China To Build Two Nuclear Power Plants in Weihai

China plans to build two nuclear power plants in the coastal city of Weihai, in Shandong province, according to city officials. The two plants will be located in the Rushan and Rongcheng districts of Weihai. The projects are awaiting final approval. China will begin building a new generation 'pebble-bed' nuclear reactor in Weihai with the aim of making the technology commercially viable by 2020.

China plans to quadruple its nuclear generation by building 40 new reactors in the next 15 years. (AFX News Ltd)

HFC-23 is 12,000 Times More Potent Than Carbon Dioxide

The Secretariat of the United Nations Clean Development Mechanism (CDM) estimates that a ton of trifluoromethane (HFC-23) has the same greenhouse effect as about 12,000 tons of carbon dioxide. HFC-23 is used as a refrigerant and in fire supression systems, right. The gas can be decomposed via a thermal oxidation process.

Companies in China and India are utilizing the Certified Emissions Reductions generated as a result of large-scale industrial abatement projects to generate offsets to sell through the United Nations Clean Development Mechanism under the Kyoto Protocol. Neither country is a signatory to the protocol but the CER and CDM allow developing countries to participate through a signatory country.

Nearly all HFC-23 emissions (98 percent) are created as a byproduct in the production of chlorodifluoromethane (HCFC-22) and generally are vented to the atmosphere. In some cases the HFC-23 is captured for use in a limited number of applications. The increase in HFC emissions since the early 1990s reflects the use of HFCs as replacements for CFCs (chlorofluorocarbons), HCFCs (hydrochlorofluorocarbons), halons, and other ozone-depleting substances (ODS) that are being phased out under the Montreal Protocol because they damage the Earth’s stratospheric ozone layer. HCFCs deplete ozone. HFCs do not deplete ozone. (DOE-EIA, NYT)

Gazprom is the ExxonMobile of Russia

Gazprom (Wikipedia) is Russia's super oil and gas company. It is the biggest extractor of natural gas in the world. Other similar companies in Russia include Rosneft, Transneft, the state oil pipeline monopoly and Yukos (dismantled since filing bankruptcy). The politics around this company are complex, but it is currently state controlled.

A big controversy right now is Gazprom's insistence that Shell include it as a partner in the Sakhalin II, a joint project between Shell and Japanese companies (Wikipedia). ExxonMobile's Sakhalin I (Wikipedia) project is also being forced into partnerships with Gazprom. Russia is using environmental regulations as a way to force negotiated partnerships and increased tax revenues.

Statoil Buys Norsk Hydro & Becomes Largest Offshore Company

Statoil of Norway bought Norsk Hydro for $28 billion to become the world's largest off-shore oil company. Statoil is controlled by the Norwegian government and the combined companies will produce 1.9 million barrels a day. The combined companies have an estimated 6.3 billion barrels in oil and gas reserves.

Norway holds about half of Europe's oil and gas reserves and is the world's third largest oil exporter after Saudi Arabia and Russia. (NYT)

European Union Goes After Airlines on Carbon Dioxide

Beginning in 2011, the European Union wants to put extra charges for carbon dioxide emissions on foreign and domestic airline carriers. It is an effort to meet the requirements of the Kyoto Protocol. It is estimated that the plan will cost 2.9 billion euros ($3.8 billion) a year to buy allowances starting in 2012. The costs will be passed on to passengers and could be more than $50 per ticket depending on the destinations and offset prices.

Oil Shale: Extract by Electric Heat, Steam & Gas Injection

Shell, Chevron and EGL Resources want to pump oil out of underground oil shale by using three separate techniques: 1) Electrical Heater, 2) Hot Steam and 3) CO2 injection, respectively. Shell wants to heat shale 2,000 feet deep to 650 degrees F. Chevron wants to circulate CO2 or other gases creating a chemical reaction that will force the oil up. EGL would use a radiator system under the shale and a web of pipes to pump it out of the rock. The largest deposits of oil shale are in Colorado, Utah and Wyoming.

