Nice try Mr Taylor, but Australia’s gas exports don’t help solve climate change



Energy Minister Angus Taylor has sought to downplay quarterly figures showing Australia’s emissions are still rising, attributing the result to the production of gas for export.
AAP

Tim Baxter, University of Melbourne

The latest report card on Australia’s greenhouse gas production is the same old news: emissions are up again. We’ve heard it before, but the news should never stop being confronting.

It’s 2019. The first assessment report of the Intergovernmental Panel on Climate Change, which outlined the serious consequences of unmitigated climate change, was released the better part of 30 years ago. But Australia is still going backwards.

Emissions from one of the sunniest and windiest countries on the planet, blessed with every possible advantage when it comes to emissions reduction potential, are still rising. How do you justify that?




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Energy and Emissions Reduction Minister Angus Taylor.
AAP

Energy and Emission Reduction Minister Angus Taylor tried to justify it by blaming gas. He said if you ignore the greenhouse gases released when producing gas for export, Australia is doing well because emissions in the March quarter fell by 0.3%.

It’s a bit like suggesting that if you ignore the cancer, smoking is completely fine. It’s untrue, and ignores the bigger part of the problem.

How does producing gas for export release fossil fuel emissions?

A mammoth share of the coal and gas that Australia produces goes to the international market.

The combustion of these fuels is not counted in Australia’s ledger, though.
This is because the United Nations Framework Convention on Climate Change counts emissions from the combustion of fossil fuels in the country where they are burned.

A protest sign at the site of a proposed liquid natural gas plant at James Price Point in Broome.
AAP

But climate change is unconcerned with our accounting rules. And Australia is the fifth largest contributor to climate change in terms of fossil fuels extracted.

But the extraction process itself also releases fossil fuels in Australia’s backyard, both through the energy used in the extraction and through leaks. These emissions are included on Australia’s ledger.

Gas is principally made up of methane, a greenhouse gas that is 30-80 times more powerful than carbon dioxide. When it leaks, it has an outsized impact on the climate – and these emissions are growing fast.

Putting our gas emissions in perspective

It is disingenuous to use the production of gas exports to explain away Australia’s poor performance on emissions reduction.

In the 2018 financial year, around one in seven tonnes of greenhouse gas emitted from Australia was released in the process of making even more greenhouse gas, from both gas and coal extraction.

That means that six in every seven tonnes of greenhouse gas Australia emits can largely be attributed to the the total absence of a national climate policy.

Author supplied.
Data source: DoEE, Australia’s Emissions Projections 2018
Author supplied.
Data source: DoEE, Australia’s Emissions Projections 2018

This policy failure has big implications. Article 4.1 of the Paris Agreement says the world must reach net-zero emissions over the entire period from 2050 to 2100. (And the IPCC says emissions must come down even faster than that if planetary warming is to stay below the critical 1.5℃ threshold).

Even if, disregarding export gas production, Australia cut emissions by 0.3% a year, at that rate net-zero emissions won’t be reached for another 333 years.

So while fossil fuel extraction is making things worse, our emissions elsewhere are hardly able to reach the net zero goal in the Paris agreement.




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Gas is not the silver bullet for any other nation

The minister and his department also made much of the idea that our gas is reducing emissions overseas. The quarterly report even contained a “special topic” talking up the benefits of Australia’s gas exports.

The logic is that by exporting gas, which is allegedly cleaner than coal, we are replacing a high emitting source with a relatively low emitting source. That logic does not hold and is not scientifically robust.

First, and most obviously, Australia exports massive amounts of coal as well as gas. We are responsible for one-fifth of the world’s thermal coal exports and more than one-half of the world’s metallurgical coal exports. It is talking out both sides of your mouth to suggest that we are reducing worldwide emissions because we are responsible for almost a quarter of the world’s exported gas, while we simultaneously export a massive amount of coal.

Origin Energy’s Australia Pacific liquefied natural gas facility at Curtis Island in north Queensland.
AAP

Second, the department and Mr Taylor relied heavily on a study by the CSIRO’s Gas Industry Social and Environmental Research Alliance (GISERA) to talk up the relative benefits of our gas exports. That study, a life-cycle assessment of the emissions from Curtis Island’s liquified natural gas processing facilities, expressly avoided testing the assumption that our gas is in fact replacing coal overseas.

We may not know the whole story, but we do know it is not true in one of the largest purchasers of Australian gas, Japan. Since the Fukushima accident in 2011 took much of Japan’s zero-emissions nuclear energy out of the mix, it has been replaced by Australian gas, which is far worse for the climate.

