Jun 2007 - Australian Institute of Energy
Jun 2007 - Australian Institute of Energy
Jun 2007 - Australian Institute of Energy
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EnErgy nEws<br />
Official JOurnal Of the australian institute Of energy Vol. 25 No. 2 <strong>Jun</strong>e <strong>2007</strong><br />
Web www.aie.org.au<br />
Print Post Approved — PP 326043/00001<br />
In this Issue<br />
• <strong>Energy</strong> & the Law<br />
• Emissions Trading<br />
• Methane to Markets<br />
• <strong>Australian</strong> OPAL<br />
• The Budget<br />
And, introducing…<br />
• The Inbox
PRESIDENT<br />
Murray Meaton<br />
Economics Consulting Services<br />
Ph: (08) 9315 9969<br />
email: murray@econs.com.au<br />
VICE-PRESIDENT & WEBMASTER<br />
Tony Forster<br />
Forster Engineering Services<br />
Ph: (03) 9796 8161<br />
email: forster@ozonline.com.au<br />
TREASURER<br />
David Allardice<br />
Ph: (03) 9874 1280<br />
Mobile: 0418 100 361<br />
email: allad@bigpond.net.au<br />
SECRETARY<br />
Paul McGregor<br />
McGregor & Associates<br />
Ph: (02) 9418 9544<br />
email: paul@pmac.com.au<br />
Rob Fowler<br />
Abatement Solutions - Asia Pacific<br />
Ph: (02) 8347 0883<br />
Mobile: 0402 298 569<br />
email: rob.fowler@abatementsolutionsap.com<br />
Malcolm Messenger<br />
Messenger Consulting Group<br />
Ph: (08) 8361 2155<br />
email: mjmessenger_aie@yahoo.com.au<br />
Colin Paulson<br />
Ph: (02) 4393 1110<br />
Mobile: 0422 030 830<br />
email: vivcol@adsl.on.net<br />
A I E BOArD <strong>2007</strong><br />
Tony Vassallo<br />
Ph: (02) 9810 2216<br />
email: tvassallo@invenergy.com<br />
Gerry Watts<br />
Ph: (03) 6259 3013<br />
Mobile: 0418 352 543<br />
email: gapwatts@bigpond.com<br />
BRANCH REPRESENTATIVES<br />
BRISBANE<br />
Andrew Dicks<br />
Ph: (07) 3365 3699<br />
email: andrewd@cheque.uq.edu.au<br />
CANBERRA<br />
Ross Calvert<br />
Ph: (02) 6241 2856<br />
Mobile: 0404 822 300<br />
email: rcalvert@homemail.com.au<br />
EDITOR<br />
Joy Claridge<br />
PO Box 298, Brighton, VIC 3186<br />
Ph: (03) 9596 3608<br />
Mobile: 0402 078 071<br />
email: editor@aie.org.au<br />
SECRETARIAT<br />
<strong>Australian</strong> <strong>Institute</strong> <strong>of</strong> <strong>Energy</strong><br />
PO Box 534, Raymond Terrace, NSW 2324<br />
Ph: 1800 629 945<br />
Fax: (02) 4964 9599<br />
email: aie@aie.org.au
ISSN 1445-2227 (International Standard Serial<br />
Number allocated by the National Library <strong>of</strong><br />
Australia)<br />
THE AUSTRALIAN<br />
INSTITUTE OF ENERGY<br />
<strong>Energy</strong><br />
News<br />
JOURNAL CORRESPONDENCE<br />
Joy Claridge<br />
PO Box 298<br />
Brighton, VIC 3186<br />
email: editor@aie.org.au<br />
ADVERTISING<br />
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Email: respub@access.net.au<br />
Advertisements can include products,<br />
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and required.<br />
Discounts are available for members<br />
and for all advertisements repeated<br />
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SUBSCRIPTION INFORMATION<br />
<strong>Energy</strong> News is published by<br />
The <strong>Australian</strong> <strong>Institute</strong> <strong>of</strong> <strong>Energy</strong> and<br />
is provided to all members as part <strong>of</strong> the<br />
membership subscription. Non-members<br />
may obtain copies <strong>of</strong> this journal by<br />
contacting either the Secretary or the Editor.<br />
CONTRIBUTORS WELCOME<br />
Articles on energy matters, letters to<br />
the editor, personal notes and photographs<br />
<strong>of</strong> those involved in the energy sector are<br />
most welcome.<br />
PUBLISHED BY<br />
The <strong>Australian</strong> <strong>Institute</strong> <strong>of</strong> <strong>Energy</strong>,<br />
ABN 95 001 509 173<br />
Registered Office<br />
78 Masonite Road, Tomago, NSW 2322<br />
Postal Address<br />
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Web Address<br />
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Print Post Approved No. PP 32604/00001<br />
DISCLAIMER<br />
Although publication <strong>of</strong> articles<br />
submitted is at the sole and absolute<br />
discretion <strong>of</strong> the <strong>Australian</strong> <strong>Institute</strong><br />
<strong>of</strong> <strong>Energy</strong>, statements made in this<br />
journal do not necessarily reflect<br />
the views <strong>of</strong> the <strong>Institute</strong>.<br />
CONTENTS<br />
President’s Message 30<br />
Around the Branches<br />
Emissions Trading 33<br />
Corporate Member Pr<strong>of</strong>ile<br />
Blake Dawson Waldron 35<br />
Young <strong>Energy</strong> Pr<strong>of</strong>essionals<br />
AIE Member Pr<strong>of</strong>ile<br />
Hydrogen Matters<br />
Articles<br />
Methane to Markets Partnership 39<br />
Science Writers and <strong>Energy</strong> 41<br />
Australia’s New Reactor 42<br />
Budget <strong>2007</strong> 43<br />
The Darwin Declaration 45<br />
Getting the Most from a Legal Team 47<br />
The Inbox<br />
Calendar<br />
29 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong><br />
31<br />
36<br />
37<br />
38<br />
48<br />
52
Raising our pr<strong>of</strong>ile<br />
Murray Meaton,<br />
President <strong>of</strong> the<br />
<strong>Australian</strong> <strong>Institute</strong> <strong>of</strong> <strong>Energy</strong><br />
This is an exciting time to be a part<br />
<strong>of</strong> the energy industry in Australia.<br />
Commonwealth, state and territory<br />
governments are reviewing energy<br />
sources and use options. Governments<br />
are competing to regain the upper<br />
hand with effective mechanisms to<br />
reduce the impact <strong>of</strong> fossil fuel use<br />
on the environment. Businesses are<br />
striving to reinvent themselves in<br />
a new paradigm that better reflects<br />
the shifting community attitudes to<br />
environmental impacts and service<br />
standards. AIE branches across<br />
the country are responding to this<br />
energetic debate. Most branches have<br />
scheduled busy programs for <strong>2007</strong> with<br />
a commitment to promote an informed<br />
energy discussion.<br />
I am honoured to have been selected<br />
to lead this <strong>Institute</strong> for <strong>2007</strong>. My<br />
wish is that we can raise the pr<strong>of</strong>ile <strong>of</strong><br />
the organization and make a positive<br />
contribution to policy development.<br />
From the boardroom<br />
To this end, with the assistance <strong>of</strong><br />
other board members, I contributed to<br />
a substantial article in the <strong>Australian</strong><br />
Financial Review entitled “Industry<br />
report finds unis lacking in energy”.<br />
The article reported on the <strong>Australian</strong><br />
Technology Network’s (ATN’s) recent<br />
survey <strong>of</strong> the energy sector which<br />
found “…that 60% <strong>of</strong> respondents did<br />
not think university energy-related<br />
education was up to scratch”. The AIE<br />
was quoted extensively along with<br />
the ATN and the <strong>Energy</strong> Networks<br />
Association (see box).<br />
The board is well aware <strong>of</strong> the risks<br />
involved in seeking a higher pr<strong>of</strong>ile.<br />
The media highlights the controversial<br />
and quickly moves away from the<br />
complex issues that are not readily<br />
packaged into ‘black and white’<br />
options. Despite this, we are convinced<br />
that the benefits to us all outweigh the<br />
risks involved.<br />
A first step in our vision for a higher<br />
pr<strong>of</strong>ile is the creation <strong>of</strong> an ‘expert<br />
panel’ database. All AIE members are<br />
being asked to indicate areas <strong>of</strong> expertise<br />
when completing subscription renewals<br />
this year, including their willingness<br />
to provide media comment. We will<br />
provide guidelines for those willing to<br />
join the panel. Our experts may speak<br />
as members <strong>of</strong> the <strong>Institute</strong>, but not on<br />
behalf <strong>of</strong> the <strong>Institute</strong>. Branches and the<br />
national board would like to hear from<br />
any members with ideas to help raise<br />
our pr<strong>of</strong>ile, and further the goals <strong>of</strong> the<br />
<strong>Institute</strong>. Send a message to us at aie@<br />
aie.org.au. I look forward to sharing this<br />
year with all members <strong>of</strong> the <strong>Australian</strong><br />
<strong>Institute</strong> <strong>of</strong> <strong>Energy</strong>.<br />
At its recent <strong>Jun</strong>e quarter meeting, the AIE Board agreed the following support<br />
for branches:<br />
• funds for Canberra and Hobart Branches to facilitate expansion programs<br />
• funds for all branches (up to $1,000 each in <strong>2007</strong>–08) to promote the <strong>Institute</strong><br />
in their respective geographic locations.<br />
These initiatives will support volunteer committees in their efforts to raise the<br />
pr<strong>of</strong>ile <strong>of</strong> the <strong>Australian</strong> <strong>Institute</strong> <strong>of</strong> <strong>Energy</strong>. To find out more, contact aie@aie.<br />
org.au.<br />
President’s Message<br />
Excerpt from AFR<br />
16 April <strong>2007</strong><br />
The national president <strong>of</strong> the<br />
<strong>Australian</strong> <strong>Institute</strong> <strong>of</strong> <strong>Energy</strong>,<br />
Murray Meaton told The <strong>Australian</strong><br />
Financial Review that many<br />
organisations, including universities,<br />
had “struggled to keep up” as energy<br />
issues changed rapidly with pressures<br />
such as global warming.<br />
“The emerging issues such as<br />
emissions trading, renewable<br />
applications in grid systems, efficient<br />
use <strong>of</strong> energy, nuclear policy and<br />
more effective means <strong>of</strong> promoting<br />
competition in energy supplies all<br />
need to be addressed,” Mr Meaton<br />
said.<br />
“Nuclear energy has been overlooked<br />
and it is hard to blame universities<br />
when a number <strong>of</strong> state governments<br />
are reluctant to entertain any<br />
informed discussion.”<br />
Mr Meaton said the energy debate has<br />
move rapidly in recent years and the<br />
federal government white paper was<br />
“well out <strong>of</strong> date”. Industry would<br />
contribute to the development <strong>of</strong> new<br />
policy measures but government had<br />
to take the lead.<br />
<br />
Mr Meaton pointed to a shortfall <strong>of</strong><br />
graduates in technical areas <strong>of</strong> energy<br />
supply and use, which he said had<br />
become less attractive to university<br />
entrants. The ageing pr<strong>of</strong>ile <strong>of</strong> the<br />