Government estimates put the recoverable oil from shale at 800 billion barrels, more than three times the proven reserves os Saudia Arabia. The U.S. is the Saudi Arabia of oil shale. We estimate that oil has to reamina at between $70 to $100 to justify the expense of extracting oil from shale.

The companies have the challenge of doing this without contaminating the groundwater. They must also figure out how to produce the energy needed to heat the shale without producing huge greenhouse gas emission. Maybe a small nuke plant would work. (The New York Times)

Westinghouse to Build Nuclear Power Plants in China

China and the United States have signed an agreement that supports the transfer of nuclear technology to China. Westinhouse Electric Company wants to build 4 nuclear power plants in China. The agreement was signed by China's minister for the National Development and Reform Commission and U.S. Energy Secretary Samuel Bodman.

Westinghouse wants to build facilities at Snmen in Zhejiang Province and at Yangjiang in Guangdong Province. Westinghouse wants the plants up by 2013. Westinghouse wants to build its new AP 1000 nuclear power plant. Shaw Group Inc (Westinghouse's U.S. engineering and construction services contractor) signed a companion agreement with China's State Nuclear Power Technology Co. to work out details for the contract and construction. (The Washington Post)

EPA, China & Asia Agree to Cooperate on Environment

EPA Administrator Stephen L. Johnson, left, signed a Statement of Cooperation with the Chinese State Environmental Protection Administration (SEPA) and the Asian Development Bank (ADB) in Beijing. This agreement will support the development of cap and trade mechanisms, the use of economic and market tools to address environmental issues, and the strengthening of SEPA's regional>infrastructure. China's rapid economic growth and urbanization have placed pressures on its environment. Large-scale investments will be necessary to improve air quality in major cities and towns, treat wastewater discharged into rivers and lakes, and provide safe drinking water supplies.

This trilateral collaboration leverages EPA resources and expertise to help China address environmental challenges. EPA and ADB currently have technical cooperation programs in China. In 2005, ADB approved about $1.5 billion in loans and $18.5 million in technical assistance to China. In December 2003, EPA and SEPA signed a Memorandum of Understanding that included annexes on Air Pollution, Water Pollution, and Pollution from Persistent Organic Pollutants (POPs) and other Toxic Substances. A fourth annex on Hazardous and Solid Waste was added during Administrator Johnson's first visit to China in April 2006.

Verizon To Build NEW Optical Line To China

Verizon Business is the only U.S. based business that will play a vital role in building the first next-generation undersea optical cable system directly linking the U.S. mainland and China. The Trans-Pacific Express will provide greater capacity and higher speeds to meet the dramatic increase in demand for IP, data and voice communications to the world's fastest growing region, Asia-Pacific.

It will support the equivalent of 62 million simultaneous phone calls, more than 60 times the overall capacity of the existing cable, to support future Internet growth and advanced applications such as video and e-commerce.

Congestion: Asthma in the Electricity Transmission System

When utiltiies do not have enough electricity from their own generation they import from other utilities or merchant generators. Bottlenecks in the transmission lines prevent transmission of enough electricity and raises the price of this power for everybody (congestion charges). New transmission lines are needed but NIMBYites restrict the building of lines whenever and wherever they can. They are supported by professional environmentalists and environmental organizations.

The Department of Energy (DOE) estimates that congestion charges add $8 billion, about $40 per person, to electricity charges to about 200 million people on the Eastern grid system. Transmission lines have not been maintained and expanded to keep up with growing electricity demand. The weaknesses in the transmission system also serve as a barrier to successful deregulation. The Energy Policy Act of 2005 prevents state and local officials from blocking new lines. Provisions from this law will probably be needed by Dominion Power to build new lines across the Allegheny Mountains to serve Northern Virginia.

