The Australian ETS and U.S. Cap and Trade should include soil carbon and energy efficiency offsets

In Australia, Malcolm Turnbull announced the Opposition Government’s Green Carbon Initiative on Saturday 24^th of January at the young Liberals Convention in Canberra.The Turnbull plan for combating climate change is basically a two pronged approach to reducing greenhouse gas emissions (GHG). Firstly it involves “a comprehensive bio-carbon strategy investing in the health of our landscape, restoring soil carbon by reversing over-grazing and excessive tillage, embedding CO2 in bio-char (charcoal fertilizer), tree planting, and re-vegetation” and the second prong is to “dramatically increase energy efficiency, especially in buildings”. This plan has the support of globally renowned Scientist Tim Flannery on the use of soil carbon as a major way to draw down existing carbon from the atmosphere.

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UPDATE: SATURDAY 25^TH OCTOBER 2008: THE FIRST CURVED FOLDING IS PERFORMED BY INDUSTRIAL ROBOTS

Expect more updates as we progress the technology; a demonstration day will be organized in the next few weeks…Videos of the fold are up on the web on youtube:

Original blog posting - Written by Karla Bell on Wednesday, 23 July 2008

Efficient car manufacturing using curved folding technology
The efficient manufacture of vehicles will be essential and “Curved Folding” developed by Gregory Epps, recently graduated from the Royal College of Art, Industrial Design Engineering Department in London maybe the technology that allows vehicle manufacturing set-up to become flexible, fast, efficient and cost effective.  Curved folding eliminates the need for expensive retooling with each vehicle type, the largest expense in car manufacturing. Gregory Epps said in an article published in Eureka Magazine by Tom Shelley 13th of August 2007, that, “Apart from doing away with the need for press tools – which typically represent 70% of car body panel costs – the curved folding methodology produces parts that cannot be produced by pressing”.

In the future vehicles will utilize a variety of fuels such as: ethanol, electric-petroleum, natural gas, bio-diesel or hydrogen. Car companies will have to produce a range of vehicle running on different fuel types. Vehicle manufacturing will need to become flexible and adaptable to produce the range of small, medium and large vehicle in whatever fuel source is available.  Tom Shelley further noted that, Epps said that, “By manipulating sheet metal with robotic arms, complex sheet metal forms can be created, with curving folds that avoid the need for press tools.  While applications are mainly seen in low production run automotive body panels at present, the technique could be applied to anything made out of sheet metal.  “His professed goal now is to take the method and turn it into an industrial process – To do this, Epps has been developing technology that will put the process into the grippers of industrial robots.  “Once computer modeling is used to predict the behavior of the deformed sheet so that it can be guaranteed to deform as required, it becomes a rapid manufacturing system, he points out, and one that could be used to produce one-offs, or many-offs, without the need to fabricate press tools.  With pressing, you are limited to a minimum draft angle, to be able to get the tool and panel apart,” Epps explains. “But with curved folding, you can make an enclosed volume. One of the interesting things about this method is that it is possible to use it to make parts that crumple in a predictable way, so you could make safer cars.”

The New Zealand Emissions Trading scheme, which has included the transport sector ahead of other EU countries could take advantage of radical new plans put forward by Shai Agassi, an Israeli who has developed an audacious plan to put electric cars on the road in Israel and Denmark.  New Zealand a small nation could easily adopt a similar plan.

In early June, Israeli President Simon Peres, told Wired’s Daniel Roth that Israel was going to declare complete energy independence and the Better Place rollout in partnership with Renault developed by Shai Agassi was part of that solution.

Agassi has made bold statements in his interview with Wired magazine 9^th of September O8, that the solution to oil consuming, C02 consuming cars was to get rid of them. He states, that, “the internal combustion engine had to be retired. The future is in electric cars.

He has come up with a strategy for deploying electric cars, rather than an innovation technologically to improve battery performance. Essentially the problem of batteries is the same as it ever was, he said “”Car batteries are still heavy and expensive, don’t last long, and take forever to recharge”.

Agassi, has developed a strategic plan for deployment that uses software, networks and mobile phone style plans for re-charging electric cars using a network of distribution points thereby solving the problem of battery life.

Shai Agassi was Head of Products at SAP, the world’s largest maker of enterprise software, Agassi came into SAP, when SAP bought a small-business software company he started with his father. He is now the CEO of Better Place. The experience at SAP in IT software has led to the innovation at Better Place a Climate Change IT technology crossover, which is happening more frequently in carbon solutions. It is intriguing.