workforce also meant most technical<br />
areas, such as electrical engineering,<br />
faced staff shortages as engineers<br />
moved into retirement.<br />
30 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
Sydney Branch was busy in the first quarter <strong>of</strong> <strong>2007</strong>. The event on 2 April ‘sneaks’<br />
into first quarter events because <strong>of</strong> its relevance to September issue’s special feature.<br />
MELBOURNE<br />
• Melbourne Branch hosted a site visit to the <strong>Energy</strong><br />
Training Centre at Gippsland TAFE Chadstone campus<br />
on 8 March <strong>2007</strong>.<br />
PERTH<br />
• Dr Laurence Mann, Research Manager, Seapower<br />
Pacific Ltd, presented “Towards the Generation <strong>of</strong> Base<br />
Load Electricity and Potable Water from Wave <strong>Energy</strong>”<br />
on 13 March <strong>2007</strong>.<br />
SOUTH AUSTRALIA<br />
• Mr Terry Kallis, CEO, Petratherm, presented “Hot Rocks<br />
in South Australia: Petratherm’s approach to exploration<br />
and development” on 28 March <strong>2007</strong>.<br />
SYDNEY<br />
• Pr<strong>of</strong> Stuart White, University <strong>of</strong> Technology Sydney,<br />
presented “A Tale <strong>of</strong> Two Infrastructures: The future <strong>of</strong><br />
water and energy use in our cities” at the annual meeting<br />
<strong>of</strong> four societies on 28 February <strong>2007</strong>.<br />
• Mr Martin Thomas AM, member <strong>of</strong> the UMPNER<br />
review panel, presented “Uranium Mining, Processing<br />
and Nuclear <strong>Energy</strong> – Opportunities for Australia” on<br />
5 March <strong>2007</strong>.<br />
• The Young <strong>Energy</strong> Pr<strong>of</strong>essionals Working Group enjoyed<br />
an evening presentation <strong>of</strong> “Twelve Steps to Effective<br />
Writing” on 22 March <strong>2007</strong>.<br />
• Mr Tony Beck, Coordinator, Australasian Emissions<br />
Trading Forum, and Ms Anthea Harris, Project Leader<br />
for the National Emissions Trading Taskforce, presented<br />
“Emissions Trading: International and domestic<br />
perspectives” on 2 April <strong>2007</strong>. See page 33.<br />
Read both sides!<br />
Subscription Invoices <strong>2007</strong>–08<br />
Around the Branches<br />
BRANCH AND DIVISION SECRETARIES<br />
Brisbane<br />
Dr Patrick Glynn<br />
Ph: (07) 3327 4636, Fax: (07) 3327 4455<br />
Mob: 0409 610 823<br />
email: Patrick.Glynn@csiro.au<br />
Canberra<br />
Ross Calvert (Acting Secretary)<br />
Ph: (02) 6241 2865<br />
email: rcalvert@homemail.com.au<br />
Hydrogen Division<br />
Brad Ladewig<br />
Ph: (07) 3346 1413, Fax: (07) 3365 4199<br />
email: b.ladewig@uq.edu.au<br />
Melbourne<br />
Chris Hamilton<br />
C H <strong>Energy</strong> Pty Ltd<br />
Tel. (03) 9852 9339<br />
Mob: 0408 997 305<br />
email: chenergy@bigpond.net.au<br />
Newcastle<br />
Jim Kelty<br />
Ph: (02) 4961 6544<br />
email: jim.kelty@advitech.com.au<br />
Perth<br />
Sam Bartholomaeus<br />
Office <strong>of</strong> <strong>Energy</strong><br />
email: sam.bartholomaeus@energy.wa.gov.au<br />
South Australia<br />
Brad Gay<br />
Ph: (08) 8226 1385<br />
email: gay.bradley2@saugov.sa.gov.au<br />
Sydney<br />
David Hemming<br />
NSW Department <strong>of</strong> Water and <strong>Energy</strong><br />
Ph: (02) 8281 7406, Fax: (02) 8281 7451<br />
email: david.hemming@dwe.nsw.gov.au<br />
Tasmania<br />
Sue Fama<br />
Ph: (03) 6230 5305<br />
email: sue.fama@hydro.com.au<br />
Members should have recently received their <strong>2007</strong>–08 subscription invoices. These forms are double sided and request<br />
additional details on the reverse side. The additional details are in three parts:<br />
1. A request for members to indicate their expertise and interests in energy categories which will be used to update our<br />
membership database. The current categories in the database are a mix <strong>of</strong> categories collected over the last 30 years and<br />
we now plan to standardise the categories for consistency.<br />
2. Members are requested to indicate whether they are willing to handle media inquiries. The <strong>Institute</strong> <strong>of</strong>ten receives requests<br />
from the media for information and opinion and is therefore considering creating a panel <strong>of</strong> experts who can field such<br />
requests. Members will communicate their opinions as members <strong>of</strong> the AIE but not as statements <strong>of</strong> policy <strong>of</strong> the AIE.<br />
3. We are trialling an EFT payment option. Members who wish to use this option are requested to follow the instructions<br />
on the reverse side <strong>of</strong> the subscription form.<br />
31 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
FORTHCOMING AIE EVENTS<br />
Note, not all forthcoming AIE events are listed here. To keep<br />
up-to-date with what’s on, see under ‘Events’ in http://www.<br />
aie.org.au or make sure you receive the regular email notices<br />
<strong>of</strong> events by contacting aie@aie.org.au. Also, notices and<br />
registration forms will usually be available at least a month<br />
prior to the event. For Sydney events, see http://www.aie.<br />
org.au/syd/ for notices and registration forms.<br />
3 July SYDNEY<br />
Young <strong>Energy</strong> Pr<strong>of</strong>essionals meeting<br />
“The <strong>Energy</strong> Future <strong>of</strong> Australia:<br />
Discussing the Asia-Pacific Partnership<br />
on Clean Development and Climate”<br />
5.30 for 6.00 pm, University <strong>of</strong><br />
Technology Sydney, Building 10,<br />
Room 6.430.<br />
11 July SYDNEY<br />
Young <strong>Energy</strong> Pr<strong>of</strong>essionals seminar<br />
“Personal Financial Planning”<br />
by Fiducian Financial Services<br />
and Mercer Wealth Solutions<br />
5.30 for 6:00 pm at University<br />
<strong>of</strong> Technology Sydney Building 2,<br />
Room 429.<br />
24 July SYDNEY<br />
Half-day symposium<br />
“Climate Change and <strong>Energy</strong>: Challenges,<br />
opportunities and solutions”<br />
12:00 noon to 7:00 pm at Corinthian<br />
Room, Sydney Masonic Centre,<br />
Cnr Castlereagh & Goulburn Streets.<br />
27 July ADELAIDE<br />
Hon Alexander Downer,<br />
Minister for Foreign Affairs and Trade<br />
“<strong>Energy</strong> and Foreign Policy”<br />
Details to be advised.<br />
Contact gay.bradley2@saugov.sa.gov.au<br />
Call for Contributions<br />
<strong>Energy</strong> News had scheduled a special feature on Emissions<br />
Trading for this issue. However, recent announcements have<br />
made this topic more suitable for September issue. The Emissions<br />
Trading Task Group reported back to the Prime Minister on<br />
31 May <strong>2007</strong>. In <strong>Jun</strong>e, the <strong>Australian</strong> Greenhouse Office was<br />
thought to be going to expand its role in the carbon <strong>of</strong>fsets<br />
market, particularly with its Greenhouse Friendly initiative. The<br />
National Emissions Trading Taskforce (NETT) established by the<br />
state and territory governments is now expected to report in either<br />
July or August. All <strong>of</strong> these announcements are taking place<br />
after the <strong>Jun</strong>e issue content has been finalised. That being said,<br />
this issue does include an extract from the Emissions Trading<br />
Taskforce Report and an article on emissions trading based on<br />
a presentation to Sydney Branch in April. The article includes a<br />
summary <strong>of</strong> the global emissions market and an update on the<br />
design <strong>of</strong> the NETT’s emissions trading scheme.<br />
13 August SYDNEY<br />
Speaker to be advised.<br />
“Ethanol from sugar cane and biodiesel:<br />
are these real alternatives in the mix<br />
for our future fuel needs?”<br />
23 August ADELAIDE<br />
Mr Reg Nelson, CEO, Beach Petroleum<br />
“Beach Petroleum: A Rapidly Growing<br />
South <strong>Australian</strong> Oil Company”<br />
Details to be advised.<br />
Contact gay.bradley2@saugov.sa.gov.au<br />
4 September SYDNEY<br />
NSW & ACT Excellence<br />
in <strong>Energy</strong> Awards<br />
9 October SYDNEY<br />
Young <strong>Energy</strong> Pr<strong>of</strong>essionals Meeting<br />
Nicole Rothmann, The Nous Group<br />
“Communication and influencing skills”<br />
16 October SYDNEY<br />
Joint symposium with CSIRO<br />
“Distributed Generation”<br />
29 November SYDNEY<br />
Young <strong>Energy</strong> Pr<strong>of</strong>essionals<br />
End <strong>of</strong> year meeting<br />
3 December SYDNEY<br />
Speaker to be advised.<br />
“The future <strong>of</strong> oil prices: is peak oil<br />
an issue to be addressed?”<br />
MARK YOU DIARY NOW!<br />
If your branch is organising an event for the last quarter <strong>of</strong> the<br />
year (or even early 2008), send details to editor@aie.org.au to<br />
promote the event in the September issue <strong>of</strong> <strong>Energy</strong> News.<br />
The revised schedule for special features is:<br />
September <strong>2007</strong> Emissions Trading<br />
December <strong>2007</strong> <strong>Energy</strong> Efficiency & Demand Management<br />
March 2008 <strong>Energy</strong> and Water<br />
If you have any suggestions for other 2008 topics please send<br />
them to editor@aie.org.au.<br />
The aim is to include at least two articles, and not more than four,<br />
that will give readers a better understanding <strong>of</strong> the topic. Ideally,<br />
we would like to present the different aspects <strong>of</strong> the topic and the<br />
different viewpoints in the relevant debate. Contributions should<br />
be approximately 1,500 words in length; in ‘Word’ or compatible<br />
format; and may include illustrations (original format) and<br />
photographs (jpegs <strong>of</strong> minimum 300 dpi resolution preferred).<br />
Please send contributions by no later than 3 August <strong>2007</strong> to AIE<br />
Communications Sub-Committee Chair, Rob Fowler, at rob.<br />
fowler@abatementsolutionsap.com. For further information,<br />
call Rob on (02) 8347 0883.<br />
32 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
Emissions Trading: International<br />
and domestic developments<br />
Summary by Tony Vassallo, AIE Sydney Branch<br />
Presentation to Sydney Branch (hosted by Blake Dawson Waldron) on 2 April <strong>2007</strong><br />
Tony Beck, Coordinator <strong>of</strong> the Australasian Emissions Trading<br />
Forum (AETF), had just returned from the Point Carbon<br />
Conference in Copenhagen in mid-March. He started the<br />
presentation with a summary <strong>of</strong> the global emissions market,<br />
which has seen explosive growth since early 2006. This growth<br />
has been driven by the Kyoto Protocol coming into force, the EU<br />