The Department of Energy estimates that peaking plants are now being used 40 percent of the year instaead of just during times of peak electricity use just to keep enough electrons on the grid. Another factor is that congestion charges are not broken out separately in the average residential customer's electricity bill. (New York Times)

Dominion Virginia Power High Power Line Plans Protested

Residents protested at a December public meeting sponsored by Dominion Virginia Power to get feedback on its plans to build high power lines through Frederick Co, Warren Co, Fauquier Co and Prince William Co. The lines would run from Meadow Brook substation near Route 81 over the Blue Ridge Mountains and curving north near Haymarket towards Dulles Airport to the Loudoun substation.

The Center supports the plans for the 500,000 volt lines. Of course, the affluent communites oppose the lines based on visual impact. It is a NIMBY luxury view and does not consider the greater power needs of the region. Opponents beleive the lines will ruin the ambience of historic sites too.

Inspector General Report Says Oil Royalties Unpaid

Evidently companies operating offshore oil rigs are not pyaing billions in royalties on oil and gas from federal land and coastal waters. The report's findings:

* Since 2000, audits have declined
* The Interior Department reviews only 9 percent of all properties and 20 percent of all companies.
* The computerzied fact-checking system is inadequate.
* Government data are incomplete and inaccurate.

The eight month report was delivered as a report to Congress. (NYT)

NASA Seeks Comments on Proposed Nuke Rover on Mars

The National Aeronautics and Space Administration (NASA) has issued a Draft Environmental Impact Statement(DEIS) for public comment on its proposed Mars Science Laboratory (MSL) Mission to explore the surface of Mars using a mobile science laboratory (rover) to acquire detailed information on the habitability of Mars for life forms.

The DEIS addresses alternative and the potential environmentali impacts associated with preparations for and implementation of the proposed mission. NASA's proposed action, Alternative 1, would use a radioisotope power source consisting of plutonium (Pu-238) dioxide. Alternative 2 would use a solar array to provide power for the rover. The DEIS also discusses the No Action alternative.

Congress Approves Nuclear Power Assistance for India

Before Congress adjourned on Dec 9 they passed legislation to assistance India with civilian nuclear power production, even though such assistance is banned under the Nuclear Nonproliferation Treaty (NPT) that for nonnuclear nations that build nuclear weapons. India pursued nuclear weapons before seeking assistance from the U.S. under NPT.

Normally, the U.S. seeks to use the NPT as an incentive for nonnuclear weapons nations to pursue civilian nuclear power by agreeing to inspections of their facilities in exchange for civilian nuclear power assistance and an agreement not to build nuclear weapons. This principle has been stood on its head with India.

McKinsey Report Predicts Global Energy Usage

According to the McKinsey Global Institute, to date, the global debate about energy has focused too narrowly on curbing demand. Instead, the best way to meet the challenge of growing global energy demand may be to focus on energy productivity, which reconciles both demand abatement and energy-efficiency. According to the report, global energy demand will grow more quickly over the next 15 years than it has in the last 15. Demand could grow at a rate of 2.2 percent per year, boosted by developing countries and consumer-driven segments of developed economies. This acceleration will take place despite global energy productivity continuing to improve by 1.0 percent a year.

The McKinsey report states that no strategy can control the growth in energy consumption unless it includes developing countries. An estimated 13 percent of the growth in global energy demand between now and 2020 will come from new Chinese power plants, with Chinese vehicles and buildings adding to the load.

Congress Passes Revision of Magnuson-Stevens Act

Congress passed reauthorization of the Magnuson-Stevens Act before it adjourned on Dec 9. The bill reauthorizes the act through 2013. President Bush released the Ocean Action Plan in 2004 as his effort to make our oceans, coasts, and lakes cleaner, healthier, and more productive. President Bush also established the Northwestern Hawaiian Islands Marine National Monument, the largest single conservation area in the history of the U.S. and the largest protected marine area in the world. Enactment of a stronger Magnuson-Stevens Act was one of the top priorities of the Ocean Action Plan. The revised law seeks to:

* End overfishing of depleted species

* Establish a selling and trading of shares in a fishery to promote conservation

* Empower fishery scientists, not the fishing industry, to set fishing levels;
studying and protect deep sea corals; and

* Allows the U.S. to sanctions countries practicing illegal pirate fishing internationally.

