04/07/2016

'Sleeper Issue' Of Leaking Coal Seam Gas Fields May Blow Hole In Emissions Goals

Fairfax - Peter Hannam

Gas has long been touted as cleaner than coal and marketed as a "transition" fuel until the mass take-up of renewable energy becomes viable.
But a growing chorus of voices from Australia and overseas is warning that any perceived benefits could easily be lost with just small leakages.
Professor Peter Rayner from the University of Melbourne says it takes just 1-2 per cent of gas leakage for any advantage to be lost.
Queensland's coal seam gas industry now has more than 7000 wells. Photo: Saah Moles, Wilderness Society
Australia's coal seam gas industry claims its leakage is just 0.02 per cent but increased detection of leaks in the US – triggering a flurry of studies – suggest some big changes are in the winds.
US regulators this year lifted their estimate of America's annual emissions of methane – the potent gas that makes up most of natural gas – by 13 per cent with leakage from the oil and gas industry largely blamed.
While methane clouds have been detected near gasfields, it took a huge leak starting last October from a gas storage site near Los Angeles to grab media attention.
CSG has its protesters now – before fugitive emissions are known. Photo: Andrew Quilty
Thousands were forced to evacuate their homes, with the leak venting almost 100,000 tonnes of methane over 16 weeks. Methane has as much as 100 times the warming impact of carbon dioxide over a 20-year period and the release was akin to adding 500,000 cars to the roads during the event, local media reported.
While Australia's gas boom, particularly for coal seam gas, is of a much smaller scale than the US shale bonanza, many of the issues are identical. These include the lack of baseline studies to distinguish the impacts of drilling and fracking of wells from natural methane seepage.

Closer to the surface
The industry says just 0.02 per cent of the gas developed vents as methane to the atmosphere. Photo: Glenn Hunt
The uncertainties around CSG in particular "are really very large", Professor Rayner said.
"It's closer to the surface [than conventional gas] ... it's more dispersed, and the chances for something to go wrong are much higher," he said.
CSG operators such as Santos, Origin Energy and BG Group, say they have every incentive to limit leakage of the lucrative commodity from their lattice of CSG wells and pipelines.
LNG exports were worth $16.9 billion in 2014-15, APPEA says. Photo: Stephanie Kelly
According to Santos' environmental impact statement (EIS) for its $25 billion Gladstone LNG project, fugitive emissions would only be 0.1 per cent for the CSG gasfields themselves. Total emissions were just 20,000 tonnes of carbon-dioxide equivalent last year across its entire business.
"Santos meets all its regulatory requirements around emissions," a spokesman said. "We monitor, independently audit and make this data publically available in our annual Sustainability Report."
But a spokesman for Queensland's Department of Environment and Heritage Protection conceded that Santos's EIS "does not include provisions for a formal auditing process". However, the proponent is required "to document its proposed operations and how these will impact on the environment, which the department uses to "to inform the relevant permit conditions and requirements".
Chinchilla community members said the Condamine River has never bubbled with such frequency before CGS mining came to the region. Photo: Max Phillips
Even without unanticipated leakage, the surge in CNG and its processing for export markets is set to play a big role in a forecast jump Queensland's greenhouse gas emissions. The government estimates that the state's emissions will surge 35 per cent between 2014 and 2030 even as Australia is aiming to cut them.

Migratory emissions
Researchers, though, say little is understood about how drilling and fracking may create conditions for leakage through the soil long after a well has been decommissioned.
With more than 7000 CSG wells in Australia and headed towards tens of thousands, "the long-term, post-production fugitive [emissions] are certainly a sleeper issue," Professor Rayner said.
Dimitri Lafleur, a former geoscientist at energy giant Shell, said the industry has little idea of how much "migratory emissions" are making it to the surface.
"With such a vast network and thousands of wells, it is very difficult to come up with an accurate number if you don't monitor on a regular basis," said Mr Lafleur, a PhD student at Melbourne University under Professor Rayner.
"And given it is not a requirement to minimise fugitive emissions, why would you?"
Mr Lafleur is part of a team commissioned by The Australia Institute to examine how big a problem such leakage is and how it might affect Australia's national emissions targets given the industry's rapid expansion.
"No one knows what the baseline emissions are – from natural emissions from seeps, bores, for example – but I believe there is a chance that these emissions will become larger, with continued water extraction," he said. Companies remove huge amounts of water to get to the gas, depressurising the aquifers in the process.