emissions trading scheme (Phase 1) and both state and voluntary<br />
schemes in the USA and <strong>Australian</strong> markets. In millions <strong>of</strong><br />
tonnes <strong>of</strong> CO2 equivalent, the 2006 total <strong>of</strong> 1,600 was double<br />
the 2005 total, with a value <strong>of</strong> over A$35 billion in 2006. The<br />
EU scheme comprised 62% and the CDM (Clean Development<br />
Mechanism) just under 35% <strong>of</strong> the CO2 equivalent totals.<br />
The EU scheme covered more than 12,000 installations. The<br />
Phase 1 pilot scheme is now over-supplied, but the Phase 2<br />
scheme (2008–2012) has much tighter caps and is trading at<br />
about A$27/tonne at the moment. In 2006, between three and<br />
five million tonnes per day were traded. The Phase 3 scheme<br />
is due to continue beyond 2012, and early trades have already<br />
started with a 2013 delivery <strong>of</strong> A$32/tonne.<br />
The CDM scheme has approximately 570 registered projects<br />
delivering 780 million tonnes <strong>of</strong> abatement. There are another<br />
1,000 projects in the pipeline. There is a diverse mix <strong>of</strong><br />
projects, with biomass energy, hydro, wind, energy efficiency<br />
and agriculture accounting for three-quarters <strong>of</strong> the projects.<br />
There is strong demand for the CDM projects, especially from<br />
the EU, Japan and Canada, and capital markets are already<br />
responding. The majority <strong>of</strong> projects are in India (33%), Brazil<br />
(16%), Mexico (13%) and China (8%). The main countries<br />
investing in these projects are the UK (35%), The Netherlands<br />
(17%) and Japan (11%).<br />
Figure 1: Australia’s emissions pr<strong>of</strong>ile<br />
Mr Beck also covered activities in the USA, where the cap<br />
and trade scheme across nine north-eastern states is set to<br />
start on 1 January 2009. Five other states (California, Oregon,<br />
Arizona, Washington and New Mexico) are also planning a<br />
similar scheme. The Chicago Climate Exchange is operating a<br />
voluntary trading scheme, which the <strong>Australian</strong> company AGL<br />
has already joined. There is a substantial change in attitude<br />
occurring in the USA and, coupled with congressional pressure,<br />
there is likely to be a greater engagement in emissions trading<br />
in the United States in the next three to five years.<br />
Anthea Harris, Project Leader for the National Emissions<br />
Trading Taskforce (NETT) provided an update on the progress<br />
on the state-based National Emissions Trading Scheme (NETS)<br />
design. The scheme is supported by all <strong>Australian</strong> state and<br />
territory premiers and chief ministers. On 9 February <strong>2007</strong>,<br />
they announced that NETS will commence by the end <strong>of</strong> 2010<br />
if the Commonwealth does not agree to implement an alternative<br />
scheme. The states and territories, as well as the Labor Party at<br />
a national level, are committed to a 60% reduction in national<br />
emissions by 2050.<br />
The scheme will initially apply to all power generation facilities<br />
emitting more than 25 thousand tonnes <strong>of</strong> CO2 equivalent<br />
per year from 2010, with expansion to cover all stationary<br />
energy systems above 25 thousand tonnes, as well as fugitive<br />
emissions (underground coal mines, gas production, processing<br />
and transport) and gas retailers (imputed emissions) in 2013. A<br />
review <strong>of</strong> non-covered sectors will be undertaken in 2014.<br />
The scheme is essentially a ‘cap and trade’ design, where<br />
emissions are capped at some level in each period and permits<br />
to emit greenhouse gases are issued for that period. There is a<br />
penalty for non-compliance which<br />
underpins a value for emissions,<br />
and scheme participants can trade<br />
these permits among themselves<br />
with prices set by the market.<br />
The scheme is likely to be based<br />
on 10 years <strong>of</strong> known firm caps<br />
with gateways for 10 further years<br />
beyond firm caps. The firm caps<br />
will be extended annually, with<br />
gateways updated every five years,<br />
extending them for a further five<br />
years. These gateways provide the<br />
limits within which firm annual<br />
caps may be extended. The permits<br />
will be an annual, secure property<br />
right, date stamped with the year in<br />
which it first became valid. While<br />
unlimited banking <strong>of</strong> permits will<br />
be allowed, borrowing is not.<br />
33 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
Permit allocation will be based around three categories: free<br />
allocation to some generators; free allocation to trade exposed<br />
energy-intensive industries, and auctioned permits. Ms Harris<br />
explained that the reasoning behind this approach was to try<br />
and maintain a degree <strong>of</strong> fairness for existing emitters whose<br />
pr<strong>of</strong>itability would be affected. This should help maintain<br />
shareholder value, but would only continue for the first few<br />
years <strong>of</strong> the scheme. After this period, all power generators<br />
would be required to buy permits. Free permit allocations to<br />
trade-exposed industries would be maintained until international<br />
trading agreements applied to their competitors.<br />
A penalty for non-compliance would be set at a level that caps<br />
the cost <strong>of</strong> the scheme at an acceptable level but also encourages<br />
compliance. The penalty would be applied against each tonne<br />
<strong>of</strong> emissions for which a permit had not been surrendered, and<br />
the penalty would be identical across jurisdictions. NETT is<br />
currently modelling various penalty levels. Another interesting<br />
aspect that is likely to be included is ‘<strong>of</strong>fsets’. Offsets would<br />
be those activities that could be undertaken by participants to<br />
reduce emissions and could be used to meet their obligations.<br />
Acceptable <strong>of</strong>fset activities would be aligned with those already<br />
underway in other schemes, such as the Joint Implementation<br />
(JI) mechanism under the Kyoto Protocol, providing participants<br />
with greater flexibility in how they manage their emissions<br />
reductions.<br />
There were many questions from the audience, mostly related<br />
to permit allocation and penalty levels. Readers interested in<br />
following up some <strong>of</strong> these details should go to the NETT<br />
website at www.emissionstrading.net.au and the AETF website<br />
at www.aetf.net.au.<br />
Emissions Trading: Task Force Report Key Conclusions<br />
Extract from the Executive Summary. For a copy <strong>of</strong> the full report see http://www.pmc.gov.au/<br />
emissionstrading/index.cfm<br />
Climate change is a global challenge that requires a long-term<br />
global solution in order to avoid environmental, social and<br />
economic dislocation.<br />
Curtailing greenhouse gas emissions will impose a cost both<br />
on the global economy and individual nations.<br />
Addressing climate change is a risk management issue on a<br />
global scale.<br />
The goal <strong>of</strong> reducing emissions needs to be achieved while<br />
maintaining international economic growth and development.<br />
While a comprehensive global approach to climate change is<br />
required, it will be difficult to reach international consensus in<br />
the near future.<br />
In the short to medium term, international action on climate<br />
change is likely to be focused on cooperation between countries<br />
at the bilateral, regional and plurilateral levels.<br />
Australia already has an emissions cap that is applicable until<br />
2012.<br />
On balance, there would be benefits in the <strong>Australian</strong> Government<br />
now setting a post-2012 constraint on emissions.<br />
Market-based approaches that deliver a price on carbon will<br />
achieve greenhouse gas abatement, commensurate with an<br />
emissions target, at least cost. The overriding goal <strong>of</strong> Australia’s<br />
efforts should be to lower emissions at least cost. Of the marketbased<br />
instruments, emissions trading should be preferred to a<br />
carbon tax.<br />
An <strong>Australian</strong> emissions trading scheme, with a carbon price set<br />
by the market, would improve business investment certainty.<br />
For Australia to commit to emissions trading now would place<br />
us in advance <strong>of</strong> most <strong>of</strong> the world community.<br />
A workable global emissions trading scheme is likely to evolve<br />
slowly through a patchwork <strong>of</strong> linked national and regional<br />
schemes.<br />
It is in Australia’s interest to develop a domestic emissions<br />
trading scheme that might, over time, be linked to complementary<br />
schemes in other countries. Deepening the engagement <strong>of</strong><br />
developing countries in greenhouse gas abatement will require<br />
the development <strong>of</strong> links between emissions trading and a range<br />
<strong>of</strong> other measures consistent with those countries’ economic<br />
growth and energy security objectives.<br />
An <strong>Australian</strong> scheme should be tailored to our own needs.<br />
Introduction <strong>of</strong> an <strong>Australian</strong> emissions trading scheme will<br />
require careful planning and implementation.<br />
Australia’s medium term emissions trajectory and its long-term<br />
aspirational goal must be set with great care while recognising<br />
the need for deeper emissions reductions over time.<br />
An <strong>Australian</strong> emissions trading scheme needs to take account<br />
<strong>of</strong> the trade-exposed nature <strong>of</strong> many <strong>of</strong> our emissions-intensive<br />
industries. The inclusion <strong>of</strong> trade-exposed, emissions-intensive<br />
industries in an <strong>Australian</strong> emissions trading scheme must avoid<br />
prejudicing their competitiveness but also provide them with<br />
appropriate incentives for abatement.<br />
The key design features <strong>of</strong> an <strong>Australian</strong> emissions trading<br />
model should be based on a ‘cap and trade’ model.<br />
Flexibility is vital. The operation <strong>of</strong> the scheme should be<br />
reviewed periodically, initially on a five-yearly basis, to allow<br />
calibration <strong>of</strong> the sequence <strong>of</strong> short-term emissions caps.<br />
Policy towards deployment <strong>of</strong> low-emissions technologies<br />
should be technology neutral, allowing the market to choose<br />
