UK to enter CCS race

22 March 2007 - The UK can be the birthplace of the world’s full scale Carbon Capture and Storage (CCS) demonstration plant, UK Trade & Industry Minister Alistair Darling said yesterday.

Following the announcement in the Budget of a competition to build a full scale CCS demonstration plant in the UK, the Secretary said; “Gas and coal are important to the energy mix globally and in the UK. Fossil fuels may still make up half of the world’s energy supply in 2050.”

“CCS has the potential to reduce CO2 emissions from fossil fuel power by up to 90% (a recent German study says 78%, red.). And contribute 20% of global CO2 mitigation by 2050.”

“Rapid deployment of CCS technology in growth economies such as India and China will be vital. This competition gives innovative UK industries the opportunity to become the leading exporters of CCS technology for the low carbon age.”

The Minister didn’t mention the Norwegian test site in Mongstad, where a gas fueled plant will be equipped with CCS as well.

More information

DTI Press Release

'One third of Irish power in 2020 will be renewable'

One third of electricity consumed in Ireland will come from renewable energy sources by 2020, said Natural Resources Minister Noel Dempsey. Last week the Irish government unveiled plans to become less dependent on power imports and to secure Ireland’s energy supply.

Wind energy is expected to be the driving source to reach the goal of a renewable electricity share of 33% by 2020. “Wind energy will provide the pivotal contribution to achieving this target”, the Government said its policy paper ‘Delivering a Sustainable Energy Future for Ireland’, also called The Energy White Paper 2007.

The White Paper describes the actions and targets for the Irish energy policy framework until 2020, to support economic growth and meet the needs of all consumers. The Paper sets a path for meeting the goals of ensuring safe and secure energy supplies, promoting a sustainable energy future, and supporting competitiveness.

More information

Website Natural Resources Department Ireland

Italy adopts new legislation on CHP plants

20 March 2007 - At the beginning of March the Italian government brought into force a new legislative Decree (20/2007) on Combined Heat and Power (CHP). The Decree transposes the European Directive on the promotion of cogeneration based on a useful heat demand in the internal energy market.

The purpose of the Decree is to increase energy efficiency and to improve security of energy supply by creating a framework for promotion and development of high efficiency CHP based on heat demand and primary energy savings. The Decree regulates an easier permitting procedure and the opportunity to generate Guarantees of Origin (GoOs).

A GoO can be issued when electricity production exceeds 50 MWh. Each GoO specifies the following:

• place of production;
• type of technology;
• fuel source and the monthly quantity from which the electricity was produced;
• monthly quantity of electricity from high electricity cogeneration;
• calorific value of the fuel source;
• use of the heat generated together with the electricity;
• primary energy saving.

Gestore Servizi Elettrici GSE is responsible for issuing the GoOs.

More information:

European Directive 2004/8/EC

Q7 windpark: 'Deal of the Year'

The Q7 windpark, which is under construction off the Dutch coast, was awarded the Euromoney Deal of the Year on 10 March for its innovative financial construction.

Q7 is the first ever windpark to be financed by banks (Dexia, Rabobank and BNP Paribas) which rely solely on the project to generate revenues for the repayment of the financing. This is an important milestone in the development of offshore windparks, say the shareholders.

Shareholders are energy company ENECO, sustainable energy firm Econcern and EIH (Energy Investment Holding).

The debt financing includes a 189 million Euro loan (11 years long-term finance facility) and a 30 million Euro standby facility to cover contingencies. The total investment amounts to 383 million Euros.

The 120 MW offshore windpark Q7 is located 23 kilometres off the IJmuiden coast. It comprises 60 Vestas 2 MW wind turbines. It is expected to be completed by March 2008 from which date it will produce approximately 400 GWh per year electricity, enough to supply 125,000 households.

More information:

Q7 website

Italy starts emissions trading market on 2 April

Gestore Mercato Elettrico (GME), the Italian authority responsible for the transactions in the electricity market in Italy, will manage the market for greenhouse gas emission credits in Italy. The trading market will start on 2 April 2007.

The introduction of the emissions trading market in Italy involves the transposition of the European Directive 2003/8/EC into Italian national law. Directive 2003/8/EC aims to establish a scheme for greenhouse gas emission allowance trading within the EU Emissions Trading Scheme, known as EU ETS. National markets for buying and selling emission credits will facilitate the achievement of the planned emission reductions.

GME’s electronic platform manages spot trades of EUAs (European Union Allowances) for the first (2005-2007) and second (2008-2012) phases of the EU ETS. The platform is also designed for the trading of credits accrued from CDM (Clean Development Mechanism) and JI (Joint Implementation) projects, two of the flexible mechanisms under the Kyoto Protocol.

Making geothermal energy cheaper

The US Geothermal Resources Council has presented a ‘best paper award’ to a study by associate professor Dina Lopez from the Ohio University on the impact of silica scaling on geothermal plants.

Silica is released from dissolving rock and it is a common element found in water. After hot water is pumped up from geothermal wells, the water cools and the silica precipitates, forming hard glassy deposits that clog pipelines and injection holes at geothermal plants.

The Lopez study (dating from 2005) combines findings from several other studies with field work and modelling programmes to provide indicators of the impact on silica scaling in geothermal wells. Lopez hopes the study will help guide efforts to control silica scaling, which may help reducing the maintenance costs of geothermal plants.

Geothermal energy is a promising renewable energy which harnesses heat from the Earth’s core to provide heat and/or electricity. Despite its potential in suitable locations, geothermal energy is one of the least known renewable energy sources.

More information:

Webnews Ohio University: “Geologist troubleshoots silica problem at geothermal plants”.

Travels by Dina Lopez.

Carbon Fund Europe launched

21 March 2007 – The European Investment Bank (EIB) and the World Bank have launched the Carbon Fund for Europe (CFE), a trust fund worth 50 million Euros set up to help countries meet their Kyoto and ETS obligations.

The fund is made up by Ireland, Luxembourg, Portugal, the Flemish Region and the Norwegian sustainable energy producer Statkraft. The countries all are predicted to fall short of their Kyoto obligations. The Statkraft enterprise believes emission trading will make good long term business.

The CFE is now looking for suitable CDM or JI projects to invest in. Suitable projects should have clear implementation plans and an operational start date. The minimal annual reductions volume is 100,000 tons of CO2 equivalents.

The CFE will be the tenth carbon fund managed by the World Bank, which altogether total more than 1,400 million Euros.

More Information:

Carbon Finance at Worldbank

EIB Press Release

Czechs struggle with renewables target

The Czech Republic is working hard to achieve 8% share of renewable energy sources by 2010. But it is still in doubt as to the 20% target by 2020, says a Ministry spokesman.

Tomas Bartosky, spokesperson for the Czech Ministry of Trade and Industry writes: “The Czech Republic is currently working at meeting the indicative goal in the amount of 8 per % of energy production from renewable resources by 2010. The present rate of the production from renewable resources moves around 4%. A majority of it is being generated in the water power plants but their potential is almost fully exhausted.”

Prior to the Energy Summit in Brussels, the Czech Prime Minister Topolánek said that it would be impossible to attain an increase up to 20% renewables by 2020 in only 13 years for the Czech Republic. Topolánek only agreed to the targets after Commissioner Barroso had assured him that national shares will be proposed by the Commission.

According to spokesman Bartosky, the Czech Republic does have a substantial potential for biomass, but the agricultural sector has not yet been capable to produce the energy biomass in such an extent to allow sufficient and regular supplies.