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National Times

Gas is the way to go, if only we could

Belinda Robinson
November 5, 2010

Opinion

Mark Twain grumbled that everyone talked about the weather, but nobody did anything about it. Today energy supply would more likely be the subject of his despondency.

Rising electricity prices and climate change inaction are unsettling many, but a satisfying public discussion is being hampered by an inability to cut through the complexity of the issues, the tendency to discuss climate change policy in isolation from energy security, and a failure to expose the contradictions that characterise many positions being advocated.

An informed public discussion on long-term energy security is overdue.

NSW will need about 60 per cent more electricity in 2030 than it does today. In carbon intensity, NSW's electricity supply is second only to brown coal-powered Victoria, and it has the highest rate of sulphur dioxide emissions because about 90 per cent of NSW electricity is sourced from coal.

If this is to change, the most difficult first step will be to publicly acknowledge that shifting to a cleaner energy mix that is also affordable and reliable will be more challenging than the spruikers of easy solutions suggest.

How will NSW keep the lights on in the decades ahead?

Our economy and lifestyles have evolved thanks to enormous and cheap supplies of coal. But some no longer consider this acceptable, and demand a move to less carbon-intensive sources of energy but without, presumably, wanting to pay significantly more for it. This cost consideration immediately rules out the widespread use of wind, solar and possibly even nuclear, despite Australia possessing the world's largest reserves of uranium.

Last week the NSW government wound back its solar power subsidy, partly because it was apparently costing as much as $640 to reduce each tonne of carbon dioxide, about 27 times more than the emissions trading scheme shelved by the federal government.

Other renewable energy sources also have their opponents. One of the country's most promising geothermal projects near Geelong, which received $12 million in state and federal government support, has faced local opposition. This week the Australian Environment Foundation publicly noted community opposition to several Victorian wind farms because of high energy cost, health fears and their paltry contribution to greenhouse emission reductions.

The NSW gas industry faces similar issues. Though gas-fired power stations emit up to 70 per cent less greenhouse gas emissions than existing coal-fired plants, the industry's expansion is stridently and paradoxically opposed by the Greens and other environmentalists.

In Queensland, a decade of policies encouraging gas use has unearthed a massive coal seam gas endowment, which could be replicated in NSW. Coal seam gas supplies 90 per cent of Queensland's gas and this week British Gas committed $US15 billion to the world's first LNG export plant using coal seam gas as feedstock.

Yet in NSW gas delivers about 3 per cent of electricity. NSW only produces 4 per cent of the gas it uses. Clearly there is room for NSW to draw on its massive natural gas resources to diversify its energy mix and, in doing so, start to move to substantially de-carbonise its energy base.

The Greens have described climate change as "the greatest threat to our world in human history [which] requires urgent local, national and global action". Yet their political response is to oppose, at every turn, the development of Australia's gas industry.

In the next 20 years, if natural gas, together with 20 per cent renewable energy (the federal target), were used to replace coal-fired generation as it is phased out, greenhouse gas emissions would fall 20 per cent while electricity production doubled.

NSW needs more energy - and it needs cleaner, affordable energy. Outright opposition to viable and sensible energy options is not only a vote for the status quo, it impedes the thoughtful and intelligent energy debate that we need to have.

Voltaire said perfect is the enemy of good. We can continue to hold out for ''perfect'' - affordable, no-emission energy - but if we do, we will be sacrificing good - cleaner, affordable energy - and accepting that future energy policy is simply more of the same.

Belinda Robinson is chief executive of the Australian Petroleum Production and Exploration Association.

 

41 comments

  • Belinda should talk to an engineer without a vested interest in gas.

    Once you have gas in a pipeline, better to send it to its point of use for heating, cooking, hot water etc, where you get 100% bang for your buck in calorific terms.

    Belinda's idea of burning gas to generate electricity involves massive losses of 40% at best on current schemes. This means we'd be throwing away 40% of this magnificent (finite) resource as we use it, so that this, and maybe next generation can claim to have made reduction in CO2 emissions intensity.

    Will our grandchildren really thank us for squandering the globe's gas resources?

    Commenter
    Ella
    Location
    Sydney
    Date and time
    November 05, 2010, 9:04AM
  • WOW! An SMH article talking about real pollution, sulphur dioxide. But still, they get the "climate change" phrase in there too...

    Bad call SMH, bad call.

    Commenter
    Pat
    Location
    Sydney
    Date and time
    November 05, 2010, 9:09AM
  • Well said Belinda regarding any talk relevant discussion and alternatives worked out before being implemented. This makes me think that the wind has changed direction and that the polies wish the whole flawed climate ???? what ?? is way beyond anything they can do. Meanwhile we continue to finance this country by exporting the very things that we claim are causing whatever problems we think are being caused. Not clear yep that's the way I see it as well.