the least-cost solutions. Emissions trading is not a panacea. An<br />
<strong>Australian</strong> approach to reducing emissions must be national and<br />
operated by only one level <strong>of</strong> government. It will take about four<br />
years for Australia to begin full-scale emissions trading.<br />
The challenge <strong>of</strong> addressing climate change through policies<br />
<strong>of</strong> adaptation and mitigation must not be underestimated. It is<br />
highly complex. The Task Group believes the key to success<br />
is to begin at once, but to proceed with care on the basis <strong>of</strong><br />
considered and informed decisions.<br />
34 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
Blake Dawson Waldron<br />
Resources and <strong>Energy</strong> Practice<br />
Blake Dawson Waldron (BDW) is one <strong>of</strong> Australia’s leading<br />
law firms with <strong>of</strong>fices in Sydney, Melbourne, Canberra,<br />
Perth, Brisbane, Shanghai, Port Moresby and an associated<br />
<strong>of</strong>fice in Jakarta. It was named <strong>Australian</strong> Law Firm <strong>of</strong> the<br />
Year in 2006 by Chambers Global. BDW’s resources and<br />
energy practice most recently won the <strong>2007</strong> Australasian<br />
Legal Business (ALB) Award for Australia’s best energy and<br />
resources deal, as well as <strong>Australian</strong> Deal <strong>of</strong> the Year (ALB<br />
Awards 2006) and Australia’s best energy and resources<br />
practice (<strong>Australian</strong> Law Awards 2005).<br />
Companies in the resources and energy sectors represent<br />
a substantial part <strong>of</strong> BDW’s client base and the firm has<br />
experience in all the issues that arise in transactions in the<br />
mining, oil and gas, and energy sectors. Clients range from<br />
comparatively small entities to some <strong>of</strong> Australia’s largest<br />
companies, including BHP Billiton, Alinta and Woodside<br />
Petroleum, as well as international organisations. BDW’s<br />
lawyers have experience in infrastructure, engineering and<br />
construction, insurance, financing, environment and native<br />
title law, industrial relations, taxation, administrative law<br />
and property.<br />
BDW’s mining law specialists regularly assist clients<br />
by providing legal advice, undertaking negotiations and<br />
preparing documentation on their behalf, including:<br />
• application <strong>of</strong> mining legislation and other relevant<br />
legislative and regulatory regimes to proposed and existing<br />
mining projects and liaising with relevant government<br />
departments and regulatory agencies;<br />
• acquisition, management and disposal <strong>of</strong> mining assets<br />
and interests, including due diligence reviews;<br />
• financing <strong>of</strong> mining projects and capital market fund<br />
raisings;<br />
• agreements with state governments in relation to significant<br />
mining projects;<br />
• contractual agreements relating to exploration and production<br />
<strong>of</strong> minerals and the development <strong>of</strong> mining projects,<br />
including the development <strong>of</strong> project infrastructure;<br />
• contractual agreements for the transportation, marketing<br />
and sale <strong>of</strong> mineral products; and<br />
• grant <strong>of</strong> tenure and land access.<br />
BDW’s oil and gas law specialists have worked on projects<br />
in almost every major <strong>Australian</strong> and Papua New Guinean<br />
<strong>of</strong>fshore and onshore petroleum region, including the<br />
Gippsland and Otway Basins in <strong>of</strong>fshore Victoria, the Cooper-<br />
Eromanga Basin in South Australia/South-West Queensland,<br />
the Carnarvon, Bonaparte and Perth Basins in Western<br />
Corporate Member Pr<strong>of</strong>ile<br />
Australia, the Papuan Fold Belt, the North-West Shelf, and the<br />
Timor Sea. They have also worked on projects involving gas<br />
transportation on the Dampier to Bunbury natural gas pipeline,<br />
LNG, gas-to-liquids, and coal bed methane. International<br />
petroleum-related projects include the Guangdong LNG project<br />
(China), Sonatrach LNG Refinery (Algeria) and the Ravva Oil<br />
project (India). BDW can provide advice on all aspects <strong>of</strong><br />
projects for the exploration, production and use <strong>of</strong> oil and<br />
gas including regulatory approvals and issues, construction,<br />
subsea production facilities, well services, contracting and<br />
procurement, contract management, shared facilities and<br />
infrastructure, port services, industrial relations, pipelines,<br />
petroleum resource rent tax, FPSOs and floating production<br />
facilities, PSLA, operational issues, asset acquisitions and<br />
disposals, stamp duty and registration fees on transactions.<br />
BDW has extensive experience in the energy industry, acting<br />
for a number <strong>of</strong> generators, transmission operators, distribution<br />
operators and retailers Australia-wide, including:<br />
• advising on project financing for the acquisition <strong>of</strong> interests<br />
in power stations;<br />
• acting on the sale and purchase <strong>of</strong> power assets, including<br />
gas pipelines;<br />
• documenting and negotiating hedging contracts and retail<br />
sale agreements;<br />
• preparing and negotiating energy procurement and<br />
operation and management contracts for power projects;<br />
• advising on, negotiating and documenting arrangements<br />
for the construction and ownership <strong>of</strong> cogeneration<br />
facilities, electricity access, connection and supply;<br />
• advising on the regulation <strong>of</strong> utilities both to regulators<br />
and government and to bidders on projects, privatisations<br />
and private sales <strong>of</strong> utilities;<br />
• developing access arrangements under the National Access<br />
Code;<br />
• documenting and negotiating gas transportation and supply<br />
agreements; and<br />
• advising on retail market price regulation and standard<br />
contracts.<br />
Members <strong>of</strong> the national energy team are regularly involved in<br />
projects overseas in location as diverse as Mauritania, Armenia,<br />
Mongolia, Zimbabwe, Papua New Guinea and Indonesia. The<br />
BDW energy team regularly advises the Minerals Council <strong>of</strong><br />
Australia, the <strong>Australian</strong> Petroleum Production & Exploration<br />
Association Limited and the Queensland Mining Council.<br />
Involvement with peak mining and resources industry bodies<br />
and with governments in relation to resources legislation places<br />
BDW at the forefront <strong>of</strong> developments in the law.<br />
35 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
<strong>Energy</strong> News asked BDW partner,<br />
Martin Kudnig, about the key legal<br />
issues in the energy sector. Mr<br />
Kudnig is head <strong>of</strong> BDW’s natural<br />
resources and energy group. He<br />
practices mainly in resources<br />
and commercial law, including<br />
infrastructure and resource<br />
projects, the acquisition and<br />
disposal <strong>of</strong> mining and oil and gas<br />
assets and corporate and project<br />
due diligence investigations.<br />
“Emerging legal issues relate to where energy is going to<br />
come from in the future,” said Mr Kudnig.<br />
“That means taking into account climate change and<br />
greenhouse gas emissions.<br />
Mr Kudnig said that the questions raised include: Will<br />
nuclear energy be viable in Australia? What is the direction<br />
<strong>of</strong> technology such as clean coal technologies? What will<br />
be the impact <strong>of</strong> using other forms <strong>of</strong> clean energy? Will<br />
Australia embrace a carbon trading scheme? What are the<br />
timeframes for any changes in energy supply?<br />
“New forms <strong>of</strong> energy imply new laws to deal with new<br />
situations,” he said. “For example, the nuclear energy task<br />
force recommended that a central administrative body<br />
oversee mining, processing and export <strong>of</strong> uranium. Some <strong>of</strong><br />
these aspects are currently covered by state laws.”<br />
YEP group one year on<br />
Martin Kudnig<br />
Just over a year ago, AIE held its inaugural young energy<br />
pr<strong>of</strong>essionals (YEP) event in Sydney. To build on the<br />
momentum <strong>of</strong> the inaugural event and to develop suitable<br />
activities that catered for the needs <strong>of</strong> younger members,<br />
the YEP Working Group was formed. The commitment<br />
and energy <strong>of</strong> the group has created a diverse and exciting<br />
programme <strong>of</strong> events in 2006 and <strong>2007</strong>.<br />
In <strong>2007</strong>, the YEP program started with a workshop entitled<br />
“12 Steps to Effective Writing” on 22 March. This lively<br />
and informative workshop was facilitated by Verne Ordman<br />
from Verne Ordman and Associates, who presented simple<br />
techniques to assist with planning and writing documents.<br />
He also discussed conventions from the latest edition <strong>of</strong> the<br />
Commonwealth Government’s style manual.<br />
In May, the YEP Working Group hosted a seminar on<br />
“<strong>Energy</strong> Policy in New South Wales”. Participants heard<br />
presentations from Ms Liesl Baumgartner, Deputy Director<br />
General <strong>of</strong> the Department <strong>of</strong> Water and <strong>Energy</strong>, and Mr<br />
Simon Kelley, Senior Analyst with the Independent Pricing<br />
and Regulatory Tribunal. Ms Baumgartner’s presentation<br />
focused on the development <strong>of</strong> two key energy policies in<br />
BDW has been a corporate member <strong>of</strong> the AIE (through<br />
the Perth Branch) for two years. With <strong>of</strong>fices in Brisbane,<br />
Sydney, Melbourne and Perth, BDW staff attend AIE events<br />
in each <strong>of</strong> these locations. In Sydney, BDW has kindly<br />
provided its function rooms and, in some cases, catering<br />
for AIE events in 2006 and <strong>2007</strong>, the most recent being the<br />
presentation on emissions trading on 2 April.<br />
“The AIE hosts excellent presentations by senior executives<br />
and the meetings are great networking opportunities,” said<br />
Martin Kudnig.<br />
“I have recently moved to Melbourne from Perth. There, the<br />
AIE events were well-attended and all the people <strong>of</strong> importance<br />
in the energy industry were there. I am now looking forward<br />
to attending some <strong>of</strong> the events in Melbourne.<br />
“Being an <strong>Institute</strong> corporate member is a good way <strong>of</strong><br />
