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Gas Fired Power Generation Not So Perfect
Despite recent commentary from gas industry stakeholders, it seems gas fired power generation is not as low-emission as suggested.
In what to CarbonEdge has seemed like a coordinated effort in recent weeks, the significant gas stakeholders have been shouting from the rooftops about the capacity of natural gas to significantly reduce Australia's emissions. It seems that ever since the Gorgon export gas deal was announced with some criticism from Australian energy users about the loss of resource, that the natural gas industry has come out of the blocks, trying to demonstrate it has sufficient capacity and intention for Australia and international markets.
First there was Santos CEO David Knox saying that natural gas represented "...an, immediate proven way to transform baseload power away from high-carbon coal to low-carbon gas, buying time for advances in renewable technologies." At the time CarbonEdge found this proposition more than just a little too cute.
More recently, the Australian Pipeline Industry Association's submission to the Victorian Government's Climate Change Green Paper has suggested the state could reduce its emissions by 25% by switching baseload power generation from brown coal to gas. No doubt a few pipes will be needed for that!
But of most interest, the Association emphasies in its brief submission, the bias towards renewable energies in public policy and funding. In bold type, the submission states, "APIA considers the extensive Government policy focus on technologies for renewable energy and "clean coal" will reduce the impetus to invest in natural gas, the clear and obvious alternative - and cleaner - fuel, and the most efficient way to reduce Australia's carbon emissions." Click here for the full submission.
The point about the emphasis on renewable energies is right in CarbonEdge's view and one that needs proper attention from Government. We are aware of a number of industries that are seeking assurances that government will continue to fund the development of gas transmission systems as well as the less reliable and below baseload solar and wind energy generators. CarbonEdge subscribers can log in and review the articles from the September 2009 edition for more details.
At the same time, the CEO of the Global Carbon Capture and Storage Institute, Nick Otter, has pointed out that even natural gas emits CO2 and will require advanced carbon capture and storage technologies to make it a truly low-emission baseload power source. For more information on the Institute, click here to visit its website.
2nd October 2009
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