reduce global greenhouse gas emissions by as little as 3%, at best.

It adds: "When acidification, fertilizer use, biodiversity loss and toxicity of agricultural pesticides are taken into account, the overall environmental impacts of ethanol and biodiesel can very easily exceed those of petrol and mineral diesel."

(The report, issued by the General Secretariat of the OECD, was written by the Round Table for Sustainable Development, and is not a statement of official OECD policy.)

The report does not come out totally against biofuels recognizing that they may serve a better role in some countries than others. It recognizes for example, that sugar cane for ethanol production in Brazil is much more efficient that using corn as in the United States. The report suggests that the industry would benefit from the elimination of tariffs (such as the 54cent-per-gallon tariff imposed by the United States on ethanol from Brazil). It also says governments should negotiate agreed standards for sustainable biofuels, in order to limit the environmental impact of biofuels.

But the overall tone of the report is highly negative. It concludes by calling on governments to cut their subsidies for the sector and instead encourage research into technologies that would avoid competing for land use with food production. "Governments should cease to create new mandates for biofuels and investigate ways to phase them out," it says.

In response to this report, an EU Commission spokesman said that "Biofuels do produce less CO2 than fossil fuels, there is no doubt about that. I am confident that our biofuel policy is definitely positive for the environment."

Click here for a link to the OECD report.

Click here for an interview with Richard Doornbosch the co-author of the report.
- David Adams

Identifying winners in the 'clean tech' stock market: SunPower, Covanta, Cree, Comverge .....

If you follow energy stocks, and have some money invested, these are interesting times (risky too) for anyone trying to guess which stocks look best in the long term.

When oil hit $75 a barrel in 2005, many "experts" predicted the price would quickly drop back to the $40 a barrel range. For that reason they argued that ethanol-blended fuel and other alternatives would struggle to compete with traditional fossil fuels. Well, they were wrong, and the future has never looked brighter for renewables.

Even so, working out which options are best - solar, wind, biofuels - and which companies have the best business plans, is no easy task.

I don't consider myself an "expert," so I won't hazard a guess. (I just hope my 401K managed fund is doing the right thing and has identified some good investments).

Instead, click here for a recent clean tech stocks analysis from The New York Times. The article features several companies including solar cell manufacturer, SunPower Corp, waste-to-energy electric company, Covanta Energy, LED lighting manufacturer, Cree, and Comverge, which provides power companies with electricity demand reduction technology.

- David Adams

More photo evidence of Arctic ice melting.

Arctic ice has shrunk to the lowest level on record, according to new satellite images released by the European Space Agency.

That brings closer to reality the possibility that the Northwest Passage could one day become an open shipping lane. This would have a dramatic effect on worldwide trade, making the Panama Canal virtually redundant.

Click here for the AP report.

- David Adams

Toxic and unpredictable. Is Jatropha as good as they say?

The hardy, seed-bearing Jatropha plant is being hailed by scientists and policy makers as a potentially ideal source  of biofuel. But experts say there are downsides to Jatropha that make it less attractive in the long term.

The plant is toxic and its yields are variable, experts told a conference in China this week.

Click here for an article from Reuters.

- David Adams

Climate change is now a fact, says Bush's chief science adviser.

The US chief scientist has told the BBC that climate change is now a fact.
Professor John Marburger, who advises President Bush, said it was more than 90% certain that greenhouse gas emissions from mankind are to blame.

(Photo: Marburger, left, is the president's top science adviser)

Click here to read the story on the BBC's website.

- David Adams

Global warming yields more crops in Greenland's frozen fields

Believe it or not, there's a potato glut in Greenland - thanks to global warming. Due to warming weather crops can be planted earlier than before in southern Greenland creating greater yields. There's also more flowers and vegetables like broccoli.

Click here for a report from the BBC.

The Fueling Station on Marketplace Morning Report discussing Brazil's WTO case on US farm subsidies.

Brazil is asking the World Trade Organization to investigate U.S. farm subsidies for ethanol. High import tariffs and subsidies for U.S. producers have made it difficult a difficult market for ethanol, but Brazil doesn't want to be kept out.

Click here to listen to a report by Dan Grech on American Public Media's Marketplace Morning Report.

- David Adams

Corn harvest looking good in North Dakota and Kansas.

Latest report are that North Dakota and Kansas are expecting record corn harvests this year. That's good for ethanol production targets. But more corn also means less wheat.

Click here for more news from AP.

- David Adams

E85 makes its Miami debut

E85 (gasoline blended with 85% ethanol) is making its debut in South Florida today.

The U Gas station at 210 NW 79 Ave near the Mall of the Americas in Miami-Dade County (click here for directions) will become the first service station in South Florida to offer E85 to flex-fuel vehicle owners.

"Ethanol is the future. It's renewable energy and it's the correct thing to do," owner Willie Urbieta, tells the Miami Herald.

If the 11,317 owners of General Motors E85 ethanol-capable vehicles in the Miami area refueled solely with E85 ethanol, an estimated 161,671 barrels of oil could be saved annually, says GM.

Click here to read the story.

Click here for a video report.

Click here for a list of E85 compatible vehicles.

- David Adams

The potential of biomass waste: organic humus and electricity

A report in today's St Petersburg Times describes how a Florida company, Mother's Organics Humus Farm, is planning to turn yard waste into organic humus to sell to local farmers. The company's founders are renewable energy enthusiasts who believe the nation's current energy crisis is here to stay - unlike the 1970s.

They are surely onto something - perhaps one of the least well understood and developed concepts in the emerging field of renewable energy: the enormous potential of biomass waste.

If you click on the biomass category on the left hand side of this screen you will more information about other projects in this field, including a number of waste-to-energy endeavors, seeking to turn biomass into electricity. Biomass Gas & Electric Co., an Atlanta-based alternative energy producer, is partnering with Progress Energy Florida to build one of the state's first, and possibly the largest, power plant that will convert wood waste into electricity.

Early on when we started this blog we featured Dr Jose Sifontes, a biomass to energy pioneer in Gainesville who turns the city's municipal waste into a clean-burning gas. He and others are exploring ways of capturing landfill gases to drive turbines to produce electricity. Florida horse manure is another source of potential energy. Dr Ann Wilkie at the University of Florida is one of the leading researchers in the field of anaerobic digestion for waste treatment. Her current program focuses on biogas generation from bioethanol and biodiesel by-products. As she likes to say; "Fossil fuel is fossil thinking."

 NASA is also funding research at the Florida Solar Energy Center (FSEC) in Cocoa to make hydrogen gas for the space shuttle from local landfill gas.

Click here to read today's story in the St Pete Times.

Click here to visit our biomass page.

- David Adams

Students riding biodiesel buses at University of Miami

The University of Miami is greening its campus by converting part of its