keeping close to the energy industry. Lawyers working in<br />
the energy sector need to have a good understanding <strong>of</strong> the<br />
industry, be familiar with the terminology, and keep up-todate<br />
with project developments.”<br />
For further information about Blake Dawson Waldron and<br />
its energy practice, contact Martin Kudnig on 03 9679 3000<br />
or martin.kudnig@bdw.com.au.<br />
Young <strong>Energy</strong> Pr<strong>of</strong>essionals<br />
New South Wales – the Greenhouse Gas Reduction Scheme<br />
(GGAS) and the New South Wales Renewable <strong>Energy</strong> Target<br />
(NRET). Participants were also given a general overview <strong>of</strong><br />
the Owen Inquiry into Electricity Supply in New South Wales,<br />
which had been announced the day before. Simon Kelley’s<br />
presentation focused on the general role <strong>of</strong> IPART in regulating<br />
infrastructure industries, as well as the implementation <strong>of</strong><br />
GGAS, which is administered by IPART.<br />
In the coming months, the YEP Working Group will be<br />
hosting events on a range <strong>of</strong> topics <strong>of</strong> relevance to younger<br />
members, including a personal financial planning seminar and<br />
a workshop on how to develop better working relationships.<br />
An energy forum on the Asian Pacific Partnership on Clean<br />
Development and Climate (AP6) is being planned for<br />
July. The forum will enable participants to gain a better<br />
understanding <strong>of</strong> AP6, and to share their views on Australia’s<br />
energy future through interactive dialogue. Further details <strong>of</strong><br />
these and other events will be sent to Sydney-based members<br />
and friends in due course. Alternatively, feel free to email<br />
Debborah.Marsh@uts.edu.au for more information.<br />
36 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
‘GETTING TO<br />
KNOW YOU’<br />
Introducing Susie Wood, Young <strong>Energy</strong> Pr<strong>of</strong>essional<br />
and winner <strong>of</strong> best overall project at the AIE National<br />
Postgraduate Student <strong>Energy</strong> Awards in 2006.<br />
How did you get involved with the <strong>Energy</strong> Industry?<br />
My undergraduate degree was in chemical engineering. I<br />
enjoyed the research on combustion I did as part <strong>of</strong> my final<br />
year thesis project, so chose to do a PhD in the same field.<br />
I’m especially interested in the environmental impacts <strong>of</strong><br />
the energy industry.<br />
What is your current job?<br />
PhD student in the School <strong>of</strong> Chemical and Biomolecular<br />
Engineering at the University <strong>of</strong> Sydney. My research is<br />
about using porous burners to burn very dilute fuels that<br />
would not normally be flammable, eg for example fugitive<br />
methane emissions from coal mines or landfills.<br />
What do you enjoy about your job?<br />
It involves a good mixture <strong>of</strong> hands-on experimental work<br />
and computer modelling, and I have lots <strong>of</strong> opportunities<br />
to communicate my research through writing papers and<br />
presenting at conferences.<br />
What is the most challenging aspect <strong>of</strong> your job?<br />
Staying focused on my thesis and not allowing myself<br />
to become too sidetracked by the many interesting but<br />
tangential topics that keep cropping up.<br />
What do you think is the biggest issue in the industry?<br />
Dealing with climate change.<br />
AIE Member Pr<strong>of</strong>ile<br />
What is your vision for the industry in say 20 years time?<br />
Dynamic and diverse: increasingly sustainable and more and<br />
more focused on carbon abatement and renewable energy<br />
technologies.<br />
How do you start your working day?<br />
With a double espresso whilst reading the Sydney Morning<br />
Herald website.<br />
Whose job do you most covet and why?<br />
Tim Flannery’s, because I’d love to be able to write that well<br />
about something I am passionate about.<br />
What is the funniest thing you’ve done or experienced?<br />
My few attempts at singing in public, or so the audiences on<br />
each occasion have told me. I would beg to differ.<br />
Who or what motivates you and why?<br />
A fast-approaching deadline for obvious reasons.<br />
What are your favourite hobbies?<br />
Racing outrigger canoes and dragon boats, scuba diving,<br />
bushwalking and reading.<br />
Currently reading<br />
“Cloudstreet” by Tim Winton.<br />
What is your favourite movie <strong>of</strong> all time?<br />
The Thomas Crown Affair (original version).<br />
What are your strengths?<br />
Working well under pressure and being interested in the<br />
big picture.<br />
What are your weaknesses?<br />
Red wine and dark chocolate.<br />
If you were stuck on a desert island, what three items<br />
would you want to have with you?<br />
A mask and snorkel (can that count as one item?), the Oxford<br />
English Dictionary, and a wind-up radio.<br />
Sydney Branch Young <strong>Energy</strong> Pr<strong>of</strong>essionals Group is a great success<br />
(see their events program on page 32)<br />
Are other branches keen to start a similar group?<br />
Yes?<br />
Then, don’t start from scratch.<br />
Get in touch with the Sydney group to discuss how to form<br />
and operate a local network <strong>of</strong> young pr<strong>of</strong>essional people in the energy sector.<br />
Email Debborah.Marsh@uts.edu.au<br />
37 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
<strong>Australian</strong> Government review <strong>of</strong> hydrogen energy<br />
AIE members will be aware <strong>of</strong> the National Hydrogen Study<br />
commissioned by the Department <strong>of</strong> Industry, Tourism<br />
and Resources and published in 2003. This was followed<br />
by the <strong>Australian</strong> Hydrogen Activity Report prepared by<br />
CSIRO in 2005. However, in the 2004 <strong>Energy</strong> White Paper,<br />
hydrogen rated barely a mention. Now, hydrogen is back<br />
on the Government’s agenda. Following the recent review<br />
<strong>of</strong> nuclear power, the House <strong>of</strong> Representatives Standing<br />
Committee on Industry and Resources is reviewing the<br />
development <strong>of</strong> the non-fossil fuel energy industry in<br />
Australia. The Committee will undertake a comparative<br />
study <strong>of</strong> the following renewable energy sectors: solar,<br />
wave, tidal, geothermal, wind and hydrogen. The study will<br />
examine the relative state <strong>of</strong> development <strong>of</strong> these sectors<br />
and their prospects for economically-viable electricity<br />
generation, storage and transmission. This means, hydrogen<br />
energy will be reviewed in the context <strong>of</strong> Australia’s energy<br />
business as a whole. Submissions for the review were invited<br />
by 15 <strong>Jun</strong>e. To keep track <strong>of</strong> this review, see http://www.aph.<br />
gov.au/house/committee/isr/renewables/index.htm.<br />
Queensland alliance with South Carolina<br />
Queensland Premier, Peter Beattie, was in South Carolina<br />
on 11 May to witness the signing <strong>of</strong> a Memorandum <strong>of</strong><br />
Understanding between the University <strong>of</strong> Queensland and<br />
the University <strong>of</strong> South Carolina in hydrogen and fuel cells.<br />
As well as providing a framework for collaborative research<br />
between Queensland and its sister state in the United States,<br />
the agreement will support the exchange <strong>of</strong> faculty and<br />
students working in hydrogen and fuel cell technology as<br />
well as the development <strong>of</strong> business interests in the two<br />
states. The first tangible outcomes <strong>of</strong> the agreement are<br />
that the University <strong>of</strong> Queensland has been chosen as the<br />
international partner in a proposal for a new engineering<br />
centre <strong>of</strong> excellence in the USA, and the South Carolina<br />
Hydrogen and Fuel Cell Alliance has agreed to be a sponsor<br />
<strong>of</strong> WHEC 2008, which will be held in Brisbane next year.<br />
Hydrogen plant in WA<br />
On 17 May, Rio Tinto and BP joined forces to form a<br />
joint venture, Hydrogen <strong>Energy</strong>, which will develop<br />
‘decarbonised’ energy projects around the world. The venture<br />
will initially focus on hydrogen-fuelled power generation,<br />
using fossil fuels and carbon capture and storage (CCS)<br />
technology to produce new large-scale supplies <strong>of</strong> clean<br />
electricity. Decarbonised energy projects are based on the<br />
conversion <strong>of</strong> fossil fuel feedstocks, such as coal, petroleum<br />
coke (a refinery by-product) and natural gas, to hydrogen<br />
and carbon dioxide gases, with the carbon dioxide being<br />
captured and sent for permanent sequestration in geological<br />
formations deep beneath the Earth’s surface. In power<br />
projects, the hydrogen would be used to fuel a gas turbine<br />
for generation <strong>of</strong> industrial-scale supplies <strong>of</strong> electrical power.<br />
Full integration with CCS technology would ensure that<br />
90% <strong>of</strong> the carbon dioxide which would otherwise have<br />
been emitted to the atmosphere would be safely captured<br />
and stored. On 21 May, Hydrogen <strong>Energy</strong> announced it<br />
would undertake feasibility studies and work on plans<br />
Hydrogen Matters<br />
for the potential development <strong>of</strong> an A$2 billion (US$1.5<br />
billion) coal-fired power generation project at Kwinana in<br />
Western Australia to be fully integrated with CCS. If it goes<br />
ahead, the project will gasify locally-produced coal from the<br />
Collie region to produce hydrogen and carbon dioxide. The<br />
hydrogen will be used in the first instance to fuel the power<br />
station generating 500 MW <strong>of</strong> electricity – enough to meet<br />
15% <strong>of</strong> demand in south-west Western Australia. Each year,<br />
four million tonnes <strong>of</strong> CO2 will be captured and permanently<br />
stored in deep underground saline aquifers. This project<br />
mirrors other projects on coal gasification and CCS in the<br />
United States, and could provide the coal industry with a<br />
transitional path to a future hydrogen economy.<br />
WHEC 2008<br />
This is a call for AIE members to help find more potential<br />
sponsors for the World Hydrogen <strong>Energy</strong> Conference (WHEC<br />
2008) being hosted by the <strong>Australian</strong> <strong>Institute</strong> <strong>of</strong> <strong>Energy</strong>. See<br />
