Use of LNG as transportation fuel accelerates in B.C.

By Nelson Bennett, Business in Vancouver.

It may be a few years yet before any company starts exporting liquefied natural gas from B.C. to Asia. 

Meanwhile, B.C. producers are finding a small but growing domestic market for natural gas, in the form of liquefied natural gas (LNG) and compressed natural gas (CNG), in the trucking and marine transportation sectors.

Last month, BC Ferries received its second purpose-built LNG ferry from Poland. That brings to four the number of LNG-powered ferries that will soon be operating in B.C. waters. Two belong to BC Ferries, two to Seaspan Ferries Corp.

One more purpose-built intermediate-class LNG ferry is still being built, and BC Ferries also plans to retrofit two Spirit-class vessels to run on LNG.

Meanwhile, more trucking fleets and public transit authorities, including TransLink, have also been making the switch from diesel to natural gas when they replace buses.

That’s a big benefit for Westport Fuel Systems (TSX:WPRT), which has supplied the natural gas engines for those buses.

BC Transit now has 74 buses in B.C. running on compressed natural gas, and another 46 are expected to be on the road by 2018. TransLink has 45 CNG buses on the road, and another 51 are expected to arrive by the end of this year.

Thanks to a surplus of new LNG plants, there is a glut of LNG on the market, which has historically been used mostly for thermal power generation.

But thanks to their low costs and low carbon emissions, natural gas and LNG are starting to replace gasoline and diesel as transportation fuels.

As of 2012, natural gas accounted for just 3% of the world’s transportation fuel, according to the U.S. Energy Information Administration (EIA), which estimates that share will grow to 11% by 2040.

The B.C. government is encouraging natural gas utilities like FortisBC and Pacific Northern Gas, which serves northern B.C., to try to develop these new domestic markets for LNG and CNG in transportation.

It recently amended its greenhouse gas reduction regulations to allow utilities to offer more incentives to the marine sector to convert vessels to LNG and invest in LNG fuel storage and in new sources of renewable natural gas.

Read more...

Bullish on Renewable Energy: Investors Argue Trump Can’t Stop the Revolution

By Leslie Kaufman, Inside Climate News.

For proponents of clean energy, the Donald Trump administration already seems like a nightmare. In the worst moment so far, Trump surrounded himself with coal miners and signed an executive order last week that aims to rescind former President Barack Obama's Clean Power Plan. That regulation would have continued to move the power industry away from coal-burning plants and toward wind and solar farms.

So is Washington trying to kill the renewable energy revolution? Jeff Tannenbaum and Jigar Shah don't believe that's possible. They were both involved with a company called sPower, which has built and operates 150 utility-scale solar and wind power projects across the U.S. and the U.K. It was sold in February to giant utility AES Corporation for $1.6 billion—one of the biggest deals ever in the green energy industry.

Tannenbaum and Shah say that deal is just one of many that prove the shift away from fossil fuels is inevitable, whatever the political climate and no matter who is in the White House.  

Tannenbaum is the founder of Fir Tree Partners, a private investment firm with $10 billion under management. His clients are endowments, pension funds and foundations, and he did not make his bet on sPower because he is an environmental activist. He said his primary goal is to make good long-term investments. Fir Tree acquired sPower three years ago for the most traditional of reasons—because Tannenbaum saw a potentially booming market for clean power companies.

In contrast, Shah, owner of a firm called Generate Capital, has been a renewables advocate for decades. His company provides financing for commercial-scale renewable energy generation projects, heating equipment retrofits, energy storage, urban farms and wastewater treatment technologies. He was a founder of solar energy pioneer SunEdison, is the author of the book "Creating Climate Wealth," and had been on the board of directors of sPower since 2014.

Read more...

House Republican tax chief to huddle with Democrats

By Reuters, via The Fiscal Times.

House Ways and Means Committee Chair Kevin Brady said the meeting with his panel's 16 Democratic members will focus on ways to simplify the U.S. tax code for individuals and stop U.S. companies from moving production and research facilities overseas - both key House Republican tax reform objectives. 

