After reading the
entire text of a lecture which Patrick Moore, former director of Greenpeace
gave in London England on Oct 15th (see http://www.thegwpf.org/patrick-moore-should-we-celebrate-carbon-dioxide/
), I have to show the other side of CO2 emissions. From his lecture
I learned a few new facts but already knew that the earth is colder than 50
million years ago, that some plants grow better at elevated CO2 levels and
that volcanoes lately only contribute 1% to the CO2 emissions. He concentrates, on plants without looking sufficiently at potential human
suffering. He believes that, under the influence of the UN and the IPCC,
scientists only look at how the CO2 levels are influenced by humans during
the last 2 centuries. He does not pay enough attention to what scientists say
about rising sea levels 120 000 years ago .when
the earth was approaching the same warmth. I will counter his views with articles hyperlinked on this blog and add a number of significant
developments related to climate change.
For first time readers I let you know that early in 2013 I discovered how Canada’s oil
exports were suffering from pipeline delays causing a $ 20-30 billion dollar
revenue loss in 2012. Later on it was confirmed to be $24 billion. It was partly
caused by Mr Harper’s objection to a national carbon tax and Enbridge’s
reluctance to tell the public how the disasters in the US were caused and how they
could be prevented. The problems I found are recorded in post 1. Mainly due to
rail transport the losses have been decreased to $ 15 billion per year prior to
the price crash. Since 2013 I kept on looking for interesting articles about carbon
tax and related subjects, which I recorded as well.
Citing references
on the blog I will not only show the other side of Mr Moore’s story but also how
important taxing of carbon has become. It not only discourages the use of
fossil fuel but can also finance badly needed carbon capture and storage (CCS).
With an example I will show that the average politician does not has the time
to get involved with the details of climate change, while the media releases a lot about the effects but rarely
covers the main cause. I will also list the energy return on investment EROI of
energy sources, showing how profitable wind power has become and the improved
efficiency of the Canadian oil sands. I will also comment on the safety and longevity
of railroad transport, why in particular the coal industry is against a badly
needed global carbon tax and the prospects of establishing refineries in Canada
to keep more jobs at home. Here are my observations:
A
Mr Moore’s line of thinking
When you look at
the third graph on post 24 you will see that during the last 400,000 years the
CO2 level went during the three previous ice ages up and down
between 180 ppm and 300 ppm. Enough plants survived each time when levels
dropped to 180 ppm. Since volcanoes lately only contribute 1% to the CO2 supply,
Mr Moore feels we should keep on burning fossil fuel. As you can see that is
not yet necessary because since 1950 we pushed the level up to 30% higher than
it ever was in those 400,000 years.
Following the
previous ice age sea levels rose to 9 metres above present levels. That is not
only mentioned by Dr Hanson but confirmed by my brother who wrote a paper about
pre-historic tide lines in the Netherlands.
Seeing how much ice is still around, ready to melt, a similar rise in
sea level can be expected. Fortunately
we can postpone, or possibly eliminate such rising sea levels. During the 9
meter rise there were no people around. People prefer to live near the sea.
Probably the earliest to be flooded were those who lived when Great Britain was
still part of the continent. When you google “doggerland” you will be directed
to Wikipedia, which shows with maps how those people had to endure a megaflood
causing a sea level rise of 1.5 metres in 2 years time. When you google “Lake
Agassiz”, which caused the megaflood you will find the history of 8 megafloods.
Thanks to the watchful eyes of scientists we are assured that none of that
magnitude will reoccur. When you read Dr Hansen’s article referred to on post
24 you can see that future sea level rise has been underestimated and that it won’t
be linear.