the advertisement on the back cover. Also, there are quite a<br />
few international hydrogen and fuel cell conferences coming<br />
up (see Calendar on page 52). WHEC 2008 will be targetting<br />
potential delegates, exhibitors and sponsors at these events,<br />
So, if any AIE members intend to go to these conferences or<br />
other hydrogen or fuel cell events and are happy to be AIE<br />
ambassadors for WHEC 2008, please contact conference<br />
organisers at whec2008@icms.com.au.<br />
38 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
The Methane to Markets Partnership<br />
By Saravan Peacock,<br />
Assistant Director, Bilateral Climate Change Partnerships, <strong>Australian</strong> Greenhouse Office<br />
In October <strong>2007</strong> the international Methane to Markets<br />
Partnership (M2M) will take its collective expertise to<br />
Beijing to showcase opportunities to generate energy (and<br />
pr<strong>of</strong>its) from methane. The Beijing Expo will bring together<br />
project developers and financiers, technology manufacturers<br />
and vendors, and government policy-makers to exchange<br />
ideas and showcase new projects. A range <strong>of</strong> <strong>Australian</strong><br />
companies and researchers are already planning to attend<br />
the expo to see the latest technologies, explore new business<br />
opportunities and exchange ideas and experience with<br />
practitioners in key markets like China, the United States,<br />
India and Europe.<br />
Methane is a valuable energy resource that is <strong>of</strong>ten wasted<br />
by companies and governments across many sectors <strong>of</strong> the<br />
economy. It is also a major contributor to global greenhouse<br />
gas (GHG) emissions, being 23 times more effective than<br />
carbon dioxide at trapping heat in the atmosphere. As energy<br />
costs increase and governments look to reduce greenhouse<br />
gas emissions there are huge commercial opportunities to<br />
convert wasted methane to energy through already proven,<br />
cost-effective technologies.<br />
Since the industrial revolution, methane concentrations in<br />
the atmosphere have more than doubled, largely because <strong>of</strong><br />
human activity. Methane now accounts for 16% <strong>of</strong> all GHG<br />
emissions globally, with about 60% <strong>of</strong> total methane emissions<br />
coming from anthropogenic (human-related) sources.<br />
As well as reducing emissions and promoting pr<strong>of</strong>its,<br />
projects that capture and use methane can also facilitate<br />
broader economic development, strengthen energy security<br />
and improve local living conditions such as air quality and<br />
industrial safety. For example, capturing methane from<br />
underground coal mines improves safety conditions by<br />
reducing explosion hazards.<br />
INTERNATIONAL COOPERATION<br />
M2M was formed in 2004 to capture these benefits by<br />
promoting methane’s cost-effective capture and use as a<br />
clean energy source in the near term. M2M targets four<br />
major methane sources: animal waste management, coal<br />
mines, landfills, and natural gas and oil systems. National<br />
governments, private sector entities, development banks,<br />
non-governmental organizations, financial and technical<br />
experts, and other interested parties work together to<br />
develop methane capture and use projects internationally.<br />
There are currently 20 member countries and more than 500<br />
companies, pr<strong>of</strong>essionals and organisations involved in the<br />
partnership. M2M achieves its goals by facilitating public<br />
Articles<br />
and private sector investment in projects that capture and use<br />
methane. Partners work together to both identify barriers to<br />
the development <strong>of</strong> projects and support activities to help<br />
overcome these barriers. These activities include capacitybuilding<br />
workshops and other training events, technology<br />
transfer, feasibility studies, and technical assistance. Partners<br />
also work together to identify and assess potential project<br />
sites and to clarify regulatory and legal issues.<br />
The Methane to Markets Partnership Expo in Beijing<br />
from 30 October to 1 November <strong>2007</strong> is the premier<br />
international forum for promoting project opportunities<br />
and technologies that capture and use methane. The expo’s<br />
technical programme will include four sector-specific tracks,<br />
along with presentations, training, and other sessions. The<br />
expo will be hosted by China’s National Development and<br />
Reform Commission and the United States’ Environmental<br />
Protection Agency along with China’s major industry<br />
departments and three major Chinese state-owned oil and gas<br />
companies. Among the major sponsors for the event is the<br />
Asian Development Bank, which has extensive experience<br />
with clean energy projects. The <strong>Australian</strong> Government will<br />
have a stand to promote <strong>Australian</strong> companies and expertise,<br />
and to highlight the work Australia is doing to promote the<br />
worldwide capture and use <strong>of</strong> methane.<br />
Figure 1: Australia’s sector contributions to methane emissions, 2005<br />
Action in each <strong>of</strong> the partnership’s four key target sectors<br />
– coal mine methane, landfill gas, oil and gas, and the<br />
agriculture sector – is coordinated by a subcommittee with<br />
its own action plan focussed on sector-specific issues.<br />
39 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
COAL MINES<br />
The M2M Coal Mines Subcommittee has a particular focus<br />
on promoting the cost-effective capture and utilisation<br />
<strong>of</strong> methane produced from coal mines. Methane must be<br />
removed from underground mines for safety reasons, either<br />
in advance <strong>of</strong> mining, during mining activities, or after<br />
mining has occurred. Traditionally, coal mine methane<br />
(CMM) has been flared or simply vented to the atmosphere<br />
despite being an efficient and relatively clean-burning energy<br />
source. In Australia, methane produced from underground<br />
coal mines has been estimated by the <strong>Australian</strong> Greenhouse<br />
Office to constitute 3.1% <strong>of</strong> Australia’s net GHG emissions.<br />
Globally, coal mines account for approximately 8% <strong>of</strong> all<br />
methane emissions. The effective capture and utilisation <strong>of</strong><br />
CMM <strong>of</strong>fers significant environmental as well as economic<br />
benefits. There are a number <strong>of</strong> significant projects underway<br />
in Australia. In March this year, Anglo Coal and <strong>Energy</strong><br />
Developments Limited announced the opening <strong>of</strong> the 32 MW<br />
German Greek CMM power station which will be fuelled by<br />
waste mine gas from the Grasstree Coal Mine. The project<br />
has received a A$15 million grant as part <strong>of</strong> the <strong>Australian</strong><br />
Government’s Greenhouse Gas Abatement Programme and<br />
will deliver an annual reduction in GHG emissions <strong>of</strong> up<br />
to 1.1 million tonnes per year. In its <strong>2007</strong>/08 budget, the<br />
<strong>Australian</strong> Government also invested A$18.5 million over<br />
five years, to reduce GHG emissions from underground coal<br />
mining activities.<br />
Australia is also a world-leader in innovative uses for<br />
CMM, including ventilation air methane (VAM) which <strong>of</strong>ten<br />
has a concentration <strong>of</strong> less than 1% methane. CSIRO has<br />
developed a technology called VAMCAT (Ventilation Air<br />
Methane Catalytic Turbine) to safely extract methane from<br />
ventilation air and capture it for electricity generation.<br />
Figure 2: Methane released through coal mine fan exhaust ports like<br />
this one in Central Queensland are the target <strong>of</strong> the new VAMCAT<br />
technology (Photo courtesy <strong>of</strong> CSIRO)<br />
The new technology is being demonstrated through the<br />
testing <strong>of</strong> a 10-30 KW prototype unit at a mine site in China.<br />
In China, more than 70% <strong>of</strong> coal mine drainage gas has a<br />
Figure 3: Design <strong>of</strong> the ~30 KWe VAMCAT demonstration unit<br />
(Photo courtesy <strong>of</strong> CSIRO)<br />
methane concentration <strong>of</strong> less than 30% – too low for use<br />
by conventional technologies. VAMCAT can use this level<br />
<strong>of</strong> methane either as a primary fuel or as a supplementary<br />
fuel when it needs additional methane to operate on the very<br />
low concentration ventilation air.<br />
The M2M Coal Mines Subcommittee is working closely with<br />
industry and governments across the partnership to promote<br />
opportunities for the capture and use <strong>of</strong> CMM. The expo<br />
will showcase the significant potential for CMM projects in<br />
partner countries such as China, India and Russia.<br />
LANDFILL GAS<br />
The M2M Landfill Subcommittee is focussed on lowering<br />
the main barriers to developing more landfill gas (LFG)<br />
projects. These are lack <strong>of</strong> information about existing and<br />
planned landfills in each member country, lack <strong>of</strong> experience<br />
<strong>of</strong> LFG projects in many member countries, and lack <strong>of</strong><br />
awareness among local authorities <strong>of</strong> the opportunities<br />
to develop LFG projects. The <strong>Australian</strong> LFG market is<br />
very mature with most major opportunities already being<br />
exploited. Consequently, a number <strong>of</strong> <strong>Australian</strong> companies<br />
are interested in opportunities abroad, and the Beijing Expo<br />
will be a useful opportunity to meet potential partners and<br />
learn from the experience <strong>of</strong> developers who are already<br />
working in these overseas markets.<br />
The expo’s landfill programme will highlight lessons learned<br />
in developing projects for the capture and use <strong>of</strong> landfill<br />
methane. These include interpreting and using LFG models,<br />
the relationship between landfill operations and gas capture<br />
systems, and project financing and contracts. There will also<br />
be panel discussions highlighting case studies and innovative<br />
uses, such as vehicle fuel technologies, small-quantity LFG<br />
projects, and LFG projects in China and other economiesin-transition.<br />
AGRICULTURE<br />
Methane from animal waste represents 12% <strong>of</strong> Australia’s<br />
national greenhouse gas emissions. Innovation in the<br />
agriculture sector can reduce these emissions significantly,<br />