The law also increased summer catch limits for New England flounder. The cap-and-trade program is unique and mirrors the same sort of approach in 1990 Clean Air Act Amendments Acid Rain Program. The 30-year-old law is the main legislation regulating fishery management in ocean waters between 3 miles and 200 miles offshore. S. 2012 & H.R. 5018, the American Fisheries Management and Marine Life Protection Act, sponsored by Chairman Richard W. Pombo (R-Calif.), Rep. Barney Frank (D-Mass.) and Rep. Don Young (R-Alaska)

Yucca Mountain Supplemental Environmental EIS

The U.S. Department of Energy (DOE) held a Supplemental Yucca Mountain Repository Environmental Impact Statement (EIS) public scoping meeting in Washington, DC at L'Enfant Plaza Hotel on Oct 30, 2006. The meeting was to help determine the scope of the SEIS, which will address current repository design and associated operational plans.

Since publication of the Yucca Mountain Final Repository EIS in 2002, DOE has continued to develop the repository design and associated operational plans. The comment period closed on Nov 27, 2006. Additional information can be requested at www.ocrwm.doe.gov

Dominion Virginia Power Having Trouble Siting Power Lines

The utiltiy dropped plans to run a high power line through most of Loudoun County. There are very rich and powerful people there so it is no wonder. People are such hypocrites when it comes to energy. They want to use as much as they can but do not want to be inconvenienced by even the mere sight of a tower and lines.

Dominion is planning to use the I-66 right of way but the rich horse country citizens will make it virtually impossible to build the lines anywhere. They will fund the obstructionist environmental groups to block it every else as an encroachment on scenic views. Yet all of these people probably live in large homes that gobble electricity. They probably have multiple televisions, computers and other appliances. They probably have 50 incandescent light bulbs too. Such illogical hypocricy must be challenged and overcome for the good ot the greater society.

G.E. & Hitachi Will Merge Nuclear Divisions

The two companies will merge to compete with Westinghouse (owned by Toshiba & Areva) to build the new but yet built economic simplified boiling water reactor and advanced boiling water reactor.

Hitachi will take a 40% ownership share of G.E. and Hitachi will take a 20% share of Hitachi's nuclear business. (NYT)

Robert Samuelson Is A Global Warming Genius

The Washington Post columnist is so dead on in his article, "Greenhouse Guessing," that it is scary. At first we thought he had lost his mind by criticizing the current Stern Report. But by the end of the article, you had to agree that Samuelson nailed it. Nailed fairly, squarely and scientifically.

Samuelson acknowledges global warming and agrees that something needs to be done about it. He rejects Stern's notions though that you can measure the precise economic effects based on what 'might' happen. Samuelson writes, "No one knows what [global warming's effect] might be, because we don't know how much people might adapt....Unless we develop cost-effective technologies that break the link between carbon dioxide emissions and energy use, we can't do much." Smauelson gets it.

Constellation & Areva Promote Nuclear Power

Constellation Energy Group and Areva formed a joint venture in 2005, Unistar Nuclear, to build new nuclear power plants. Unistar is considering building new nuclear plants at Calvert Cliffs, Maryland and Nine Mile Point in New York.

Areva is a Bethesda based subsidiary of French nuclear power services Areva Group. Constellation is based in Baltimore, Maryland. The new UniStar Nuclear is based in Annapolis, Maryland.

Kyoto Protocol Joint Implementation Mechanism

The United Nations Framework Convention on Climate Change (UNFCCC) has launched a new mechanism of the Kyoto Protocol expected to generate significant reductions in greenhouse gas emissions which cause global warming. With the launch of the Kyoto Protocol’s joint implementation (JI) mechanism, developed countries will be able to acquire carbon credits from greenhouse gas emission reducing projects undertaken in other industrialized countries, in particular central and eastern European transition economies.