Despite good
progress in developing green energy, the demand for fossil fuel keeps rising
because the population increases and the demand per person goes up. Without
carbon capture and storage (CCS) we may be going faster towards that 9 meter
sea level rise than would have happened without extra human emissions. From the
fourth graph on post 24 you can see that human emissions started rising in
1850, just after the start of the industrial revolution. As documented in point
G) of post 24, CCS from the air will also be required. Fortunately that is
already in the development stage. So far most captured CO2 has been
pumped in liquid form a few kilometers deep underground, where, due to soil
pressure, it stays liquid. New methods of storage are being developed and it
will all be available some 100,000 years from now when we are cooling down
again towards the next ice age and have to give some more CO2 to the
plants to keep them fresher than before. Maybe there will be enough to prevent
another ice age.
B
How much do politicians know about climate change?
Since the media
concentrates on the effects of climate change and seldom mentions the causes
the average politician can only get informed via the internet, if they have the
time to do it. This is best illustrated by what happened just prior to the
Canadian Federal election in Kamloops BC. (post 24, point E) The conservative
candidate said during a radio interview that only !.5 % of the global warming
was caused by humans. He got flak from his opponents and one provincial MLA. They all mentioned obvious signs of
climate change but none of them mentioned that since 1950 humans raised the CO2
level in the air to 30% higher than it ever has been in 400,000 years and that
emissions started rising shortly after the industrial revolution began.
C
Cost of green energy versus that from fossil fuels
Coal is by far the
cheapest source of fossil fuel energy. The US is a major producer, also a major
user and therefore has a tough time to introduce a carbon tax. As shown in post
12 some oil companies want a carbon tax but the coal industry is dead against
it. Wind power is the cheapest source of green energy and even cheaper than
natural gas. Alberta has for years been
vilified because our oil requires so much energy to extract it and it creates
horrible tailings ponds. Much has changed and we can use green energy as soon
as a global carbon tax is in place. As shown in D) below, following acceptance
of a global carbon tax we will be able to transfer vast amounts of surplus
green electricity from British Columbia to Alberta. A carbon tax will also encourage
more solar and wind power development in Alberta. Apart from that, the oil
industry may soon increase recovery via the toe to heel air injection process
(THAI). It will almost double the energy return on investment ( EROI). As can
be seen from the figures below we are doing much better than oil obtained from
shale and will certainly be better than what some people hope to recover from
the vast offshore arctic reserves. It is ironic that President Obama cancels
the Keystone XL pipeline based on our “dirty oil” while the US keeps producing
much dirtier shale oil.
The EROI is
explained by Ajay Gupta and Charles Hall. They emphasise that the return on
investment varies widely with quality and location. Also oil and natural gas
are lumped together because it often is extracted by the same companies. While
a lot is presented as a range and in particular the hydro has a large range, the
averages figures below show how much energy is obtained from an input of
1: Hydro 139, coal 50, wind 25, oil and
gas 18, wave/tidal 15, oil sands toe to heel air injection process 9, geothermal
7.5 nuclear 6.5, solar 6.5, oil sands
conventional without cost of land
restoration 6, oil sands conventional
including cost of land restoration 5, shale oil 3.5, corn ethanol I.5
The figure for
hydro power is so high because their cost per KWh is based on 100 years of
operation. Many plants were built at a fraction of the present capital cost.
The highest EROI figure for hydro is 267. As shown in post 21 the cost for a
new 1100 MW facility in British Columbia is, depending on operating hours per
year, 8.5-8.8 c/KWh This is similar to the cost from existing wind farms. The
EROI of wind farms is 30 but that includes offshore farms which produce at
22c/KWh while on shore wind power costs 8.5c/KWh That cost keeps falling as
more efficient equipment comes on line. For new facilities wind will be cheaper
than hydro. That is confirmed by the lowest EROI figure for hydro. It is 11.
D
Influence of a global carbon tax
It is obvious that
a global carbon tax, which allows taxing exports without penalties will
influence the above EROI figures substantially, As shown in post 17 at the BC
tax rate of $ 30 per tonne of CO2 the purchase price of coal would
rise by at least 70% while even at the present low rate of $50 per barrel the
cost of crude oil would go up by only 19%. No attempt has been made to figure
it out for the Norwegian offshore tax which is $75 per tonne of CO2
BC has a carbon tax and a clean energy act. The
latter was intended to make lots of surplus green energy available to less
fortunately provinces and states. Due to
the absence of a global tax there is still far too much 4c/KWh power available
on the North American grid so a lot of our green power has to be sold at a loss.
