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Energy industry column

Dutch IGCC pioneers chalk up pain and gain
Site manager talks of 5000 plant modifcations [June 07]

Emergency response is behind schedule in the European public sector
Commission threatens legal action against lax COMAH planning [May 07]

A new refining industry in Europe's Asian Corridor
South East Privatisations full steam ahead [Apr 07]

Commission proposes milestone energy proposal
A sea change in climate policy [Mar 07]

Replace fuel oil with distillate?
But how, ask refiners [Feb 07]

Cancelled projects will sustain margins
66 new refineries. 180 upgrading projects and another 180 for clean fuels [Jan 07]

“Marine distillate not fuel oil from 2010”
Tanker association shocks bunker fuels world [Dec 06]

Branson's biofuels megastore
Virgin Fuels has already invested heavily in new fuels [Nov 06]

You heard it here first: refinery CO2 storage a reality in Norway
Mongstad told to sequestrate [Oct 06]

Buncefield 2: Investigation critical
A breathtaking overfilling equivalent to 50 open firehoses of gasoline – for hours! [Sep 06]

Where now for Swedish Class 1 diesel
Oil companies at each other's throats over the need for Europe's cleanest diesel [Aug 06]

My slow awakening to climate change
This is the article that marked my epiphone and outraged climate sceptics [Jul 06]

The luckiest motorist alive
The Buncefield investigation tells of the driver who stalled – and then restarted – his car inside the gas plume [Jun 06]

Safety row goes on over Europe's largest LNG terminal
liquid gas safety caused a firey debate here at the magazine too [May 06]

New WHO guidelines on city air quality put focus on diesel
particulates are still a major killer in failing European cities [Apr 06]

Would LNG really 'evaporate harmlessly' in an accident?
Some experts think maybe not [Mar 06]

Another lesson in the thermobaric bomb
But the physics of Buncefield comes as a surprise [Feb 06]

Fat margins, large pay rises, small clichés
Last new year I asked if the good times would continue. They did [Jan 06]

Spare a thought for the oil-rich
Join me at this festive time in sparing a thought for the fantastically wealthy [Dec 06]

But will the good times keep on rolling?
- some rellish the highs of a hot fuels and process technology market, others are bracing themselves for the decent[Nov 05]

Carbon storage and the zero emissions refinery
- the arguments are stacking up for fundamental changes in refi nery design [Oct 05]

Everything just changed
-Bush at G8 statement has massive implications [Sept 05]

E85 and high octane gasolines
- some are whacky some profitable [August 05]

The problem of small-minded young engineers
- at Europe's largest chem eng meeting [July 05]

New Permit Regulations
- a trickle of small cap projects became a flood [June 05]

Biodiesel newbuilds and a new green superfuel
- The new Neste Oil looks to clean up [May 05]

Spilled wine and our split industry
- Exxon Mobil CEO targeted on Kyoto entry-into-force day [April 05]

Drilling down into the prospects for IGCC
- Refinery power a nuclear alternative? [March 05]

The beginning of the start of the end of oil
- A painful 100-year adjustment [Feb 05]

European ministers meet to discuss milestone energy proposal

This month we’re publishing the Gasification 07 supplement with HP. It’s very timely since it coincides with discussion at European Council level on the 8th of March of Europe’s Strategic Energy Review.

The review is ambitious in scope, dramatic in its language and makes it very clear that a programme of multiple large-scale demonstrations of gasification technology is an urgent and important project for the European Union.

The tone of the documents wrapped up in the strategic review should perhaps not surprise us. They’ve been written during a tumultuous time in European energy, security and environmental policy. Without going back over well-reported ground, the last 12 months in Europe have been marked by cross-border power blackouts in Germany and France, intimidating closures of key oil and gas import pipelines by Russian companies, and a heightening of environmental concerns to a level that makes the Brent Spar fiasco look like a Sunday School day out.

The review and its manner of presentation – as “a first real energy policy for Europe” – have the makings of a milestone. Rhetoric is cheap, of course, but even so, listen to how Europe’s most senior public official, Commission President José Manuel Baroso, and his two key Commissioners characterise the proposals.

President Barroso: “Today marks a step change. Energy policy was a core area at the start of the European project. We must now return it to centre stage. The challenges of climate change, increasing import dependence and higher energy prices are faced by all EU members. A common European response is necessary to deliver sustainable, secure and competitive energy.”

Commissioner for Energy Policy, Andris Piebalgs: “If we take the right decisions now, Europe can lead the world to a new industrial revolution: the development of a low carbon economy. Our ambition to create a working internal market, to promote a clean and efficient energy mix and to make the right choices in research and development will determine whether we lead this new scenario or we follow others."

Commissioner for Environment, Stavros Dimas: “Climate change is one of the gravest threats to our planet. Acting against climate change is imperative. Today, we have agreed on a set of ambitious, but realistic targets which will support our global efforts to contain climate change and its most dire consequences. I urge the rest of the developed world to follow our lead, match our reductions and accelerate progress towards an international agreement on the global emission reductions".

The Commission communiqué pulls no punches. It’s been interpreted as not only an energy policy, but as an attempt to repurpose the European project towards the popular concerns of European voters: the environment, and access to energy that European companies, consumers, and members states can afford, both economically and politically.

Europe’s council of government ministers, which along with the elected European Parliament, will turn the proposals into directives, has been presented with the following Commission analysis.

• There is a more than 50% chance that global temperatures will rise during this century by more than 5°C. On current projections, energy and transport policies would mean that rather than falling, EU emissions would increase by around 5% by 2030.

• With current trends and policies the EU's energy import dependence will jump from 50% of total EU energy consumption today to 65% in 2030.

• The internal energy market remains incomplete, which prevents EU citizens and the EU economy from receiving the full benefits of energy liberalization.

The latter point is key. The Commission believes consumers and industry pay too much for energy. A fully liberalized internal energy market is remedy number one in President Barroso’s eyes.

Items two and three involve accelerating the shift towards low carbon energy and improving energy efficiency.

By 2020, 20% of European Energy should come from renewables, and there is a minimum target of 10% biofuels in EU transport fuels. Research spending is to increase by at least 50% for the next seven years.

As part of a European Strategic Energy Technology plan, the Commission wants to see 12 large-scale demonstrations of Sustainable Fossil Fuels technologies in commercial power generation. It wants them designed, built and operating by 2015.

Although, the Commission will almost certainly pursue more or less conventional coal generation with post combustion carbon capture as well, it is this programme of the review that will kick-start a new Integrated Gasification Combined Cycle coal, waste and biomass industry, with low CO2 emission coal clearly the key element.

The objective is a distributed near zero emission coal power industry in place from 2020. IGCC without CO2 capture, what is today called ‘clean coal’, will be succeeded as an industry before the technology is even off the drawing board in most cases. The Commission says it will, if necessary, adopt binding legal instruments and open up the Environmental Impact Assessment Directive or the Integrated Pollution Prevention and Control Directive to prevent any power plants being built without carbon capture and storage in place.

Oh, and another thing, the Commission also proposes what to call this new integrated, low carbon emission hydrocarbon industry, now that “clean coal” no longer cuts it.

Sustainable Coal.

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Profile: Tim Lloyd Wright MA

Here you'll find a brief profile of my work with international energy, transport and associated environmental issues.

Energy trends articles

You heard it here first: refinery CO2 storage a reality in Norway
Mongstad told to sequestrate [Oct 06]

From the archive...

Over-processed fuel leaves oil tankers adrift
Oil tankers powerless at sea with fuel problems are part of the legacy of Auto Oil II [Nov 03]