These tradable carbon credits can then be used to meet emission reduction or limitation commitments under the Kyoto Protocol. JI will generate real projects which will help green the economies of central and eastern Europe. With its launch, we can expect emission reductions in the order of several hundred million tonnes of CO2 by the end of the first commitment period of the Kyoto Protocol. The JI is similar to the Kyoto Protocol’s clean development mechanism (CDM), which permits industrialized countries to invest in sustainable development projects in developing countries, and thereby generate tradable emission credits.

While smaller in terms of its emissions reduction potential, it is an equivalent to the CDM with regard to cooperation among countries that have targets under the Kyoto Protocol and a credible alternative to the much-feared ‘hot air.' ‘Hot air’ refers to the concern that some countries will have excess emission allowances under the Kyoto Protocol without undertaking specific efforts to reduce emissions and that they could then flood the carbon market by selling them at lower price, reducing the incentive for other countries to cut emissions.

The Kyoto Protocol presently requires 35 industrialized countries and the European Community to reduce greenhouse gas emissions by an average of 5% below 1990 levels in its first commitment period between 2008 and 2012.

Mailing Address: CLIMATE CHANGE SECRETARIAT (UNFCCC), P.O. Box 260 124, D-53153 Bonn, Germany Office Location: Haus Carstanjen, Martin-Luther-King-Strasse 8, D-53175 Bonn, Germany Media Information Office: (49-228) 815-1005 Fax: (49-228) 815-1999 Web: http://unfccc.int

Our Carbon Mercantile Exchange Is Open for Business

The Center for Environment, Commerce & Energy (the Center) has opened an emissions trading service with carbon dioxide as the main commodity. The Carbon Mercantile Exchange (CMX) is a service that allows clients to trade carbon dioxide, methane, sulfur dioxide, nitrogen oxides, and mercury. Customers can reduce their "emission footprint," the total emissions created by driving, flying, usnig electricity and other activities. CMX is easy to use and fully transparent. All transactions are open for public review. The CMX is a free on-line emissions offset clearinghouse service.

CMX can be used to complement other emissions offset programs. Our mission is to promote verifiable reductions in greenhouse and smog-forming gases. The service is open to everyone. It is a market-based system that will rely on the goodwill of the participants to conduct honest trades. The service is a dynamic portal that will serve as a gateway for innovative emissions reductions. CMX is one part of a global effort to reduce global climate change and smog in our cities.

Constellation Cancels Sale To Florida Power & Light

Baltimore-based Constellation Energy Group has terminated its proposed $10.8 billion sale to FPL Group because uncertainty over regulatory and legal issues in Maryland. The ratepayers of Maryland have been hurt by this cancellation. Size matters in the 21st Century utility sector. The sale would have created one of the largest utility companies in America. Now Constellation will have to fend for itself in compettive utility waters. The Maryland Legislature should be ashamed of itself for creating this debacle. Maryland ratepayers will pay for their folly. Are you listening Mike Miller?

FPL Group derives most of its revenue from its utility subsidiary, Florida Power and Light. Constellation operates Baltimore Gas and Electric. The deal was delayed by legislation passed during a special summer session of the Maryland General Assembly focusing on increased electric rates. The Maryland Court of Appeals ruled that the legislature wrongly fired the five members of the Public Service Commission. It let stand a measure barring the sitting commission from approving the merger. (Wash Post)

NERC Report Says Electricity Systems In Big Trouble

According to the North American Electric Reliability Council (NERC), North America's electricity system will decline unless changes are made soon. This is NERC's first reliability assessment since being named the Electric Reliability Organization (ERO) for the U.S. NERC's 2006 Long-Term Reliability Assessment Report analyzes the adequacy of electricity supply and transmission reliability in North America through 2015, and calls for actions to improve bulk power system reliability.

Demand for electricity is expected to increase over the next 10 years by 19 percent in the U.S., but confirmed power capacity will increase by only 6 percent. The transmission system requires additional investment to address reliability issues and economic impacts. The NERC report identifies 22 necessary actions that encompass all areas of the bulk power system including generation, transmission, fuel supply and delivery, and demand response. Specific recommended actions include:

* Addition of power generation facilities;
* New and upgraded transmission facilities;
* Stronger contracts and other arrangements;
* More "demand-side" measures; and
* Addressing aging workforce issues in the electric industry.