Third, even if our gas is substituting coal, the benefits are very small. The same GISERA study indicated that “climate benefits of natural gas replacing coal are lost where fugitive emissions [leaking gas] … are greater than 3%”.

Readers might remember this apparent example of fugitive emissions in Australia. The video shows former New South Wales Greens MP Jeremy Buckingham setting fire to the Condamine River in 2016.

Former NSW MP Jeremy Buckingham sets the Condamine River on fire.

It burned because of methane bubbling up through it, purportedly from nearby unconventional gas extraction. These emissions, the result of leaks through natural fractures in the Earth, are difficult to predict and model. They are not accurately measured in Australia, and may make gas far worse for the climate than even coal.

Even if the results of all this uncertainty come out in favour of gas, limiting global warming requires that we urgently stop burning both coal and gas. While there are substantial proven reserves around the world, much of this will have to remain unburned if we hope to avoid the worst of climate change.

The evidence of climate change is increasingly clear, yet Australia’s emissions continue to increase. Our political leaders are spinning the data and failing to act, putting our children’s future, our economy and the natural environment at risk.The Conversation

Tim Baxter, Fellow – Melbourne Law School; Senior Researcher – Climate Council; Associate – Australian-German Climate and Energy College, University of Melbourne

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Australia’s energy exports increase global greenhouse emissions, not decrease them


Frank Jotzo, Crawford School of Public Policy, Australian National University and Salim Mazouz, Australian National University

When unveiling government data revealing Australia’s rising greenhouse emissions, federal energy minister Angus Taylor sought to temper the news by pointing out that much of the increase is due to liquefied natural gas (LNG) exports, and claiming that these exports help cut emissions elsewhere.

LNG exports, Taylor argued, help to reduce global emissions by replacing the burning of coal overseas, which has a higher emissions factor than gas. In reality, Australian gas displaces a mix of energy sources, including gas from other exporters. Whether and to what extent Australian gas exports reduce emissions therefore remains unclear. Meanwhile, Australia’s coal exports clearly do increase global emissions.

The way Australia can help clean up world energy systems in the future is through large-scale production and export of renewable energy.




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In a statement accompanying the latest quarterly emissions figures, the Department of Environment and Energy stated:

Australia’s total LNG exports are estimated to have the potential to lower emissions in importing countries by around 148Mt CO₂-e [million tonnes of carbon dioxide equivalent] in 2018, if they displace coal consumption in those countries.

In truth, the assumption that every unit of Australia’s exported gas displaces coal is silly. The claim of a 148Mt saving is wrong and unfounded. The real number would be much smaller, and there could even be an increase in emissions as a result of LNG exports.

For the most part, exported gas probably displaces natural gas that would otherwise be produced elsewhere, leaving overall emissions roughly the same. Some smaller share may displace coal. But it could just as easily displace renewable or nuclear energy, in which case Australian gas exports would increase global emissions, not reduce them.

How much might gas exports really cut emissions?

Serious analysis would be needed to establish the true amount of emissions displaced by Australian gas. It depends on the specific requirements that importers have, their alternatives for domestic energy production and other imports, changes in relative prices, resulting changes in energy balances in third-country markets, trajectories for investments in energy demand and supply infrastructure, and so forth. No such analysis seems available.

But for illustration, let’s make an optimistic assumption that gas displaces twice as much coal as it does renewable or nuclear energy. Specifically, let’s assume – purely for illustration – that each energy unit of Australian exported LNG replaces 0.7 units of gas from elsewhere, 0.2 units of coal, and 0.1 units of renewables or nuclear.

Australia exported 70 million tonnes of LNG in 2018. A Department of Environment and Energy source told Guardian Australia that this amount of gas would emit 197 million tonnes of CO₂ when burned. We calculate a similar number, on the basis of official emissions factors and export statistics.

Under the optimistic and illustrative set of assumptions outlined above, we calculate that Australia’s LNG exports would have reduced emissions in importing countries by about 10 million tonnes of CO₂ per year. (See the end of the article for a summary of our calculations.)

They might equally have reduced emissions by less, or they might in fact have increased these countries’ emissions, if more renewables or nuclear was displaced than coal. But whatever the the actual number, it’s certainly a long way short of the 148 million tonnes of emissions reduction claimed by the government.

We also should consider the emissions within Australia of producing LNG. The national emissions accounting shows that the increase in national emissions of 3.5 million tonnes of CO₂-e compared with the year before is mostly because of a 22% increase in LNG exports. This means that LNG production in Australia overall may be responsible for 16 million tonnes of CO₂ emissions per year.

A full analysis of global effects would also need to factor in the emissions that would be incurred from the production of alternative energy sources displaced by Australia’s LNG.




