Forest biofuel may actually increase carbon dioxide emissions, West Coast study suggests

Biofuel Environment

A study of west coast forests  in California, Oregon and Washington concludes that biofuel from forests could increase carbon dioxide emissions by at least 14 per cent.

Oregon  State University calls the study “the largest and most comprehensive yet done on the effect of biofuel” from the US west coast.

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A diagram from the Oregon State University shows how using biofuels would increase the carbon emissions by releasing more forest carbon, including the processing and transportation of biofuel.  (Oregon State University)

The study, published Sunday in Nature Climate Change, contradicts previous findings  that suggest biofuel could be either carbon neutral or reduce greenhouse gas emissions.

It is uncertain whether the conclusions of the study could apply to northwestern British Columbia, due to different ecological conditions, including pine beetle devastation and the effects of climate change.

602-6261239015_768f4de19c_m.jpgFor four years, the Oregon State study examined 80 forest types in 19 ecological regions in the three states, ranging from temperate rainforests to semi-arid woodlands. It included both private and public lands and different forest management practices.

Tara Hudiberg, a PhD candidate at Oregon State and lead author, said in an e-mail interview, “We applied thinning scenarios which would remove whole trees and use the merchantable portion for wood products and the rest for bio-energy use (tops, branches, smaller trees of less then five inch DBH  (diameter at breast height ).

“On the [US] West Coast, we found that projected forest biomass removal and use for bio-energy in any form will release more carbon dioxide to the atmosphere than current forest management practices.
 
“Most people assume that wood bio-energy will be carbon-neutral, because the forest re-grows and there’s also the chance of protecting forests from carbon emissions due to wildfire,” Hudiburg said. “However, our research showed that the emissions from these activities proved to be more than the savings.”

The only exception was if forests in high fire-risk zones become weakened due to insect outbreaks or drought, which impairs their growth and carbon sequestration as well as increasing the potential for large forest fires (a situation prevalent through much of British Columbia due to the devastation caused by the pine beetle.)  The study says in that situation, it is possible  that some thinning for bio-energy production might result in lower emissions in such cases.

“Until now there have been a lot of misconceptions about impacts of forest thinning, fire prevention and bio-fuels production as it relates to carbon emissions from forests,” said Beverly Law, a professor in the OSU Department of Forest Ecosystems and Society and co-author of this study.

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(Oregon State University)

“If our ultimate goal is to reduce greenhouse gas emissions, producing bio-energy from forests will be counterproductive,” Law said. “Some of these forest management practices may also have negative impacts on soils, biodiversity and habitat. These issues have not been thought out very fully.”

The study examined thousands of forest plots with detailed data and observations, considering 27 parameters, including the role of forest fire, emissions savings from bio-energy use, wood product substitution, insect infestations, forest thinning, energy and processes needed to produce bio-fuels, and many others.

It looked at four basic scenarios: “business as usual”; forest management primarily for fire prevention purposes; additional levels of harvest to prevent fire but also make such operations more economically feasible; and significant bio-energy production while contributing to fire reduction.

Compared to “business as usual” or current forest management approaches, all of the other approaches increased carbon emissions, the study found. Under the most optimal levels of efficiency, management just for fire prevention increased it two percent; for better economic return, six percent; and for higher bio-energy production, 14 percent.

“We looked at CHP (combined heat and power from combustion) and cellulosic ethanol and we accounted for all sources of Carbon emissions from harvest to use,” Hudiberg said. 

She added,  “We don’t believe that an optimal efficiency of production is actually possible in real-world conditions. With levels of efficiency that are more realistic, we project that the use of these forests for high bio-energy production would increase carbon emissions 17 percent from their current level.”

About 98 percent of the forests in the three western US states  are now estimated to be a carbon sink, meaning that even with existing management approaches the forests sequester more carbon than they release to the atmosphere. Forests capture a large portion of the carbon emitted worldwide, and
some of this carbon is stored in pools such as wood and soil that can
last hundreds to thousands of years, the scientists said.

The study suggests that increases in harvest volume on the US West Coast, for any reason, will instead result in average increases in emissions above current levels.