Coal Is Not Going Anywhere

All of the talk about global warming has not stopped or even slowed down the coal-fired power plant industry. They plan to build coal-fired plants just as fast as they can. A new report documents that growth: "Tracking New Coal-Fired Power Plants: Coal's Resurgence in Electric Power Generation."

The report projects 154 additional coal-fired power plants costing $137 billion to fuel 93 million homes by 2030. It gives the proposed new plants, capacity and investments by state.

Wealthy Coal Executive Hopes to Turn Democratic West Virginia Republican - NYT

Google Goes Solar

Google plans to provide 30 percent of the electricity for its Mountain View headquarters complex in California with solar power. That sounds like a reasonable target because photovoltaics have a 30 percent capacity factor. The system will use 9,200 solar cells, which could power 1,000 homes. Google is not disclosing the purchase price (photovoltaics are expensive) but estimates are around $10 million with a 5 to 10 year payback. The system is being installed by Pasadena, Calif-based El Solutions, a division of Energy Innovations.

Google will still use power from the grid provided by Pacific Gas & Electric. That is the central weakness of Photovoltaic system - - they still need grid back up. (NYT)

We Love Our Oil in America (Everywhere Else Too)

Op-Ed Columnist Robert J. Samuelson is being wasted at The Washington Post. He should be running The Nature Conservancy or ExxonMobile. He gets the energy picture in relation to American pursuits of happiness.

He opens with, "Our main energy problem is our huge dependence on imported oil." He closes with, "Because Americans want painless salvation, our politicians proffer visions that promise just that." The information in the rest of the article (linked above) is quite informative for the casual reader.

Constellation Sells Six Natural Gas-Fired Power Plants

Constellation Energy Group Inc. agreed to sell six power plants to Tenaska Power Fund LP for $1.64 billion in cash. Constellation, the parent of Baltimore Gas & Electric estimates it will net $1.5 billion and record a one-time gain of $245 million. The gas-fired plants to be sold generate 3,145 megawatts of power. The plants include:

1) High Desert plant in Victorville, Calif.;
2) Rio Nogales plant in Seguin, Texas;
3) Holland Energy in Shelby Co., Ill.;
4) Big Sandy in Neal, W.Va.;
5) University Park in Chicago, Ill.;
6) Wolf Hills in Bristol, Va.

The plants helps Constellation improve its balance sheet. The gas-fired plants did not help the competitive supply portfolio or efficiencies of the baseload coal and nuclear plants. (AP, Examiner)

BP & Shell Pay Violations of $1.5 Million for Unhealthy Gas

EPA reached settlements on Sept. 27 with BP Products and Shell, and two Shell subsidiaries Motiva and Equilon Enterprises LLC for threatening public health by producing noncompliant gasoline. EPA sets gasoline and diesel fuel standards under the Clean Air Act to reduce air pollutants such as smog, carbon monoxide and air toxics from motor vehicles. The companies, however, produced and distributed gasoline that failed to meet the regulatory requirements.

Use of noncomplying fuel in motor vehicles can cause an increase in emissions that can significantly harm public health. The settlements resolve violations of various fuel standards that occurred from 1999 through 2004 at retail outlets, terminals and refineries located throughout the U.S. A number of the violations involve the summertime gasoline standard for volatility, or tendency to evaporate, which is intended to reduce smog-causing hydrocarbon emissions. Some of the violations were self-reported by BP and Shell, while others were discovered through EPA's inspection and compliance programs.

BP agreed to pay a civil penalty of $900,000 and Shell agreed to pay a civil penalty of $600,000. BP and Shell will also perform extensive remedial efforts -- including quality assurance programs and technical changes in processes and equipment -- to correct the alleged violations and to prevent the recurrence of similar violations. (Source: EPA)