Agassi dealt with the battery issue as part of the solution.

“Previous approaches relied on a traditional manufacturing formula: We make the cars, you buy them. Agassi re-imagined the entire automotive ecosystem by proposing a new concept he called the Electric Recharge Grid Operator. It was an unorthodox mash-up of the automotive and mobile phone industries. Instead of gas stations on every corner, the ERGO would blanket a country with a network of “smart” charge spots. Drivers could plug in anywhere, anytime, and would subscribe to a specific plan-unlimited miles, a maximum number of miles each month, or pay as you go-all for less than the equivalent cost for gas. They’d buy their car from the operator, who would offer steep discounts, perhaps even give the cars away. The profit would come from selling electricity-the minutes”.

“There would be plugs in homes, offices, shopping malls. And when customers couldn’t wait to “fill up,” they’d go to battery exchange stations where they would pull into car-wash-like sheds, and in a few minutes, a hydraulic lift would swap the depleted battery with a fresh one. Drivers wouldn’t pay a penny extra: The ERGO would own the battery”. Agassi stated.

His video of his plans is attached.

New Zealand could also take advantage of other plans being developed around existing hybrid vehicles like the Toyota Prius by Australian companies. See www.Greentomatocars.net

On the face of it, the New Zealand Climate Change (Emissions Trading and Renewable Preference) Bill passed on September 11 looks good. It is broader, covering more sectors than the first cut of the European Union Emissions Trading Scheme and UK Emissions Trading Scheme as it brings in early the transport and the utility sector under a regime that sets limits on the amount of greenhouse gases they can emit.

Planet Ark noted that, the New Zealand scheme is the “the first national cap-and-trade scheme outside of Europe”, joining 27 other nations that have adopted Climate Change bills. The bill was passed into law on a 63-57 vote in parliament, a relatively slim majority. Those that breach their limit will have to buy credits from users that produced emissions below their ceiling.

The New Zealand trading scheme phases in the less difficult sectors first across the economy such as emissions from forestry from 2008, transport by 2009, stationary energy such as coal-fired power stations by 2010 and agricultural waste by 2013.

The New Zealand emissions trading scheme will include liquid fossil fuels used in transportation beginning in 2011, and covers gasoline, diesel, aviation gasoline, jet kerosene, light fuel oil, and heavy fuel oil. Emissions from fuel used for international aviation and marine transport are exempted from the scheme, consistent with the Kyoto Protocol.

In Europe, the transport and power sector are where the big emissions are, whereas in New Zealand, the converse is true. About 60 percent of New Zealand’s power comes from hydro-electricity, while agricultural emissions, such as methane from livestock, comprise about 50% of the nation’s total greenhouse gas emissions, so this is no doubt why the agricultural sector is planned to be tackled last.  I am not up on the best ways to reduce methane emissions from livestock, but last time I looked at this sector, there were mostly plans afoot for flatulence pills in animals. Eating less meat did not seem like a likely solution as this would affect New Zealands exports. See the New Zealand government’s agricultural research efforts on agricultural emissions.

So paradoxically, transport is easier to do in New Zealand and the government is making a meal of this fact. It states the transportation sector accounts for 19.2% of New Zealand’s CO₂emissions. This sounds fantastic except this number needs to be looked at closely as there are 6 greenhouse gases that trap heat more powerfully than CO_2. They are usually referred to as CO₂ e (equivalents). Methane (CH₄) is one of the gases produced from livestock and is 21 times more powerful than CO₂ in trapping heat. So the overall number needs to be what percentage is the transport sector of all greenhouse gas emissions, my guess is it is probably half of 19.2% around 9.6%, so tackling transport in New Zealand is easier than Europe.

There is a positive here and that is if NZ is prepared to tackle transport emissions it could very easily embrace the Israeli model and become totally independent of oil from transport and develop models for use by other countries. See my next blog coming.

I understand that all countries have to get their Climate Bills through parliament. Australia is a long way from a vote and is still going through various consultative processes, Green papers followed by white papers. Australia is also an export oriented economy, with top heavy emissions from just one or two major sectors. The juggling act for countries is how to include the sector that produces most of the emissions and is the mainstay of the economy.  In the case of Australia the mining and energy sector are increasingly our major export earner, the drought partly due to climate Change has reduced exports from agriculture.