    Commenter
    watching you
    Location
    sydney
    Date and time
    November 05, 2010, 9:13AM
  • That's par for the course for the greens; demand change, then do everything in their power to prevent change.

    Commenter
    Mike
    Location
    Brisbane
    Date and time
    November 05, 2010, 9:35AM
  • That article from the Gas Industry representative fails the most basic standards of accuracy and honesty.
    Greenhouse gas emissions are understated.
    Contamination of water is barely mentioned.
    The most dangerous element is the toxic chemicals they inject into the groundwater - not mentioned at all.
    Denis Wilson
    Australian Water Campaigners Inc

    Commenter
    Denis of Robertson
    Date and time
    November 05, 2010, 9:37AM
  • Belinda Robinson conveniently disregards the truth about Coal Seam Methane Gas Mining, sometimes called natural gas. There is nothing clean or natural or moral about this type of mining. It has, and will, ruin our precious water tables, destroy parts of the environment and cause unforgivable suffering in peoples lives by destroying their livelihoods and their environment.
    Many people in the Coal Seam Methane Gas and related industries know this. How, in the name of common sense and basic humanitarian principles, can these people align themselves with such evil? And how can a democratically elected government sanction such ferocious and rapacious greed?

    Commenter
    Karyne Gough
    Location
    Hunter Valley
    Date and time
    November 05, 2010, 9:38AM
  • With every state government in Australia producing climate change policies that give to many concessions to the fossil Fuel companies. The Feed in tariff schemes are designed so poorly that they will not work and it is obvious that they are written to fail.
    The only country to date which has surpassed its expectations on emissions reduction is Germany, with over 25% on 1990 levels in 2010. Closely followed by china. Germany's success is manly due to Their Gross Feed in Tariff Scheme, giving the people a chance to produce electricity and make a profit to pay for the installation of solar panels on their property.
    The Australian state governments are almost facsist in their collusion with the fossil fuel corporations, and electrical generation companies.
    The perfect energy mix has already been proven to work, exept it just doesn't work for the big fossil fuel companies bottom lines.
    Giving the power to the people has proven to work, companies are to worried about their bottom line to push for progress. That is why the large renewable energy schemes will only be part of the solution.
    From the industrial revolution on wards, History shows that giving the individual the chance for profit things get done with intensity, as progress gathers pace in massive volume

    Commenter
    Lonerider
    Location
    Dandenong Ranges
    Date and time
    November 05, 2010, 9:49AM
  • At best your comments on the subject tend to gloss over the issues surrounding coal seam gas (CSG) extraction. There is no single method for extraction that works in all cases. In some countries, where the incorrect methods have been applied, the environmental consequences have been disasterous and still to be fully understood (primarily due to coal seam fires and groundwater contamination). Just because there is potential environmental good in the use of natural gas does not mean you bound ahead and do as you like in getting to that gas. So if you are finding the environmental and social concerns acting as "barriers" to the industry then it is the industry that is to blame and not the people whose future could be adversely affected by shoddy environmental safeguards. If you want support, do the job once and do it right (regardless of the cost and time - which, from my experience in the mining industry, is usually a mere fraction of what is spent on the extraction of the resource, the PR and the executive salaries). After all, who will you sell your gas to if you have managed to disaffect a sizeable portion of the populace?

    Commenter
    EddyC
    Location
    Sydney
    Date and time
    November 05, 2010, 10:28AM
  • The author points to the rarely-mentioned issue of sulphur dioxide.

    However, given Australia's eastern seaboard is blessed with world-class, low-sulphur coal deposits, she unwittingly highlights a case for the expansion of Australia's coal industry as a green initiative to displace high-sulphur coal industries in other countries.

    It makes little sense to promote Australia's export of world-class resources yet not permit their use at home.

    This article reeks of vested interest as pointed to by Ella. Coal is Australia's 'home-ground advantage" and we should exploit it prudently and not waste gas reserves on sentimentalities.

    Commenter
    Steve
    Location
    Balmain
    Date and time
    November 05, 2010, 10:33AM
  • Wow, the CEO of the Australian Petroleum Production and Exploration Association thinks we should keep investing in fossil fuels - what a huge surprise! Come on SMH, these are the same people that spent decades fighting tooth and nail to deny climate change, and now we're suddenly supposed to believe they have our best interests at heart? Anyone who realises the urgency of climate change knows we cannot keep using fossil fuels - oil, coal or gas. It's time for renewables. Yes they'll cost a bit more, but they'll soon become affordable with economies of scale. Forward-thinking and innovative ideas about our energy future are not going to be coming from the fossil fuel dinosaurs.

    Commenter
    Laura
    Location
    Newcastle
    Date and time
    November 05, 2010, 10:48AM

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