"At the end of the day, I don't want to make a prediction as to where that goes. But I think this engagement's important," Brady told reporters on Monday. "I'd love to have them bring their ideas on how we leapfrog America back into the lead as the most competitive place on earth for that new business." 

The meeting is expected to take place on Wednesday, according to House aides. 

A spokesman for Ways and Means Democrats had no immediate comment. 

Brady said the meeting has nothing to do with the healthcare debacle on March 24, when the Republican-controlled House pulled legislation to repeal and replace the healthcare law known as Obamacare when it became clear that Republicans would fall short of the votes needed. Trump blamed the failure on hardline Republican conservatives who opposed the bill and threatened to reach out to Democrats.

Read more...

Ontario's first cap-and-trade auction a sellout

By Kristin Rushowy, The Toronto Star.

Ontario’s first auction for greenhouse gas allowances was a sellout — with 100 per cent of current permits available snapped up by the province’s biggest polluters.

But Environment Minister Glen Murray said while the participation showed “a high level of confidence” among businesses, the real measure of success comes in curbing emissions.

“The participation rate — whether 100 per cent or 20 per cent . . . is not the success of the market,” he told reporters at Queen’s Park. “The success of the market is really based on our ability to reduce GHGs. We will not expect to get 100 per cent all the time.”

Results of the auction, held March 22, were released Monday afternoon. Some 25,296,367 allowances for 2017 were sold as well as 812,000 in future allowances — about a quarter of what was available for 2020 — bringing in a total of $472,031,155.

The next auction is scheduled for June 6.

Murray said he was pleased to see the trading price at $18.08, only slightly more than the minimum floor price. 

“One of the objectives of cap and trade is to manage the transition to a low carbon economy at the lowest-possible prices to Ontarians and Ontario businesses, so we didn't want to see early upward movement on that,” Murray said.

Gas purifying solution to drive down operational costs at landfill gas power plants

By Bioenergy Insight.

US based landfill gas industry O & M contractor and engineering company ENERGYneering Solutions Inc. (ESI) have signed a supply and service contract for Topsoe’s proprietary HiPerFuel landfill gas conditioning solutions. The HiPerFuel unit will deliver high-purity fuel gas for an ESI landfill gas power plant in Washington State.

The contract is the first deal signed for Topsoe’s HiPerFuel landfill gas conditioning solution. The new solution is designed to demonstrate the effects of high-purity landfill gas for power plants by driving down operational costs and downtime for landfill gas power plant operators.

“We are excited about the possibilities with this new solution from Topsoe. The solution Topsoe is offering is unique to the industry in that it offers high siloxane removal efficiency and long media life comparable with many of the regenerative systems on the market while avoiding the typically high capital and operating costs associated with dehydration of the gas and thermal oxidation of waste gases. We are very much looking forward to seeing the effects of running our engines on a siloxane-free gas,” said William Song, Director of Engineering at ESI.

Read more...

USDA Secretary-Nominee Confirms Support for RFS

By The National Law Review.

During last week’s Senate Committee on Agriculture, Nutrition, and Forestry’s confirmation hearing for former Governor Sonny Perdue to become Secretary of the U.S. Department of Agriculture (USDA), lawmakers questioned Perdue on his support for various programs affecting the agricultural sector, rural communities, and conservation efforts. Of particular note, when questioned by several members, Perdue indicated he will support and advocate for the Renewable Fuels Standard program administered by the Environmental Protection Agency.

Ohio House Passes Bill to Roll Back Renewable Energy Standards, Again

By Phil McKenna, Inside Climate News.

Legislation that would undo a renewable energy mandate in Ohio passed a key vote in the state House of Representatives on Thursday. The bill, turning Ohio's existing renewable energy requirements into voluntary standards, passed by a vote of 65-29.

That would be a large enough margin for the House to override a veto by Gov. John Kasich, but only if the Senate goes along.

The current  law, passed in 2008, requires utilities to get 12.5 percent of the electricity they sell  from renewable energy sources by 2027. After an early fight, this deadline was put on hold from 2014 to the end of 2016. The current bill would continue to block the advance of the renewables mandate. The state met its current mandate of getting 2.5 percent of electricity from renewables in 2014, the most recent year for which data is available.