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Coal exports unambiguously raise emissions

The picture is more clear-cut for coal. If there was no Australian thermal coal (the type used in power stations) in world markets, much of this would be replaced by more coal mined elsewhere. The remainder would be replaced by gas, renewables or nuclear. As for the case of gas, the precise substitution effects are a matter of complex interactions.

The crucial point is that all alternative fuels are less emissions-intensive than coal. In the substitution of Australian-mined coal for coal from other sources, there could be some substitution towards coal with higher emissions factors, but this is highly unlikely to outweigh the emissions savings from the substitution to nuclear, renewables and gas.

So, removing Australian coal from the world market would reduce global emissions. Conversely, adding Australian coal to the world market would increase global emissions.

Australia exported 208 million tonnes of thermal coal in 2018, which according to the official emissions factors would release 506 million tonnes of CO₂ when burned. On top of this, Australia also exported 178 million tonnes of coking coal for steel production.

If a similar “replacement mix” assumed above for gas is also applied to coal – that is, every unit of coal is replaced by 0.7 units of coal from elsewhere, 0.2 units of gas, and 0.1 units of renewables or nuclear – then adding that thermal coal to the international market would increase emissions by about 19% of the embodied emissions in that coal. As in the case of LNG, this is purely an illustrative assumption.

So, in this illustrative case, Australia’s thermal coal exports would increase net greenhouse emissions in importing countries by about 96 million tonnes per year.

This figure does not consider the coking coal exports, nor the emissions from mining the coal in Australia and transporting it.

The real opportunity is in export of renewable energy

Thankfully, there actually is a way for Australia to help the world cut emissions, and in a big way. That is by producing large amounts of renewable energy for export, in the form of hydrogen, ammonia, and other fuels produced using wind and solar power and shipped to other countries that are less blessed with abundant renewable energy resources.

Even emissions-free production of energy-intensive goods like aluminium and steel could become cost-competitive in Australia, given the ever-falling costs of renewable energy and the almost unlimited potential to produce renewable energy in the outback. Australia really could be a renewable energy superpower.

Such exports will then unambiguously reduce global emissions, because they will in part displace the use of coal, gas and oil.

Once we have a large-scale renewable energy industry in operation, the relevant minister in office then will be right to point out Australia’s contribution to solving the global challenge through our energy exports. In the meantime, our energy exports are clearly a net addition to global emissions.


Summary of data and calculations

LNG emissions and displacement – illustrative scenario

Emissions inherent in Australia’s LNG exports of 69.5 million tonnes (in calendar year 2018) are 197 million tonnes (Mt) of carbon dioxide, based on emissions factors published by the Australian government.

If the same amount of energy was served using coal, emissions would be:

197Mt CO₂ + 148Mt CO₂ = 345Mt CO₂

Emissions under the mix assumed for illustration here would be:

0.7 x 197 (LNG) + 0.2 x 345 (coal) + 0.1 x 0 (renewables/nuclear) = 207Mt CO₂

That is 10Mt higher than without Australian LNG.

Coal emissions and displacement – illustrative scenario

Australia’s thermal coal exports were 208Mt in calendar year 2018. Emissions when burning this coal were 506Mt CO₂, based on government emissions factors.

Assuming typical emissions factors for fuel use in electricity generation of 0.9 tonnes of CO₂ per megawatt-hour (MWh) from black coal and 0.5 tonnes of CO₂ per MWh from gas, the emissions intensity of electricity generation under the mix assumed for illustration here would be:

0.7 x 0.9 (coal) + 0.2 x 0.5 (gas) + 0.1 x 0 (renewables/nuclear) = 0.73 tonnes CO₂ per MWh

This is 19% lower than the emissions intensity of purely coal-fired electricity, of 0.9 tonnes CO₂ per MWh.

19% of 506Mt CO₂ is 96Mt CO₂.The Conversation

Frank Jotzo, Director, Centre for Climate Economics and Policy, Crawford School of Public Policy, Australian National University and Salim Mazouz, Research Manager, Crawford School of Public Policy; and Director at EcoPerspectives, Australian National University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

How hydrogen power can help us cut emissions, boost exports, and even drive further between refills



File 20180823 149484 hfrzfk.jpg?ixlib=rb 1.1
Could this be the way to fill up in future?
CSIRO, Author provided

Sam Bruce, CSIRO

Hydrogen could become a significant part of Australia’s energy landscape within the coming decade, competing with both natural gas and batteries, according to a new CSIRO roadmap for the industry.

Hydrogen gas is a versatile energy carrier with a wide range of potential uses. However, hydrogen is not freely available in the atmosphere as a gas. It therefore requires an energy input and a series of technologies to produce, store and then use it.