A major portion of the cheap power is supplied by coal fired plants in the USA
and their price would rise following the introduction of a global carbon tax. We
have 31 hydro reservoirs which can even out the flow of irregular green power.
Apart from Quebec we have better wind conditions than any other province. The
act requires us to generate 93% green power and be self sufficient under all conditions.
BC Hydro is obliged to buy all green power which independent companies provide.
At times they can’t accommodate it so it is wasted by overflowing reservoirs.
Also hydro turbines are forced to operate at lower capacity, which drives up
the unit cost. As a result the green power they buy at 8.5 c-9.7c/KWh actually
costs 11-13 c/KWh. Our surplus is enormous. We have an agreement with the US to
regulate the flow of the Columbia River in exchange for half the extra power
they produce as a result. It amounts to an average of 4400 GWh per year, which
is 86% of the 5100 GWh per year which the recently approved Site C power plant
will supply. We can’t use the Columbia River Entitlement for peak power and
since it is subject to renegotiation 10 years after either party demands to do
so, it can’t be included in long term planning. As a result we sell it to the
US for low prices. The requirement of
self sufficiency also creates a huge surplus capacity leading to higher prices.
On cold winter nights hydro turbines must be able to deliver the peak loads,
which are at least 15% above average. During those cold winter nights there is
no solar power available and it may be wind still, hence all power has to come
from hydro. All the above facts are documented in post 21
E
Railway transport
The Quebec disaster
gave it a bad reputation but it was caused by extreme cost cutting, which
resulted in inadequate sampling and classification of the volatile North Dakota
oil. Worse yet, a struggling railroad company was allowed to operate a 72 car, 5
locomotive fully loaded oil train with only one engineer without help of a
conductor. In addition he was allowed to leave it parked unattended on a hill
for several hours until his replacement would arrive. By far the safest way to
transport Alberta oil is as raw bitumen, which behaves like tar and is reheated
at the destination by steam coils installed in the special isolated railroad
cars designed for that transport. Many are already in operation to transport oil
to the Gulf Coast refineries. They are designed to handle our heavy crude and prefer
it over the domestic supplies, which the US rather ships North for export
through Canada, which is exempt from their export prohibition. A main advantage of shipping it raw is that the bitumen does not have to be mixed with expensive condensate
to produce diluted bitumen (dilbit) for transport in pipelines. That condensate
has to be imported and that is why the Northern Gateway actually has two lines.
Another advantage is that the cars can hold 30% more bitumen than by
transporting it as dilbit. Railroads are also useful to deliver oil where there
are no pipelines. In 2014 the US transport by rail was 493,000 carloads, which
is fifty times more than six years earlier.
Post 18 shows with many references how the
railways are taking over from pipelines. If indeed we manage to curtail oil
consumption, pipelines will lose business in 30 to 40 years while railways will
remain to transport the dwindling amount of oil and many other commodities. The
best example is the G7G railway, which was originally planned to carry lumber,
ore and general merchandise from the South to Alaska. It now has been
redesigned to bring oil from Alberta to the underutilized port of Valdez. For
about the same capital cost as the two contested BC pipelines it will be able
to carry more than their combined volume. Valdez is 2 days closer to most Asian
destinations than Vancouver and Kitimat, hence it saves on sea transport while avoiding
the objectionable shipping through BC waters. It has the support and
participation of first nations and when transporting raw bitumen, it will
probably only require a short condensate line. I heard that it will be electric
using cheap new wind power. Since,as described in D), BC Hydro has enough
problems with windpower I don’t foresee a hook up to their net until there is a
global carbon tax.