The new legislation, championed by the Republican-led House and supported by fossil fuel interests, would make the clean-energy quota voluntary and would weaken separate requirements for utilities' energy efficiency programs. Ratepayers would be able to opt out of paying for clean-energy programs.

The bill, a potentially significant setback for renewable energy in a key swing state with extensive fossil fuel development, is one of hundreds of state energy bills, both for and against renewables, that are being fought out nationwide this year even as the Trump administration seeks to bring back coal and promote fossil fuels.

Read more...

Providing Clarity of Industry Terminology

By Marcus Gillette, Coalition for Renewable Natural Gas. Published in Biomass Magazine | March 29, 2017

 “A definition is the enclosing a wilderness of idea within a wall of words.”  Samuel Butler, 19th Century English author and poet. 

Accomplished writers seem to cast a negative, narrow view on labeling terms with precise definitions. I respectfully disagree with that perspective, especially considering Oxford Dictionaries’ recently named “post-truth,” the 2016 word of the year. Definition of industry terminology matters in our sustainable biomass and bioenergy industries. Allow me to explain.

I work for the Coalition for Renewable Natural Gas, representing the interests of the renewable natural gas (RNG) industry in North America. Having said that, whether you realize it or not, your understanding of what you just read (who I work for) may very well differ from another reader of this article on the other side of the country or across an ocean, or even from your fellow industry colleague in the office next door to you. 

I have listened to speakers and watched presenters haphazardly substitute one industry term for another, as they move from one presentation slide to the next, leaving behind a bewildered audience. I have been in the middle of conversations with a new industry contact for up to half an hour before we realized that we were essentially speaking separate languages by using different industry terms to convey similar ideas. I know I’m not alone in this; colleagues have recounted similar stories. 

Definitions matter. They provide clarity. Accurate communication and understanding result in effective conversations and facilitate efficient business dealings, especially in what is considered a post-truth era.    

This is evidently even more relevant to those of us working in growing, niche industries, as we frequently battle to overcome misunderstanding. For example, meetings with regulatory agencies and with offices on Capitol Hill have not infrequently required rabbit trails to correct misunderstandings. “Don’t bioenergy, biogas and renewable natural gas refer to the same thing?”

To prevent future confusion, to save you future time and perhaps even future profits, the RNG Coalition and the American Biogas Council have collaborated in recent months in order to bring clarity to those working in North America whose roles cross over into the biogas and RNG industries (and any biomass, waste to energy, or connected policy and regulatory position). We have drafted, vetted and come together to put forth the following agreed upon definitions.

• Biogas is “a mixture of carbon dioxide (CO2) and hydrocarbons, primarily methane (CH4) gas, from the biological decomposition of organic materials.” 

• Syngas is “a gas mixture composed primarily of hydrogen (H2) and carbon monoxide (CO), along with hydrocarbons from the thermochemical decomposition of organic or inorganic materials.”

• Conditioned biogas is “medium-Btu biogas that is stripped of some trace contaminants and water, but maintains the relative mix of CO2 and CH4.”  

• Biomethane is “biogas-derived, high-Btu gas that is predominately methane after the biogas is upgraded to remove most of the contaminants and a majority of the CO2 and nitrogen (N2) found in biogas.” 

• RNG is “biomethane that is upgraded to natural gas pipeline quality standards such that it may blend with, or substitute for, geologic natural gas.” *

• Renewable compressed natural gas (R-CNG) is “RNG that is compressed to a high pressure, often for use as a transportation fuel.” 

• Renewable liquefied natural gas (R-LNG) is “RNG that is converted to liquid form, often for use as a transportation fuel.” 

The distinctions in these definitions are important for regulatory bodies and policymakers to understand, especially as biogas, including landfill gas, is increasingly upgraded to biomethane for injection into natural gas pipelines as RNG, and eventually used as a transportation fuel in the form of R-CNG or R-LNG. While some natural gas pipelines have received RNG for decades, a number of pipelines are exploring, for the first time, how to make these interconnections feasible. The language used in pipeline interconnection agreements and pipeline gas specifications is critical. Studies on, or testing of, a raw biogas will show much different results as to constituent makeup and characteristics of biomethane, which has been cleaned and conditioned by natural gas treatment technologies. 