'Social licence issue'
Political opposition to CSG has come mostly from the Greens. Labor and the Coalition generally back developments in Queensland, but have mixed views of the sector in other states such as Victoria and NSW.
NSW Greens MP Jeremy Buckingham became an internet sensation when he set the Condamine River in Queensland alight in April. Deputy Greens leader Larissa Waters, along with independent senator Gleenn Lazaus, has helped lead senate inquiries into CSG.
"Coal seam gas and fracking wells and pipes leak like a sieve, and they could be just as bad for the climate as burning coal," Greens Senator Larissa Waters said.
"As disused gas wells age and concrete casings break down, we risk further leaks for decades to come," she said. "No studies have systematically examined the deteriorations of old wells."
Fairfax Media sought comment from Environment Minister Greg Hunt and his Labor counterpart, Mark Butler.
Gas produces as much as 77 per cent more energy per molecule of CO2 than coal.
Professor Rayner said emissions issues with CSG had the potential to diminish public support for an industry already dogged with problems such as salt disposal, access to farmers' lands and interference with ground water.
If CSG is not cleaner than coal, "the whole social licence issue is brought into question," Professor Rayner said. "It becomes quite serious."

'Rivers shouldn't do that'
Locals say the bubbling of the Condamine River, which was highlighted when Greens MP Jeremy Buckingham set fire to it on Friday, is caused by a nearby CSG operation.

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Climate Change: Big Four Banks' Lending To Australian Renewables Projects Falls

The Guardian

Market Forces finds only two financing deals closed in first half of 2016 despite banks' purported support for sector
The National Australia Bank lent money to a windfarm in South Australia and both NAB and Westpac helped finance one in New South Wales. Photograph: Angela Harper/AAP
Australia's big four banks' lending for Australian renewable energy projects has tumbled in the first half of 2016, despite all of them spruiking their continuing support for the sector.
Based on public announcements from the banks and their customers, the activist group Market Forces has found only two financing deals were closed this year in the Australian renewables sector.
The National Australia Bank lent money to a windfarm in South Australia and both NAB and Westpac helped finance one in New South Wales.
Although more financing could be revealed in the second half of the year, the figures seem to show the banks have slowed their flow of money to the renewables sector in Australia.
"This is what you see when you have years of stagnation and cutting into renewable energy policy," said Julien Vincent from Market Forces.
The group has been collecting the data on financing for Australian renewable energy projects for the past eight years.
The first six months of 2016 have seen the big four banks lend only $162m to renewable projects. That is less than half the average amount loaned in all previous six-month periods since 2008 and the fifth-worst half-yearly figure in the dataset.


So far this year, according to public announcements, both the Commonwealth Bank and ANZ have not closed any deals for renewable energy projects in Australia.
Market Forces data previously showed the big four banks lent $5.5bn to the Australian fossil-fuel sector in 2015 and that the amount lent to the fossil-fuel sector was six times more than lent to the renewables sector since 2008. One bank had a ratio of 13 to one, favouring lending to fossil fuels over renewables.