F
Carbon Capture and srorage(CCS)
Cutting emissions
by developing green energy will take too long to prevent disastrous sea levels.
CCS from all power plants, blast furnaces, beer breweries and other industries
will be very effective and is already well developed, as shown in a few lines
copied from D) in post 22:
“Canada
has 2 of the 21 world’s operating CCS plants (14). China has at least 6 large scale fully integrated
projects (LSIP), driven by state owned power companies with help from major
international partners (15). A recent article describes the GreenGen
project, a billion-dollar facility built with support of Peabody Energy, a
Missouri firm that is the world’s biggest private coal company. The author
notes . “ Part of a coming wave of
such carbon-eating facilities, it may be China’s—and possibly the
planet’s—single most consequential effort to fight climate change”(16)”
The cost is expected to
come down when the VELOXOTHERM™ CARBON CAPTURE TECHNOLOGY of
INVENTYS THERMAL TECHNOLOGIES INC. starts paying off.They
use a large wheel similar to what is used in heat exchangers and a solid
absorbent rather than messy liquids. The large wheel made of adsorbent turns
about one revolution per minute. On one side of the wheel, the spokes collect
carbon dioxide; on the other side, those spokes come into contact with
counter-current steam, which releases the CO2.
As documented under G) in post 24,
capture and storage from the atmosphere will also be essential. At least 2
companies, Esenberger and Carbon Engineering have operating facilities to prove
that it can be done. Carbon Engineering,
an Alberta company uses
standardized scalable industrial facilities. Their full-scale design could absorb
the emissions created by 300,000 typical cars. Obviously thousands of these
facilities will be required around the world. It seems cheaper than building
dikes around all low laying areas. Miami and other low lying cities in Florida
could be lost to the sea in 80 years time because soil conditions make dike
building extremely difficult there.
As shown in detail on several posts a
global carbon tax would allow taxing of exports and all that money could via a
global fund be used to help less fortunate countries and finance CCS. A carbon tax is far less invasive than is often
portrayed. When I talk to fellow British Columbians I note that most don’t know
that we reduced the use of petroleum products by 17% while it rose by 1,5% in
the rest of the country. Half of them don’t believe that we get all the money
back until I show them the tables. Nobody complains that we have suffered due
to the tax.
G
The G7 agreement to limit carbon emission
The G7 leading
industrial nations, including Canada, have agreed to cut greenhouse gases by
phasing out the use of fossil fuels by the end of the century. The
leaders have committed themselves to the need to “decarbonise the global
economy in the course of this century”. They also agreed on a global target for
limiting the rise in average global temperatures to a maximum of 2C over
pre-industrial levels.
Environmental lobbyists described the announcement as a
hopeful sign that plans for complete decarbonisation could be decided on in
Paris climate talks later this year. They criticised the fact that leaders had
baulked at Merkel’s proposal that they should agree to immediate binding
emission targets.
Coal is an essential reduction agent for steelmaking,
Ships, airplanes and the petrochemical industry will for a long time be dependent
on oil, hence carbon capture from stacks as well as from the air will be
essential.
H
Why not process the oil here than rather than ship it out raw
?
Several people have
asked me that question. The refinery business is very competitive and depends
on what routes can be found to ship out the various products. I can only
comment with a few points, which I read about but never recorded. Alberta has 4
refineries and a rather recent plan for an additional upgrader was canceled because
it could not be justified. Most US refineries are designed to handle heavy Canadian
and Venezuelan crude, so that is an established export route. Our Burnaby refinery
may shut down because it does not make money. The two enterprises which are planning
refineries in Kitimat and Prince Rupert have to find niche markets. Asia has super refineries and distribution networks. They
determine their product mix and are only interested in our crude unless we sell
specific products at bargain prices.
A main point for any
refinery decision will be how long it will operate at full capacity. According to
the G7 agreement described above oil will soon become a sunset industry and the
return on investment will suffer from it.