Imprecise or incorrect use of one term in place of another can thus prevent sustainable gas from a landfill or anaerobic digestion facility from meeting a prescribed specification and reaching its highest and best use.

Providing precise definitions of terms can have positive impact beyond ensuring a clearly understood conversation or a well-educated audience. Using the same terminologies to enable the same comprehension of industry definitions in legal contracts, regulatory documents, and in drafting policy language could prevent legal issues and be critical in preserving the company’s bottom line.

Socrates is credited with saying that, “The beginning of wisdom is the definition of terms.” As an industry, we should further adopt this wisdom by standardizing and embracing these definitions.  

Change isn't a spectator sport: Renewable energy can happen without Washington

By Matt Tomich, Contributor to The Hill.

You don't have to invoke any new political divisions to explain President Trump's roll-back of Obama's Clean Power Plan or his reversal of Obama's decision on the Keystone XL pipeline.  Feeding fossil fuels and starving clean energy is established orthodoxy; it comes straight out of the Reagan and Bush playbooks.

In fact, the only thing that's new and evolving about Trump's energy policy is the context. Climate change impacts are accelerating visibly; so is the growth of renewable energy. With or without the administration's help, energy policy must evolve to reflect this new reality.

Meanwhile, Trump’s proposals are old energy policy.  His budget plan would gut Obama’s environmental and energy programs just as Reagan did Carter’s. Reagan slashed renewables R&D 85 percent, rolled back fuel efficiency standards and killed the wind investment tax credit, effectively strangling renewables in their cradle.

Trump’s "America First Energy Plan," released last month, is a reprise of the 2001 Bush/Cheney energy plan drafted by oil and gas insiders. Both emphasize increased fossil fuel production on federal lands while doubling down on the most polluting ones. Cheney paid lip service to tax credits for renewables, but dismissed them as “years down the road.” Trump’s plan omits the words “renewable energy” entirely.

Yet renewables are integral to America's energy mix, growing faster and creating more jobs than any other form of energy.  New renewables installations outstrip new fossil fuel and nuclear capacity combined, more than two to one. Solar creates one of every 50 new American jobs — more than oil, gas and coal extraction combined.  While nuclear, oil and coal are shrinking rapidly and natural gas is growing only slowly, renewables’ are surging. Solar grew twelvefold since 2011 — 17 times faster than the overall economy.

Read more...

Governor Cuomo and Governor Brown Reaffirm Commitment to Exceeding Targets of the Clean Power Plan

March 28 - With the announcement that the United States will begin to dismantle the Clean Power Plan, New York Governor Andrew M. Cuomo and California Governor Edmund G. Brown Jr. today issued the following statement reaffirming their ongoing commitment to exceed the targets of the Clean Power Plan and curb carbon pollution:

"Dismantling the Clean Power Plan and other critical climate programs is profoundly misguided and shockingly ignores basic science. With this move, the Administration will endanger public health, our environment and our economic prosperity.
 
"Climate change is real and will not be wished away by rhetoric or denial. We stand together with a majority of the American people in supporting bold actions to protect our communities from the dire consequences of climate change.
 
"Together, California and New York represent approximately 60 million people – nearly one-in-five Americans – and 20 percent of the nation’s gross domestic product. With or without Washington, we will work with our partners throughout the world to aggressively fight climate change and protect our future."

New York and California lead the nation in ground-breaking policies to combat climate change. Both states – which account for roughly 10 percent of greenhouse gas emissions in the United States – have adopted advanced energy efficiency and renewable energy programs to meet and exceed the requirements of the Clean Power Plan and have set some of the most aggressive greenhouse gas emission reduction targets in North America – 40 percent below 1990 levels by 2030 and 80 percent below 1990 levels by 2050. New York and California will continue to work closely together – and with other states – to help fill the void left by the federal government.

Read more...