When approached in February and then again in May to comment on their continuing lending to fossil-fuel projects in Australia, all four banks responded to the Guardian's questions by emphasising their lending to the renewables sector.
But Vincent said the lack of local investment wasn't entirely the banks' fault.
"This is what you get when you have years of debate about whether the renewable energy target should be cut and you have a carbon price that is cut and then you have a billion dollars taken out of the [Clean Energy Finance Corporation] to paper over cracks, trying to protect the reef," he said. "There is so little going on and so little to invest in now."
That analysis was confirmed by a spokesman for the Commonwealth Bank, who told the Guardian: "The limited number of renewable energy developments, and therefore financing opportunities in Australia, has resulted in the majority of CBA renewable financings being offshore in the last year and we have been active in both Europe and North America."
However, Vincent said the banks all had commitments to invest in renewable energy and, if government policy wasn't allowing them to do that, they should be publicly calling for change.
"They're getting credit and applause for carbon reduction and renewable energy – so where are they in the public debate?" Vincent said. "Why aren't they saying 'hey we're doing our best but there aren't enough opportunities being created'?
"They're four of the biggest and most powerful companies in Australia and if they want policies that would let them unlock this finance – which is in the tens of billions of dollars ready to deploy – then they could get them."
Vincent said it was bad news for the Australia economy, because this money was flowing overseas, with the big four banks lending to overseas renewable projects more than they were to local ones.
"We're missing a trick, where there is a huge amount of funds sitting there that the banks would certainly be able to get a lot of benefit from, in terms of reputation, if they were able to deploy that in Australia," he said.
In 2015, global investment in renewable energy grew to more than twice that in coal and gas-fired power generation, according to UN environment program figures.
In the 2014-2015 financial year, an all-time record of about US$320bn was invested in renewable energy worldwide but in Australia investment fell by 31%, with government plans to cut the renewable energy target blamed.
The Market Forces database was built from public statements and could be missing deals. But Vincent said the group had spoken with key players in the renewables sector and nobody had found financing deals that had been missed.
The banks all said they were unable to comment on specific deals that could be in the works, due to client confidentiality.
Westpac emphasised their lending to a broader category called the "CleanTech and environmental services sector", to which it lent $6.3bn in the six months to March 2016. They also pointed to their work on climate bonds and discounted loans offered to business seeking to improve their energy efficiency.
NAB told Guardian Australia they would continue to work towards their commitment "to invest $18bn over the next seven years to support the transition to a low-carbon economy".
ANZ declined to comment.

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Stem CTO: Lithium-Ion Battery Prices Fell 70% in the Last 18 Months

Greentech Media - Stephen Lacey*

"There are new markets opening up because of what we've seen in battery pricing."

Tesla's battery factory gets a lot of attention.
When completed, the so-called Gigafactory will manufacture more lithium-ion batteries each year than were produced globally in 2013.
That will help push prices further downward.
But a few other large producers -- LG Chem, Panasonic and Samsung -- are already making batteries at unprecedented scale.
 There are numerous giga-scale factories producing cells and battery packs for electric cars and stationary applications throughout Asia. And the recent wave of capacity is already impacting pricing in a big way.
According to Larsh Johnson, the chief technology officer of Stem, the company is paying 70 percent less for lithium-ion batteries than it was 18 months ago.
"It's happening. The capacity is out there," said Johnson in an interview. "The momentum continues."
Stem has installed 68 megawatt-hours of batteries for commercial and industrial applications, mostly to shave demand charges for customers that consume a lot of power in the middle of the day. Johnson said the improvement in pricing is allowing Stem to think beyond traditional demand charge management.
"There are new markets opening up because of what we've seen in battery pricing," he said.
Traditional demand management typically requires systems that discharge for 1 to 2 hours. Stem is now getting customer requests for systems that can provide 4 or more hours of storage to support grid management services, such as frequency regulation or load-shifting to support renewable energy integration. The company is also looking at a broader geographic range, which includes Texas, Germany and Ontario.
The energy density of lithium-ion batteries continues to improve as well, helping vendors improve performance without adding new costs. "Double-density batteries are important," said Johnson.
As battery costs go down, more hours of storage can be packed into the same battery.
"I'm not surprised that customers are asking for 4-hour duration systems," said Ravi Manghani, director of GTM Research's storage practice. "As soon as you start using storage for something beyond demand-charge management, you're looking at a multi-hour project."
Many utilities looking to aggregate behind-the-meter storage services in New York and California are requiring more than 4 hours of discharge. And it's getting cheaper to provide that level of service every month.
There are a couple of reasons for the 70 percent drop in pricing. Expansion of worldwide production capacity played a role. Since much of the new capacity was designed for electric vehicle demand that never materialized, stationary storage vendors are getting a better deal.
According to the National Renewable Energy Laboratory, there was a total of 53 gigawatt-hours of lithium-ion cell production capacity in 2015 -- but only 40 percent of that was utilized.
Stem's large purchase orders give it an advantage as well. Of the 70 percent price improvement reported by Stem, Manghani estimates that roughly 40 percent comes from oversupply, and another 30 percent comes from bulk ordering.
Johnson said that Stem is expecting a similar drop in pricing over the next 18 to 24 months. He wouldn't give any exact numbers on pricing, however.
"We're trying to balance our purchasing decisions with this continuing price decline," he said.
By 2020, GTM Research expects average lithium-ion battery costs to hit $217 per kilowatt-hour. "But we're already starting to hear numbers in the $200 to $250 per kilowatt-hour range," said Manghani. And Tesla may already be well below those numbers, say some analysts.

