Tag: NZ

Rio Tinto Alcan NZ plays godfather: nice aluminium smelter you got, be a shame if something happened to it…

The Godfather Simon Johnson argues that Rio Tinto Alcan NZ (NZ Aluminium Smelters Ltd), the owner of the Tiwai Point aluminium smelter is “Godfathering” the smelter, its workforce, the Southland economy, the NZ electricity market, Meridan Energy and the poor critically endangered slow-breeding kakapo, as well as “Godfathering” the NZ emissions trading scheme to get excessive free allocations of emissions units.

Let me introduce a new term to climate change blogging. Godfathering. It’s a bit like Grandfathering, which is a recognised jargon term from emissions trading. But different. Grandfathering in an emissions trading scheme (an ETS), is giving the emission units for free to the existing emitters in the ETS on a historic pro-rata calculation. The number of units given represents the desired cap on emissions ((Alternatively the units could be sold by auction to emitters which is logical if we treat the units as shares in a public commons owned by the Government on behalf of citizens.)).

Of course, our ETS is not so simple. If our ETS just applied simple “grandfathering” as outlined, then it would have a real cap, it would not allow importing of unlimited international units, and it would be impossible for any emitter to receive more units than their emissions.

That’s not the case under the NZETS, at least for some emitters. In 2010, NZ Aluminium Smelters Ltd, which is roughly New Zealand’s third largest point source of greenhouse gas emissions, was a net seller of units, not a net payer. Their free allocation of units was 135% more than the units they needed to surrender for their emissions.

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Low hanging fruit and lost opportunity

I hope the New Zealand Government feels shamed by the news that incandescent light bulbs can no longer be sold in Europe. It could have been so here but following the 2008 election, proclaiming the sanctity of consumer choice, one of the early actions of the then Minister of Energy Gerry Brownlee was to reverse the Labour Government’s decision to phase out incandescent light bulbs. Almost equally dismaying was the statement by the Leader of the Opposition Phil Goff in 2009 that the Labour Government decision was a mistake in the first place. “We’d stopped listening to what people’s priorities were,” he said.

It’s hard to make any sense of the reversal of former Government policy on incandescents other than in the most cynical of political terms. It is in direct contradiction to any concern they express to tackle climate change. Lighting has been estimated to use nearly 20% of the world’s electricity and six years ago the International Energy Agency produced a report which concluded that a global switch to efficient lighting systems would trim the world’s electricity bill by nearly one-tenth. It is a low-hanging fruit in the reduction of carbon emissions. Even the US is to phase out incandescents.

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Offshore wind: a huge resource

Two wind energy items arrived in my inbox in close proximity recently. One was from the NZ Wind Energy Association (NZWEA) congratulating Meridian Energy on turning the first sod at Mill Creek wind farm in the Ohariu Valley north-west of Wellington. It’s a 60 megawatt farm of 26 turbines. The project will cost $169 million and is expected to be commissioned by mid-2014. It will increase NZ’s installed wind capacity from 623 megawatts to 683 megawatts.

NZWEA’s chief executive made appropriate remarks to accompany the announcement, reiterating the expectation that at least 20% of NZ’s electricity will be generated from wind by 2030 and noting the technology advances in harnessing wind which is now one of the lowest cost options for new generation in New Zealand.

It’s good to see the steady progress in the development of wind energy in NZ, although it seems to arouse little excitement in Government circles who reserve most of their interest for further  fossil fuel development. And a report in Saturday’s NZ Herald was a sobering reminder that the $7 billion invested in the oil and gas sector over the past five years puts it far ahead of any other local sector when it comes to investment in new productive capacity. NZ is hardly on the brink of transition from fossil fuels, hardly, it seems, even interested in the possibility while there’s money to be made from exploiting them.

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Ice, Mice and Men

Geoff Simmons and Gareth Morgan, with help from John McCrystal, have produced a book which one hopes will be read by many New Zealanders.  Ice, Mice and Men: The Issues Facing our Far South not only carries illuminating scientific information about the islands and seas to our south and the Antarctic continent beyond them, but it communicates it in a relaxed and engaging style which should ensure a wide general readership. The more people understand what is happening in this vital region the better, and it’s easy to see this book adding to their number.

The opening section explains why the region is important, breaking it into three zones: first, the subantarctic islands, “liferafts” of the Southern Ocean; second, the Southern Ocean itself, home to the Antarctic Circumpolar Current (ACC) and “the engine room of the global ocean and the world’s climate”; third, Antarctica, including the sea ice that surrounds it which helps drive the marine food chain and affects the transport of nutrients essential for marine life around the world. The section provides a detailed account of the function of the three zones not just in relation to each other but in crucial relation to the globe as a whole.

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Nick Smith: another fossil fuel fail

MP Nick Smith in a NZ Herald opinion piece this week uses the fracking debate to advance the cause of fossil fuel mining. He claims that fracking is important in the development of geothermal energy and then moves seamlessly to the notion that we are desperately in need of unconventional natural gas in order to save us from falling back on coal, which we will otherwise “inevitably burn”. In defending fracking he manages to nicely couple the fossil fuel natural gas with a renewable energy source, geothermal.

It’s not my purpose to argue here about fracking as a technology. What is dismaying about Smith’s article is the complacency with which he advances the cause of natural gas. Writing enthusiastically of the huge unconventional shale gas resources in the US, he claims gas emits one-third the greenhouse gas emissions of coal. I know its emissions are lower, but it was news to me that they were as low as that. I could find no source to substantiate that figure. A little over half is the best figure I have been able to locate, and there are big questions about methane leakage in the fracking process. However let that pass. The real issue is the unrestrained pursuit of unconventional fossil fuels, which as James Hansen has reminded us often enough will mean game over for the climate.

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