“Energy policy implemented without full carbon accounting and an understanding of the underlying processes risks increasing rather than decreasing emissions,” they conclude.

When asked about British Columbia, Hudiberg noted: “We are not aware of anything in particular, but we do know that BC forests may (or already are) be more susceptible to climate change impacts and insect outbreaks. So initially, it may be a more suitable region for bio-energy but the same analysis we did here would have to be done [in BC] to know for sure.  She cautions, “The study conclusions are based on the regional conditions and current regional carbon uptake with current management practices For other areas, the current conditions need to be assessed before deciding if bio-energy will increase or decrease carbon emissions.”

Biofuel in northwestern BC

    Biofuels are seen as a growth industry in northwestern British Columbia,  with a number of companies are starting to work on various forms of biofuel investments including large corporations as well as medium  and small business.

  •  In Kitimat, Pytrade has proposed a biomass plant that would use pyrolysis to convert wood waste into liquid bio-fuels and also generate heat that can be used by green houses used to train people in horticulture in conjunction with North West Community College. Pytrade also plans to make money by selling carbon offsets for every tonne of C02 not emitted into the atmosphere they will make money by selling credits. An application by company for a provincial a one million dollar Innovative Clean Energy (ICE) grant has been approved.
  • General Biofuels Canada is planning a 500,000 metric tonne per year wood pellet facility in Terrace.   This project would use hemlock fibre from “non-saw grade fibre” from area forest licence holders.
  • Toronto-based CORE BioFuel Inc. Wants to build a plant, likely in Houston, (and perhaps more plants) to turn forest waste fibre into gasoline.   Each plant would cost $100 million and require 220,000 tons of fibre a year to produce 67 million litres of gas.

 As well as the College of Forestry at  Oregon State University, the study involved institutions in Germany and France. It was supported by the US Dept. Of Energy.

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RTA to divest “non core” aluminum assets

Aluminum

Rio Tinto Alcan has announced that it is “streamling” its aluminum assets after a “strategic review.”

The company says: “The move will allow Rio Tinto Alcan to concentrate on its strategy to
grow the value of its high quality, tier one assets and improve the
product group’s financial performance.”

Six assets in Australia and New Zealand will be spun off into a new company for sale, while a second group of seven assets in France, Germany, the United States and the United Kingdom will continue to be managed by RTA while the company considers divestment options.

An RTA news release Sunday says

Rio Tinto’s interests in six Australian and New Zealand assets will transfer into a new business unit, to be called Pacific Aluminium, and be managed and reported separately from the Rio Tinto Alcan product group prior to divestment.
These are:

  • Australia: Gove bauxite mine and alumina refinery, Boyne Smelters and the associated Gladstone Power Station, the Tomago smelter and the Bell Bay smelter

  • New Zealand: New Zealand Aluminium Smelters

 A second group of seven non-core assets will continue to be managed by Rio Tinto Alcan while it further investigates divestment options.

These assets include:

  • France and Germany: Three Specialty Alumina plants and the Gardanne refinery

  • United States: Sebree smelter
  • United Kingdom: Lynemouth smelter and associated power station, for which potential options include closure

The news release quotes Rio Tinto chief executive Tom Albanese as saying: “The assets identified for divestment are sound businesses that are well-managed with productive workforces. But they are no longer aligned with our strategy and we believe they have a bright future under new ownership. The strength of our balance sheet means that we can choose the most opportune method and timing to divest these assets, which may not occur until the economic climate improves. In the meantime, we will continue to run these operations safely and efficiently.

“This move is a further significant step towards achieving our performance targets in the Aluminium product group. We have already made good progress, with plans in place to generate sustainable performance improvement, and we are investing at a number of our core assets.”

 Rio Tinto Alcan chief executive Jacynthe Cote said “We are already well on our way to building a truly outstanding aluminum business. Streamlining the product group allows Rio Tinto Alcan to concentrate its efforts even more on driving performance improvements and investing in growth to increase shareholder value.”