*Stephen Lacey is the Managing Editor at Greentech Media, where he reports on energy efficiency, solar and grid modernization. He is also host of The Energy Gang podcast, a weekly audio digest of cleantech news.

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Bionic Leaf Turns Sunlight Into Liquid Fuel

Harvard Gazette - Peter Reuell

New system surpasses efficiency of photosynthesis
A new "bionic leaf" system uses solar energy to produce liquid fuel. Jessica Polka/Silver Lab
The days of drilling into the ground in the search for fuel may be numbered, because if Daniel Nocera has his way, it'll just be a matter of looking for sunny skies.
Co-creator of the new system Harvard researcher Daniel Nocera. Rose Lincoln/Harvard Staff Photographer 
Nocera, the Patterson Rockwood Professor of Energy at Harvard University, and Pamela Silver, the Elliott T. and Onie H. Adams Professor of Biochemistry and Systems Biology at Harvard Medical School, have co-created a system that uses solar energy to split water molecules and hydrogen-eating bacteria to produce liquid fuels.
The paper, whose lead authors include postdoctoral fellow Chong Liu and graduate student Brendan Colón, is described in a June 3 paper published in Science.
"This is a true artificial photosynthesis system," Nocera said. "Before, people were using artificial photosynthesis for water-splitting, but this is a true A-to-Z system, and we've gone well over the efficiency of photosynthesis in nature."
While the study shows the system can be used to generate usable fuels, its potential doesn't end there, said Silver, who is also a founding core member of the Wyss Institute at Harvard University.
"The beauty of biology is it's the world's greatest chemist — biology can do chemistry we can't do easily," she said. "In principle, we have a platform that can make any downstream carbon-based molecule. So this has the potential to be incredibly versatile."
Co-creator of the new system Harvard researcher Pamela Silver. Rose Lincoln/Harvard Staff Photographer
Dubbed "bionic leaf 2.0," the new system builds on previous work by Nocera, Silver, and others, which — though it was capable of using solar energy to make isopropanol — faced a number of challenges. Chief among those, Nocera said, was the fact that the catalyst used to produce hydrogen — a nickel-molybdenum-zinc alloy — also created reactive oxygen species, molecules that attacked and destroyed the bacteria's DNA. To avoid that, researchers were forced to run the system at abnormally high voltages, resulting in reduced efficiency.
"For this paper, we designed a new cobalt-phosphorous alloy catalyst, which we showed does not make reactive oxygen species," Nocera said. "That allowed us to lower the voltage, and that led to a dramatic increase in efficiency."
The system can now convert solar energy to biomass with 10 percent efficiency, Nocera said, far above the 1 percent seen in the fastest-growing plants.
In addition to increasing the efficiency, Nocera and colleagues were able to expand the portfolio of the system to include isobutanol and isopentanol. Researchers also used the system to create PHB, a bio-plastic precursor, a process first demonstrated by Professor Anthony Sinskey of MIT.
The new catalyst also came with another advantage — its chemical design allows it to "self-heal," meaning it wouldn't leach material into solution.
"This is the genius of Dan," Silver said. "These catalysts are totally biologically compatible."
Though there may yet be room for additional increases in efficiency, Nocera said the system is already effective enough to consider possible commercial applications, but within a different model for technology translation.
"It's an important discovery — it says we can do better than photosynthesis," Nocera said. "But I also want to bring this technology to the developing world as well."

Working in conjunction with the First 100 Watts program at Harvard, which helped fund the research, Nocera hopes to continue developing the technology and its applications in nations like India with the help of their scientists.
In many ways, Nocera said, the new system marks the fulfillment of the promise of his "artificial leaf," which used solar power to split water and make hydrogen fuel.
"If you think about it, photosynthesis is amazing," he said. "It takes sunlight, water, and air — and then look at a tree. That's exactly what we did, but we do it significantly better, because we turn all that energy into a fuel."

Note: This work was supported by the Office of Naval Research, Air Force Office of Scientific Research, and the Wyss Institute for Biologically Inspired Engineering. The Harvard University Climate Change Solutions Fund is supporting ongoing research into the bionic leaf platform. 

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