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Clean coal project ‘will fail’ under emissions trading scheme.

with one comment

http://www.abc.net.au/news/stories/2009/01/19/2468820.htm

Opposition environment spokesman Greg Hunt says a major clean coal project in central Queensland will fail unless the Federal Government changes its emissions trading scheme.

ZeroGen is working to develop a low emissions plant but says under the proposed carbon pollution reduction scheme it may be forced to buy permits.

If this “clean coal” is so clean, and actually does not have any significant emission of carbon dioxide to the atmosphere, why are GHG emissions permits any significant issue at all? Any and all technologies which are truly “clean” obviously have a competitive advantage under the emissions trading scheme – so how exactly is the coal industry able to complain about a financial disadvantage faced by “clean coal”?

Of course they should be forced to buy permits – as should every power station – corresponding to their quantitative greenhouse gas emissions. If you don’t want to sink money into GHG permits, then you deploy low-emissions or zero-emissions technologies.

Even after what is basically an admission that “clean coal” is still associated with very high emissions of carbon dioxide to the atmosphere, more than natural gas and more than essentially any other energy generation technology with the exception of conventional coal-firing, the coal industry is still expecting even more handouts for the government for purported “clean coal” – and the government will probably give in, since “clean coal” is the only example the Australian Government has that they can try and meaningfully show as evidence of their supposed commitment to the management of anthropogenic greenhouse gas emissions. If Big Coal threatens to walk away on the “clean coal” projects if they don’t get the additional taxpayer-funded pork they demand, the government is left with nothing to show off.

In a letter to Resources and Energy Minister Martin Ferguson the company said it should be exempted from buying carbon permits as it is a research and development project.

It has warned that if it has to buy permits the project may become unviable.

The Queensland Government has provided $100 million for the project and Prime Minister Kevin Rudd has voiced his support for it.
Mr Hunt has accused the Commonwealth of “turning its back” on clean energy.

“The project will fail under Mr Rudd’s regime,” he said.

“Very clearly ZeroGen, clean coal, the future of Australian clean energy will fail under Mr Rudd’s regime.”

What a bunch of ridiculous rhetoric.
Given that we’re seeing so much government money being handed out to the coal-fired generation industry in relation to coal and emissions trading, and so many exemptions from emissions trading and the issuing of free permits, it might almost come as a surprise that there is interest in “clean coal”, when there is no real significant economic disincentive to the use of conventional coal-fired technology. The answer does indeed seem to be that these mendaciously small-scale “clean coal” projects seem to be an attractive source of easy government handouts for Big Coal.

Mr Hunt says the Government’s stance on emissions trading has already hurt the company.

“We’ve learnt that there are already job losses at ZeroGen,” he said.

The entire business development and corporate affairs section has been sacked in the last few days, the company is already winding down.”

A spokesperson for Mr Ferguson says the minister will address the issues raised in ZeroGen’s letter in “due course”.

Last year the Government allocated $100 million to the formation of the Carbon Capture and Storage Institute.

About 80 per cent of Australia’s electricity is created by coal-fired power generators.

Under the proposed carbon pollution reduction scheme, all revenue from the sale of permits will be used to compensate households for rising costs.

The Government’s climate change adviser, Professor Ross Garnaut, had urged the Government to allocate about a third of collected revenue to clean energy research and development.

One Response

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  1. Now it seems neither clean coal nor natural gas are grateful for the competitive advantage bestowed by carbon reduction schemes. I believe the old saying was never look a gift horse in the mouth. In the case of ZeroGen it was always a show pony not a working animal.

    I’m more troubled by the fact that new US Energy Secretary Chu sees merit in CCS. More years will be wasted on this dead end. On a more positive front it looks like Australia’s coal exports are in decline, at least for coking coal. However domestic baseload will ensure steady demand and steady domestic emissions. When our politicians assure us that CCS is imminent they will look increasingly naive.

    John Newlands

    January 20, 2009 at 3:42 am


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