Rio Tinto says it has consultations with affected stakeholders  and the workforces involved.

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Kinder Morgan buys US natural gas pipeline company in $21 billion dollar deal

Kinder Morgan, the giant oil pipeline company, which has proposed building a second bitumen pipeline from Alberta to Kitimat, Sunday announced it was buying El Paso Corp, America’s largest natural gas pipeline operator.

The Associated Press says the deal is worth $20.7 billion, Bloomberg says it is worth $21.1 billion.

Kinder Morgan already operates a pipeline from Alberta through British Columbia to the port of Vancouver and there are plans to expand that pipeline.

Kinder Morgan’s move comes after Enbridge also said it was interested in moving into the natural gas pipeline business. Both companies are moving to take advantage of the natural gas found in shale deposits and the growing demand for natural gas in both North America and Asia.

Bloomberg
says:

The takeover is the largest ever proposed of a pipeline company, surpassing the 2007 leveraged buyout of Kinder Morgan itself by a group including Richard Kinder and Goldman Sachs Group Inc. The combined company would have 67,000 miles (107,000 kilometers) of gas lines and eclipse Enterprise Products Partners LP as the biggest U.S. pipeline operator.

“This once in a lifetime transaction is a win-win opportunity for both companies,” Kinder, who will be chairman and chief executive officer of the combined company, said in the statement. He said the deal, once closed, would create immediate shareholder value because of its cash flow.

The Associated Press says

Kinder Morgan will more than double the size of its pipeline network by purchasing El Paso. The new pipeline system would stretch 80,000 miles — long enough to wind around the globe three times. Kinder Morgan’s pipelines in the Rocky Mountains, the Midwest and Texas will be woven together with El Paso’s expansive network that spreads east from the Gulf Coast to New England, and to the west through New Mexico, Arizona, Nevada and California.

“We believe that natural gas is going to play an increasingly integral role in North America,” said Richard Kinder, Kinder Morgan Inc.’s chief executive, said on Sunday when the deal was announced.

Robert McFadden, a Houston-based natural gas pipeline consultant, said the expanded network will make it easier to move natural gas from new fields that have mushroomed across the U.S. in the past few years.

The take over deal came on the same weekend that the “Occupy” movement was demonstrating around the world against the greed of financial institutions.

Reuters reports that:

The investment banks advising on Kinder Morgan Inc’s $21 billion purchase of El Paso Corp are set to rake in a total of $100 million to $145 million in M&A fees, according to Freeman & Co on Sunday.

Evercore Partners and Barclays Capital , which are advising Kinder Morgan on the deal, would earn $45 million to $65 million in fees, Freeman estimates show.

Morgan Stanley and Goldman Sachs , which are on El Paso’s side, would split another $55 million to $80 million in fees, depending on the role they played, the estimates show.

B.C. hunting, fishing guides frustrated by lack of government support

Fishery Business

B.C. hunting, fishing guides frustrated by lack of government support: CBC News
 
By Robin Rowland, CBC News

SPECIAL REPORT: Small business news and features

Along the fjord known as the Douglas Channel in northwestern B.C., the winds are at gale force as Rick Thompson, the owner-operator of a floating fish lodge called the Tookus Inn, sets off from Kitimat harbour to close up for the season. Like many in his industry, he has poured much time and energy into building his outfitting business and he’s frustrated by staffing problems and the fact that guides seem to have fallen off the map when it comes to government support.

Natural Resources minister Joe Oliver continues to push Northern Gateway

Energy Links

 Conservative Natural Resources Minister Joe Oliver is continuing to promote the Enbridge Northern Gateway pipeline.  In a speech to the Canadian Club in Toronto, Oliver promoted both the Keystone XL pipeline from the Alberta oil sands to Texas and the Northern Gateway pipeline through Kitimat.

The Globe and Mail reports in New pipelines crucial to expand energy exports: Minister

Canada needs projects like Enbridge Inc. Northern Gateway pipeline to provide crucial access to growing markets for the country’s energy exports, says Natural Resources Minister Joe Oliver.