The USA will no doubt have a very complex process, if as both candidates Senator Obama and McCain say they intend to pass national Climate Change legislation, Kyoto compliant or not. (In other words will the US come up with their own Bill outside of the Kyoto accord).

The positive side of the US economy is that its exports are not so resource intensive such as raw materials, energy and agriculture. The domestic economy, which is very broad-based is powered by oil in transport and coal for energy. This is the US problem but it is a problem they have control over.

However, if the U.S could embrace alternative sources of energy and energy efficiency for power generation, and alternative transport fuels, they could find themselves in a much better place than export oriented economies.   See the US Climate Plans from Senator Obama and Senator McCain.

See Senator McCain proposed Climate Bill. and Senator Barack Obama proposed Climate Bills.

I am speaking today with Vince Memmott, Founder and President of Hydrogen Economy LLC, which is working to commercially develop a High Temperature Steam Electrolysis (HTSE) technology that was developed by Ceramatec, a Salt Lake City technology company, and Idaho National Lab (INL).

At GHGblog.com I am interested in technologies that lead to real breakthroughs.

Vince believes HTSE can be used for a variety of uses to produce hydrogen for commercial uses as an alternative method to making hydrogen through steam-methane (natural gas) reforming (SMR).

HTSE can replace conventional methods of creating hydrogen, a feedstock in the petroleum refining industry, the ammonia industry and eventually as a source of hydrogen for motor vehicles. It could make the need for carbon capture from coal fired-power stations obsolete and it works well with renewable technologies producing carbon neutral hydrogen.

Q1: GHGblog.com:

What is High Temperature Steam Electrolysis (HTSE)

A: Vince Memmott:

A water molecule can be separated into its atomic constituents of hydrogen and oxygen using electrical energy.  This is referred to as water electrolysis.  Normally water electrolysis is quite energy inefficient.  The hydrogen that is recovered only contains about 75% of the energy that is required for its production through electrolysis.  High Temperature Steam Electrolysis performs this electrolysis process using steam at temperatures in excess of 600 degrees Centigrade.  At this elevated temperature, the electrolysis process is considerably more energy efficient.

Q2: GHGblog.com:

What are the main uses of HTSE?

A: Vince Memmott:

The most obvious use of HTSE is to produce hydrogen for commercial use.  The demand for hydrogen is growing rapidly in the United States and in the world.  In the United States the largest consumer is the petroleum refining industry where hydrogen is an essential feedstock in producing clean fuels and in converting heavier crude oil to clean fuels.  This demand for hydrogen is growing as cleaner fuels are mandated and as crude oil feedstocks trend heavier.  Worldwide, the largest hydrogen consumer is the ammonia industry which feeds fertilizer production.  Fertilizer demand is expected to grow as the world works to increase its food supply.

There is also considerable interest in migrating to hydrogen as a motor vehicle fuel because of its clean burning characteristics.  Such a migration will significantly increase the demand for hydrogen production.

Unfortunately, hydrogen is not found in any meaningful quantity in nature and must be produced.  Hydrogen is currently produced in commercial quantities by steam-methane reforming (SMR).  This requires significant quantities of natural gas.  Natural gas is used as the source of methane and is commonly used to produce the steam.  Increased hydrogen production will put additional pressure on the already tight supply of natural gas.

Another exciting use for HTSE is the co-electrolysis of steam and carbon dioxide.  In this mode, a mixture of steam and carbon dioxide is electrolyzed to oxygen and a mixture of hydrogen and carbon monoxide referred to as syngas.  Syngas is used commercially to produce a number of valuable products, including synthetic petroleum.  Co-electrolysis could be used in conjunction with coal fired power, or any industry that produces carbon dioxide, to convert carbon dioxide to syngas, thereby reducing the emission of carbon dioxide.  Hydrogen Economy LLC believes that this application can be developed to provide a superior alternative to sequestration of carbon dioxide for carbon management.

Q3: GHGblog.com

Could HTSE be used as an alternative to carbon capture popular in countries where coal - fired power stations are still being built especially in the UK, China and Australia?

A: Vince Memmott:

Yes, HTSE can be used to convert carbon dioxide into useful products rather than sequestering it deep below ground.  It provides an opportunity to significantly reduce the carbon emissions from power plants and any other industry that generates carbon dioxide.