Why would we bother? Because hydrogen has several advantages over other energy carriers, such as batteries. It is a single product that can service multiple markets and, if produced using low- or zero-emissions energy sources, it can help us significantly cut greenhouse emissions.

Potential uses for hydrogen.
CSIRO, Author provided

Compared with batteries, hydrogen can release more energy per unit of mass. This means that in contrast to electric battery-powered cars, it can allow passenger vehicles to cover longer distances without refuelling. Refuelling is quicker too, and is likely to stay that way.

The benefits are potentially even greater for heavy vehicles such as buses and trucks which already carry heavy payloads, and where lengthy battery recharge times can affect business models.




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Hydrogen can also play an important role in energy storage, which will be increasingly necessary both in remote operations such as mine sites, and as part of the electricity grid to help smooth out the contribution of renewables such as wind and solar. This could work by using the excess renewable energy (when generation is high and/or demand is low) to drive hydrogen production via electrolysis of water. The hydrogen can then be stored as compressed gas and put into a fuel cell to generate electricity when needed.

Australia is heavily reliant on imported liquid fuels and does not currently have enough liquid fuel held in reserve. Moving towards hydrogen fuel could potentially alleviate this problem. Hydrogen can also be used to produce industrial chemicals such as ammonia and methanol, and is an important ingredient in petroleum refining.

Further, as hydrogen burns without greenhouse emissions, it is one of the few viable green alternatives to natural gas for generating heat.

Our roadmap predicts that the global market for hydrogen will grow in the coming decades. Among the prospective buyers of Australian hydrogen would be Japan, which is comparatively constrained in its ability to generate energy locally. Australia’s extensive natural resources, namely solar, wind, fossil fuels and available land lend favourably to the establishment of hydrogen export supply chains.

Why embrace hydrogen now?

Given its widespread use and benefit, interest in the “hydrogen economy” has peaked and troughed for the past few decades. Why might it be different this time around? While the main motivation is hydrogen’s ability to deliver low-carbon energy, there are a couple of other factors that distinguish today’s situation from previous years.

Our analysis shows that the hydrogen value chain is now underpinned by a series of mature technologies that are technically ready but not yet commercially viable. This means that the narrative around hydrogen has now shifted from one of technology development to “market activation”.

The solar panel industry provides a recent precedent for this kind of burgeoning energy industry. Large-scale solar farms are now generating attractive returns on investment, without any assistance from government. One of the main factors that enabled solar power to reach this tipping point was the increase in production economies of scale, particularly in China. Notably, China has recently emerged as a proponent for hydrogen, earmarking its use in both transport and distributed electricity generation.

But whereas solar power could feed into a market with ready-made infrastructure (the electricity grid), the case is less straightforward for hydrogen. The technologies to help produce and distribute hydrogen will need to develop in concert with the applications themselves.

A roadmap for hydrogen

In light of this, the primary objective of CSIRO’s National Hydrogen Roadmap is to provide a blueprint for the development of a hydrogen industry in Australia. With several activities already underway, it is designed to help industry, government and researchers decide where exactly to focus their attention and investment.

Our first step was to calculate the price points at which hydrogen can compete commercially with other technologies. We then worked backwards along the value chain to understand the key areas of investment needed for hydrogen to achieve competitiveness in each of the identified potential markets. Following this, we modelled the cumulative impact of the investment priorities that would be feasible in or around 2025.


CSIRO, Author provided

What became evident from the report was that the opportunity for clean hydrogen to compete favourably on a cost basis with existing industrial feedstocks and energy carriers in local applications such as transport and remote area power systems is within reach. On the upstream side, some of the most material drivers of reductions in cost include the availability of cheap low emissions electricity, utilisation and size of the asset.




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The development of an export industry, meanwhile, is a potential game-changer for hydrogen and the broader energy sector. While this industry is not expected to scale up until closer to 2030, this will enable the localisation of supply chains, industrialisation and even automation of technology manufacture that will contribute to significant reductions in asset capital costs. It will also enable the development of fossil-fuel-derived hydrogen with carbon capture and storage, and place downward pressure on renewable energy costs dedicated to large scale hydrogen production via electrolysis.

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The Conversation

In light of global trends in industry, energy and transport, development of a hydrogen industry in Australia represents a real opportunity to create new growth areas in our economy. Blessed with unparalleled resources, a skilled workforce and established manufacturing base, Australia is extremely well placed to capitalise on this opportunity. But it won’t eventuate on its own.

Sam Bruce, Manager, CSIRO Futures, CSIRO

This article was originally published on The Conversation. Read the original article.