In remarks prepared for a speech Friday in Toronto, the Minister said the federal government would respect the regulatory review now being conducted on the Gateway project. But he made it clear Ottawa supports the construction of oil pipelines to the west coast, despite opposition from environmental groups and First Nations…..

Projects such as the proposed Northern Gateway Pipeline would connect Alberta’s oil sand to the port at Kitimat on the coast of British Columbia, where tankers could transport oil to Asian customers.”

While he said the government respects the regulatory process, he added: “It is a key strategic objective to diversify our customer base” beyond the U.S., which now accounts for 97 per cent of Canada’s oil exports.

The Associated Press also covered Oliver’s speech, as published in the Washington Post:

Canada’s natural resource minister says the country needs Enbridge’s proposed Northern Gateway pipeline to the Pacific coast to be built so that it can diversify its energy exports to China.

Natural Resource Minister Joe Oliver noted in a speech Friday that the U.S. is basically Canada’s only energy customer. Oliver says it is a key strategic objective to diversify the customer base.

But Aboriginal and environmental opposition to the Pacific pipeline is fierce. The opponents fear it will leak. The local member of Parliament, Nathan Cullen, has said accidents are inevitable in the rough waters around Kitimat, British Columbia, where the pipeline will end. And no one has forgotten the Exxon Valdez oil spill of 1989, some 800 miles (1,300 kilometers) north of Kitimat….

Sinopec, a Chinese state-controlled oil company, has a stake in a $5.5 billion plan drawn up by the Alberta-based Enbridge to build the Northern Gateway Pipeline from Alberta to the Pacific coast province of British Columbia.

Natural Resources Canada news release: Minister Oliver Touts Canada’s Energy Resources and Economic Strengths

Kitimat takes halibut fight to BC municipal convention

Environment Fishery

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District of Kitimat councillor Randy Halyk, seen here at the local Jack Layton memorial on August 27, 2011, will be defending Kitimat’s resolution on halibut quotas at the Union of BC Municipalities convention.   (Robin Rowland/Northwest Coast Energy News)

Kitimat is taking the fight over halibut allocation to the Union of British Columbia Municipalities convention to be held in Vancouver September 26 to September 30.

The resolution is one of two that the union will consider on the halibut controversry, the other comes from the Capital District on Vancouver Island,

Members of the District of Kitimat council will be at the convention to sponsor and defend the resolution.

The Kitimat resolution calls on the union to endorse:

Whereas the current federal allocation of the sustainable Pacific halibut resource is insufficient to provide reasonable catch and possession limits for the recreational and commercial sport fishery;

And whereas an increase in daily catch and possession limits would be of great benefit in attracting sports fishing tourists to coastal communities.

Therefore be it resolved that the UBCM support an increase in the allocation of the sustainable Pacific halibut resource to the sport fishing and requests that the federal Ministry of Fisheries and Oceans increase the catch limits to two per day and four in possession.

 

 The Kitimat resolution was endorsed by the North Central Local Government Association

 The overall province wide resolutions committee gave no recommendation on the Kitimat resolution saying it wasn’t clear what impact the resolution would have on the sports fishing industry. The committee added a note to the agenda that in 2010 members of the UBCM did endorse a resolution that requested the provincial and federal governments support both the commercial fishing industry and the sports fishing industry equitably as they are both critical economic generators for residents within the province.

The resolutions committee notes that British Columbia did express “support for the sustainability of both commercial and recreational fisheries in tidal waters.” The province apparently “highlighted a number of its activities related to ensuring fisheries sustainability and maximizing the economic and social benefits.”

The somewhat stronger resolution from the Capital Region did not receive an endorsement from the Association of Vancouver and Coast Communities and a “no recommendation” from the province wide resolution committee. That resolution says, in part that the allocation between the recreational and commercial sectors in the Canadian halibut fishery during years of low abundance will destroy the economic viability of coastal communities and deny Canadian citizens access to the common property resource of halibut.