while implementing methane reduction programs can<br />
also provide secondary income streams for farmers. The<br />
40 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
M2M provides a useful opportunity to learn about leading<br />
developments in this new field. As part <strong>of</strong> its involvement in<br />
the partnership, the <strong>Australian</strong> Government is working with<br />
the intensive livestock industries and the Rural Industries<br />
Research and Development Corporation, to develop and<br />
adapt technologies that capture and use methane. The<br />
expo’s agriculture program will focus on the global status <strong>of</strong><br />
anaerobic digestion <strong>of</strong> livestock waste. Topics may include<br />
the economics <strong>of</strong> anaerobic digestion as a pollution control<br />
alternative, pr<strong>of</strong>iles <strong>of</strong> existing projects, examples <strong>of</strong> national<br />
programs that develop sustainable markets and mechanisms<br />
for deploying anaerobic digestion technologies, examples <strong>of</strong><br />
emerging waste management and pollution control programs,<br />
rural household/small-scale digesters and gas uses, unheated<br />
covered lagoons for milder climates, and digesters using<br />
co-mingled waste and centralized operation.<br />
OIL AND GAS SYSTEMS<br />
The expo will cover all aspects <strong>of</strong> worldwide reductions<br />
in methane emissions from oil and gas systems, especially<br />
those located in China. There will also be a technical program<br />
focused on policy and regulatory issues such as carbon<br />
markets, and low methane emissions pipeline maintenance<br />
and repair technologies.<br />
FURTHER INFORMATION<br />
For more information about the Methane to Markets<br />
Partnership and the Beijing Expo, please visit http://www.<br />
methanetomarkets.org/<br />
You can join the partnership’s voluntary and free project<br />
network online at http://www.methanetomarkets.org/<br />
partners/network/index.htm<br />
The <strong>Australian</strong> Government is coordinating <strong>Australian</strong><br />
involvement in the expo and providing information and<br />
advice to <strong>Australian</strong> companies and researchers who are<br />
attending. For more information about the <strong>Australian</strong><br />
Government’s involvement, please contact Saravan Peacock<br />
at saravan.peacock@environment.gov.au/<br />
Science writers focus on energy<br />
By Joy Claridge, Editor, AIE<br />
<strong>Energy</strong> was a key topic at the 5th World Conference <strong>of</strong> Science<br />
Journalists held in Melbourne on 16–20 April <strong>2007</strong>. The<br />
plenary on the third day – Reporting Climate Change – featured<br />
Kevin Hennessy (CSIRO Climate Impacts and Risk Group),<br />
Ge<strong>of</strong>f Love (Bureau <strong>of</strong> Meteorology) and Ian Lowe (<strong>Australian</strong><br />
Conservation Foundation). Their ‘consensus’ message was that<br />
there is a scientific consensus about climate change and this<br />
is reflected in the recent Intergovernmental Panel on Climate<br />
Change (IPCC) technical report which was agreed to by 300<br />
delegates from 200 countries. Although scepticism is how<br />
science works, the panellists advised journalists to be critical<br />
in their selection <strong>of</strong> alternate views on climate change. Science<br />
sources should be reputable and expert, and that means peerreviewed<br />
in prestigious journals.<br />
Although there was little room for sceptics at the plenary<br />
session, debate was lively later that day in the parallel<br />
session – Coal: fuel <strong>of</strong> the future? Chaired by ABC Science’s<br />
Bernie Hobbs, this session featured Peter Cook (CRC for<br />
Greenhouse Gas Technologies), Doug Holden (<strong>Australian</strong><br />
Coal Association), Ian Lowe (<strong>Australian</strong> Conservation<br />
Foundation) and Wang Yu (China Daily). For those<br />
familiar with the debate, there were no real surprises in the<br />
presentations, however it was interesting to hear the debate<br />
in a forum for journalists.<br />
Bernie Hobbs opened the session with the question, “Is coal<br />
on the way out?”<br />
“If you look at the recent efforts by UK and EU governments<br />
you might think so,” said Ms Hobbs.<br />
“Yet coal sustains many economies including that <strong>of</strong> Australia<br />
– the world’s biggest coal exporter with 30% <strong>of</strong> the traded<br />
coal market. Australia’s coal mines employ about 30,000<br />
people and, in 2005–06, Australia earned $25 billion from<br />
coal exports making it the single biggest commodity export<br />
by value. Our industries enjoy the competitive advantage <strong>of</strong><br />
cheap energy, but, one-third <strong>of</strong> all emissions <strong>of</strong> CO2 from<br />
human activity come from burning fossil fuels to generate<br />
electricity. So, is there a future for coal?”<br />
Doug Holden opened the presentations, noting that<br />
1.5 million people do not yet have access to electricity.<br />
The world is consuming 6 billion tonnes <strong>of</strong> coal this year,<br />
and will consume 10.5 billion tonnes by 2030. Australia<br />
is responsible for only 6% <strong>of</strong> production and 2% <strong>of</strong><br />
consumption. Coal has a future, but it will have to be used<br />
more efficiently and produce fewer emissions through new<br />
clean coal technologies.<br />
Peter Cook added that there needs to be a portfolio <strong>of</strong><br />
responses to climate change, including carbon capture and<br />
storage (CCS) as long as we use fossil fuels.<br />
“We have enough CO 2 storage space but it is not always<br />
where we would like it,” he said.<br />
“Australia is well-positioned to implement CCS in terms <strong>of</strong><br />
expertise and storage opportunities. Our first CCS project is<br />
underway in Victoria and will start injecting CO 2 to a depth<br />
<strong>of</strong> two kilometres in September this year.”<br />
Although Australia is a major exporter <strong>of</strong> coal, the vast<br />
majority <strong>of</strong> coal is produced and consumed in other countries.<br />
For example, China produces and consumes about one-third<br />
<strong>of</strong> the world’s coal and, in 2006, China started to import coal<br />
for the first time in 10,000 years.<br />
41 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
According to Wang Yu, this was the result <strong>of</strong> changes to<br />
trade barriers, local mine depletion, safety issues and high<br />
internal transport costs.<br />
“China will be an important driver <strong>of</strong> the future price <strong>of</strong><br />
coal,” he said.<br />
Although the Chinese Government has plans to reduce its<br />
reliance on coal for electricity generation and increase the<br />
use <strong>of</strong> gas and renewables, this shift will take many years<br />
and will significantly reduce the world’s overall consumption<br />
<strong>of</strong> coal.<br />
Ian Lowe pointed out that the historic costs <strong>of</strong> coal – smog,<br />
acid rain and particulate emissions – are largely cleaned up,<br />
at least in OECD countries. Today, the cost <strong>of</strong> using coal is<br />
CO2 emissions.<br />
“Climate change is real and serious and a driver <strong>of</strong> other<br />
environmental problems such as loss <strong>of</strong> biodiversity,” he<br />
said.<br />
“The main cause is burning fossil fuels especially coal. It is<br />
clear we cannot sustain our present pattern <strong>of</strong> energy use, let<br />
alone extend it. The rational response is to shift to cleaner<br />
energy sources such as gas and renewables, and to improve<br />
efficiency.”<br />
Pr<strong>of</strong> Lowe argued that CCS has unresolved questions.<br />
“How much will it cost? How reliable will it be? How much<br />
useful energy would it absorb?”, he asked.<br />
“It seems odd to me to release CO 2, then try and catch it to<br />
send it back. Might it not be better to leave it there in the<br />
first place?”<br />
The presentations provoked many questions from the<br />
audience, four <strong>of</strong> which are reported here.<br />
Q. Who should pay for emissions?<br />
DOUG HOLDEN: The UN decided that consumers are<br />
responsible and should pay at consumption. We all consume<br />
electricity, so we should all pay. However we, as producers,<br />
also have a responsibility to help other countries to reduce<br />
greenhouse gas emissions. We are funding clean coal<br />
technology projects here and overseas.<br />
Q. How do we make sure other countries use CCS?<br />
PETER COOK: We can’t make sure they do, but we can<br />
work on international protocols and share costs. China,<br />
for example, will not take up CCS immediately because<br />
it increases costs and they cannot afford it. But, China is<br />
working on the technology. We need an international accord<br />
and targets we all share.<br />
Q. Won’t the CO2 leak in the Otways?<br />
PETER COOK: It will not leak because is compressed at<br />
depth and sealed in porous rocks which are capped. Natural<br />
accumulations have been in the ground for millions <strong>of</strong> years,<br />
and we are just emulating nature.<br />
Q. But the rate <strong>of</strong> injection cannot keep up with demand,<br />
so is CCS only a short-term solution?<br />
PETER COOK: CCS is a transitional technology to 100%<br />
renewables, but we are a long way from reaching our<br />
capacity in the Gippsland Basin. The IPCC estimates there<br />
is enough global storage to 2100. Australia is one <strong>of</strong> the first<br />
countries to assess its storage resource and there is enough<br />
here for 1,000 years, but some <strong>of</strong> this capacity is a long way<br />
from the source <strong>of</strong> CO2 emissions.<br />
Q. If we use less coal, what do we do about the impact on<br />
jobs and the economy?<br />
IAN LOWE: The coal industry employs only one-third <strong>of</strong> the<br />
jobs we have lost in manufacturing. Efficiency and cleaner<br />
energy are more labour-intensive, so more jobs are added<br />
than lost. From an economy-wide perspective it makes sense<br />
to shift to renewables.<br />
When, at the end <strong>of</strong> the session, Bernie Hobbs asked, “Would<br />
you put your superannuation in coal?”, all except Ian Lowe<br />
said “Yes”.<br />
If you want to see what else was discussed at the conference,<br />
you can access the blog from the conference web at www.<br />
scienceinmelbourne<strong>2007</strong>.org.<br />
Australia’s new nuclear reactor<br />
By Leslie Kemeny*<br />