Synthetic petroleum can be produced from Syngas using Fischer Tropsch synthesis technology.  HTSE can be commercially developed to provide a superior alternative to sequestration of carbon dioxide for carbon management.

While carbon management using HTSE can be economical under these conditions, if carbon free electricity is used, synthetic petroleum can produced from this technology without carbon emissions and will therefore result in a net reduction of carbon emissions.

Q4: GHGblog.com

What is the cost of High Temperature Steam Electrolysis (HTSE) technology?

A: Vince Memmott:

Because HTSE uses electricity, its cost is highly dependent upon the cost of electricity.  Our current economic model shows that at a power cost of $70 (US) per megawatt hour, hydrogen production from HTSE will compete favorably with hydrogen production from SRM.  At $70 (US) per megawatt hour, synthetic petroleum can be produced at about $100 (US) per barrel.  $70 per megawatt hour is a reasonable power cost basis.  Current estimates for new nuclear power are in the range of $50 per megawatt hour.  Alternative energy costs are typically higher than nuclear power, but these sources will be evaluated on a case by case basis.

A particular opportunity exists for utilizing off peak power.  Most power plants adjust their power output to meet the daily demand cycle of the power grid.  When integrated with HTSE, the power plant could operate at a constant output.  As the grid demand drops, power would be diverted to the HTSE module.  Such off-peak power is normally considered less expensive making HTSE even more economically attractive.

Q5: GHGblog.com.

How does HTSE compare in cost to carbon capture?

A: Vince Memmott:

It is difficult to compare the cost of HTSE to carbon capture and sequestration.  HTSE produces useful products from carbon dioxide while carbon capture merely removes carbon dioxide from the carbon cycle.  Perhaps the best way to determine the economic value of HTSE is to compare the cost of its products to the market alternatives.  As I mentioned earlier, synthetic petroleum can be produced for about $100 (US) per barrel.  In today’s world this is an economically attractive use of HTSE technology.

Q6: GHGblog.com

Can HTSE be used with renewable technology as well?

A: Vince Memmott:

HTSE can be integrated with any source of steam and electricity.  When power from nuclear, wind, solar thermal, geothermal or any other source of carbon free electricity is used, hydrogen produced from this technology can be certified as “carbon free” production.

Q7: GHGblog.com

What stage of development is HTSE?

A: Vince Memmott:

This technology has been proven through a rigorous bench scale testing programs.  Ongoing bench scale tests are continuing to improve this technology.  We are currently beginning the effort to commercially develop this technology.  This will require converting the bench scale experience to a commercial scale production facility.

Q8: GHGblog.com

Are you looking for further investment?

A: Vince Memmott:

Yes, Hydrogen Economy LLC is seeking capital for the commercial development of HTSE.  We are also looking for strategic corporate associates to participate in this development.  We believe that there is a significant opportunity to license this technology worldwide.

Q9: GHGblog.com

How do people contact you?

A: Vince Memmott:

I can be contacted at vmemmott@gmail.com.

The comments on Marguerite’s blog echo my thoughts.

What is the plan for weaning us off our dependence on oil and will car manufacturers start making vehicles that use alternative fuels? How does that dove-tail in with his plans for the middle-east? The world community needs to know what is Barack Obama’s plan.

Then on Bloomberg, Andy Grove has another take on the debate over Barack Obama’s energy strategy.

Andy Grove of Harvard Business School and former head of Intel Corp is unimpressed with the energy policies of the leading presidential candidates, Republican Senator John McCain and Barack Obama. Grove maintains the most important issue is getting away from the dependence on oil, not moving to renewable energy by 2018, as recommended by Al Gore which `is addressing the second most important problem,” Grove said.  (more…)

The Australian Worker’s Union, AWU National Secretary Bill Shorten - 22 December 2006, The Age, supported the development of an Australian owned and built hybrid car, because we don’t make any version of the hybrid in Australia. Now with the price of fuel rising everyday and likely to reach $8.00 a litre by 2018, it would seem like a good time to take up Bill Shorten’s suggestion to support the Australian manufacturing industry. He estimated the based on “Toyota’s plant in Georgetown, US, it woudl cost $20 million and take less than a year to reconfigure a production line in Australia that could produce 48,000 hybrids annually.” Seems to me like the time for that idea to gain support has arrived.