It calls for a “more fair and equitable approach that would allow the recreational and commercial fishing industries to survive during years of low annual quotas,” it calls for the federal government to purchase or lease halibut quota from the commercial sector (rather than having the recreational sector purchase individually as the current Department of Fisheries and Oceans “pilot project” calls for) so that the recreational sector has a “permanent base limit,” that the season be guaranteed from February 1 to December 1 each year and that the limit be one halibut per day, two in possession. (The Department of Fisheries and Oceans stopped the recreational halibut season as of midnight Sept. 15 while allowing the commercial season to continue).

 

Japan seeking LNG from US: Reports

Energy Links

Japan wants to buy more liquified natural gas from the United States, according to reports in the business and energy media.

Bloomberg reported Japan to Boost LNG Imports From U.S. as Nuclear Power Declines

Japan, the world’s largest importer of liquefied natural gas, plans to seek more U.S. cargoes to ensure adequate power supplies after its use of nuclear reactors fell to an all-time low.

Japan’s senior vice minister of trade and industry, Seishu Makino, asked U.S. Energy Secretary Steven Chu at a meeting yesterday in San Francisco to increase LNG exports, Akinobu Yoshikawa, deputy manager for the Petroleum and Natural Gas Division, told reporters today in Tokyo.

Reuters reported Japan to start buying LNG from U.S. by 2015-Nikkei

Japan plans to start importing liquefied natural gas (LNG) from the United States as early as 2015 to secure a steady supply amid growing demand for the fuel, Nikkei business daily reported…

Japanese power and gas utilities would initially import 2-3 million tons of LNG a year, the daily said. Gas extracted from shale rock formations will be liquefied in Texas and Louisiana. The LNG will then be shipped to Japan via the Panama Canal, Nikkei said.

Liquified natural gas from fields in Alberta and British Columbia sold to Japan is a major reason for LNG developments at the port of Kitimat. Testimony at last June’s NEB hearings on the KM LNG export licence application warned of increasing competition from the US for Canadian LNG.

Encana optimistic about natural gas exports, others cautious: CP

Energy Link

Ecana, one of the partners in the KM LNG (Kitimat LNG) is optimistic about prospects for liquified natural gas exports from the west coast of British Columbia, Canadian Press reports from a conference in Calgary.

Encana sees renaissance in natural gas, while others more bearish on prospects

Laurgen Krugel reports

Encana Corp. foresees a “renaissance” in natural gas prices once
terminals begin to pop up along the West Coast to export the fuel to
energy-hungry Asian markets, but others addressing an energy conference
on Tuesday weren’t quite so enthusiastic.

“We think that the prices are going to stay robust in Asia.
You look today in Japan, it’s still US$13 (per 1,000 cubic feet) over
there,” Mike Graham, who heads up Encana’s Canadian division, told the
Peters & Co. event….

John Langille, vice-chairman of Canadian Natural Resources Ltd. said he’s not quite so gung-ho….

:Canadian Natural has a large land position in northeastern B.C.’s shales, but has been focusing most of its attention on developing oil- properties in Western Canada and abroad. It has signalled no interest so far in jumping aboard the LNG bandwagon, though Langille said eventually the gas will have to find its way out of North America.

“And that will happen, but it’s a five-year scenario before that happens,” he said.

Japanese utilities using record amounts of LNG: Reuters

Energy

Japan utilities’ LNG usage hits record high in August

Japan’s 10 utilities consumed a
record 4.81 million tonnes of liquefied natural gas in August,
up 15.4 percent from a year earlier, industry data showed on
Tuesday, as they burned more gas to offset a fall in nuclear
power generation.

Edmonton region council backs Northern Gateway, but wants Alberta jobs

Energy Link

Capital Region Board to lobby for Northern Gateway pipeline

Edmonton radio station 880 News reports:

Mayors and reeves from the greater Metro Edmonton area are throwing some political weight behind the idea of a pipeline to the west coast.
 
But, there’s a catch to the proposal of the Northern Gateway.

“Don’t ship all of our bitumen out,” said Coun. Ed Gibbons during a break in Thursday’s meeting Capital Region Board meeting. “Let’s have value added, so we want to look at more upgraders into the future.