On 19 and 20 April <strong>2007</strong>, the <strong>Australian</strong> Nuclear Science<br />
and Technology Organisation (ANSTO) celebrated the recent<br />
commissioning <strong>of</strong> its new, world-class, OPAL (Open Pool<br />
<strong>Australian</strong> Lightwater) research reactor at the Lucas Heights.<br />
On the 19th, scientists, business leaders and academics were<br />
introduced to the reactor and its technical capacity for the<br />
manufacture <strong>of</strong> radiopharmaceuticals, its material science<br />
applications, its environmental services and its neutron<br />
scattering facilities for business applications. The formal<br />
OPAL opening function took place that evening and, on the<br />
20th, Prime Minister John Howard visited ANSTO to be<br />
briefed about OPAL and to be shown the work being carried<br />
out at Lucas Heights.<br />
The OPAL research reactor is <strong>of</strong> an open pool type, costing<br />
around $350 million. It operates at 20 megawatts. This is<br />
twice the thermal energy <strong>of</strong> the first ANSTO reactor, HIFAR<br />
(High Flux <strong>Australian</strong> Reactor), which was commissioned<br />
at Lucas Heights in 1958 by the predecessor <strong>of</strong> ANSTO,<br />
the <strong>Australian</strong> Atomic <strong>Energy</strong> Commission (AAEC). OPAL<br />
42 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
has a light water coolant and moderator and a heavy water<br />
reflector. It utilises plate type fuel elements and provides high<br />
and low energy neutron sources for research purposes. As<br />
well, it has more than 50 facilities for radioisotope production<br />
and seven facilities for silicon doping.<br />
When the AAEC was established under the Atomic <strong>Energy</strong><br />
Act No.31 in 1953 it was assigned three main areas <strong>of</strong><br />
responsibility: uranium exploration, mining and processing;<br />
design, construction and operation <strong>of</strong> nuclear power plant;<br />
and research, training and publication <strong>of</strong> scientific reports.<br />
It should be noted that in 1953 the AAEC was assigned<br />
responsibilities which essentially embraced nuclear power<br />
generation and the whole uranium fuel cycle.<br />
The HIFAR reactor had first attained criticality on Australia<br />
Day, 1958. The possibility <strong>of</strong> harnessing nuclear power<br />
for Australia’s energy needs was the vision <strong>of</strong> Sir Philip<br />
Baxter, first Vice-Chancellor <strong>of</strong> the University <strong>of</strong> New South<br />
Wales and also the first chairman <strong>of</strong> the AAEC. As early as<br />
1954 he had established an <strong>Institute</strong> for Nuclear Science<br />
and Engineering at the university. Subsequently, in 1962,<br />
this became Australia’s first, and only, School <strong>of</strong> Nuclear<br />
Engineering <strong>of</strong>fering both undergraduate and postgraduate<br />
training to hundreds to <strong>Australian</strong> and overseas students. It<br />
made full use <strong>of</strong> appropriate facilities at the AAEC research<br />
laboratories and used the HIFAR reactor extensively over<br />
24 years to develop innovative nuclear power plant safety,<br />
surveillance and control strategies. The school was closed in<br />
1988 under considerable funding and political pressures. In<br />
the same year, the mandate for nuclear power development<br />
was withdrawn from the AAEC and the organisation was<br />
renamed and re-badged as ANSTO.<br />
For the rapidly growing number <strong>of</strong> young <strong>Australian</strong>s<br />
interested in nuclear science and technology in <strong>2007</strong>, it is<br />
a matter <strong>of</strong> great encouragement that ANSTO will shortly<br />
be providing fifteen places each year for areas <strong>of</strong> specialist<br />
training for postgraduate students. For some <strong>of</strong> these<br />
areas, OPAL could well become a platform for the design,<br />
construction and operation <strong>of</strong> Australia’s first nuclear power<br />
station.<br />
* Leslie Kemeny FAIE is the <strong>Australian</strong> Foundation Member<br />
<strong>of</strong> the International Nuclear <strong>Energy</strong> Academy and visiting<br />
pr<strong>of</strong>essor with the University <strong>of</strong> New South Wales School <strong>of</strong><br />
Nuclear Engineering where he supervised the research work<br />
at Lucas Heights from 1964 to 1988.<br />
Budget <strong>2007</strong>: Additional funding<br />
for climate change initiatives<br />
By Tony Hill, Partner, Sydney, and Lisa Moore, Senior Associate, Melbourne, Blake Dawson Waldron*<br />
In brief:<br />
• The <strong>2007</strong>/08 Budget includes a range <strong>of</strong> measures to address<br />
climate change, at a cost <strong>of</strong> $741 million over 5 years.<br />
• The Budget focuses on funding initiatives to support<br />
action by governments, industry and households to reduce<br />
greenhouse gas emissions.<br />
• It does not include any new measures likely to significantly<br />
change the regulatory landscape, such as the introduction<br />
<strong>of</strong> an emissions trading scheme.<br />
• The Federal Government will wait until after it receives<br />
a report from a joint government-industry task group at<br />
the end <strong>of</strong> the month, before announcing its policy on<br />
emissions trading.<br />
• However, the Prime Minister has recently given his<br />
clearest signal yet that he is likely to support such a scheme<br />
as the centrepiece <strong>of</strong> a long-term strategy for dealing with<br />
climate change.<br />
Federal Budget <strong>2007</strong>–08<br />
Describing global warming as a ‘serious long term threat’,<br />
Treasurer Peter Costello announced that the Federal Budget<br />
for <strong>2007</strong>–08 will provide $741 million over five years<br />
to reduce greenhouse gas (GHG) emissions and prepare<br />
Australia for the impacts <strong>of</strong> climate change.<br />
Key climate change measures<br />
Key funding initiatives in the Budget include:<br />
• $170 million for climate change adaptation measures;<br />
• $197.2 million towards the Global Initiative on Forests<br />
and Climate to help reduce global emissions from<br />
deforestation;<br />
• $150 million for the federal solar rebate programme;<br />
• $59.6 million to accelerate the production <strong>of</strong> greenhouse<br />
friendly transport fuels;<br />
• $18.5 million to reduce methane emissions from<br />
underground coal mine activities;<br />
• $18.2 million to support <strong>of</strong>fshore carbon capture and<br />
storage;<br />
• $23.6 million for tax deductions for carbon sink forestry<br />
projects;<br />
• $52.8 million to encourage greenhouse action by individual<br />
households and small businesses; and<br />
• $7.9 million to phase out inefficient light bulbs.<br />
We have outlined some <strong>of</strong> these measures below.<br />
Climate change adaptation measures<br />
The Budget includes a $170 million package to help Australia<br />
adapt to the effects <strong>of</strong> climate change. This includes:<br />
43 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
• $26 million for the establishment <strong>of</strong> a new think tank, the<br />
<strong>Australian</strong> Centre for Climate Change Adaptation, and<br />
$100 million in programme funding for the Centre. The<br />
Centre aims to bring together a wide range <strong>of</strong> economic<br />
and scientific expertise on climate change, across all key<br />
research agencies, so as to provide information to decision<br />
makers to help manage climate change impacts.<br />
• $44 million for an Adaptation Flagship to be established<br />
in the CSIRO, in collaboration with the Bureau <strong>of</strong><br />
Meteorology. The Flagship is intended to complement<br />
the new <strong>Australian</strong> Centre for Climate Change Adaptation<br />
measure by providing the underlying science required to<br />
improve climate projections.<br />
Global Initiative on Forests and Climate<br />
The Federal Government will provide $197.2 million<br />
towards its Global Initiative on Forests and Climate.<br />
Launched in March this year, the initiative aims to work with<br />
other countries to protect the world’s forests by supporting<br />
new forest planting, preventing deforestation, and promoting<br />
sustainable forest management.<br />
Support for solar energy<br />
The Budget will provide an additional $150 million under the<br />
federal Photovoltaic Rebate Programme (PVRP) to support:<br />
• a doubling <strong>of</strong> the rebate for solar panels on homes, up to<br />
a maximum <strong>of</strong> $8,000;<br />
• a new competitive grants scheme for schools and<br />
communities to install solar panels; and<br />
• a targeted scheme to support the design and installation<br />
<strong>of</strong> solar systems on commercial, industrial and iconic<br />
buildings.<br />
The Federal Government expects this funding to more than<br />
double the number <strong>of</strong> solar powered systems installed in<br />
Australia over the next five years and to stimulate further<br />
growth in the solar industry.<br />
Coal mine methane reduction programme<br />
The Federal Government will invest $18.5 million over 5 years,<br />
partly funded from the existing Greenhouse Gas Abatement<br />
programme, to reduce methane emissions from underground<br />
mines, found mainly in New South Wales and Queensland.<br />
The coal mine methane reduction programme will provide<br />
competitive grants to industry to reduce methane emissions<br />
from underground coal mines in the Kyoto target period 2008<br />
to 2012. The programme is expected to reduce emissions by<br />
up to 0.9 million tonnes per year; 4.5 million tonnes over<br />
the 2008 to 2012 period.<br />
CCS legislative regime<br />
The Budget provides $18.2 million over four years for<br />
the Department <strong>of</strong> Industry, Tourism and Resources and<br />
Geoscience Australia to develop and implement laws and<br />
regulations for carbon capture and storage (CCS). The new<br />
legislative regime will:<br />
• provide industry with access and property rights in<br />
Commonwealth waters to allow for carbon dioxide to be<br />
stored in <strong>of</strong>fshore geological structures;<br />
• provide for the release <strong>of</strong> areas for exploration; and<br />
• regulate CCS activities.<br />
Tax deductions for carbon sink projects<br />
The Budget provides $23.6 million over four years for new<br />
tax arrangements applying to the costs <strong>of</strong> establishing forests<br />
for the dedicated purpose <strong>of</strong> reducing GHG emissions. Carbon<br />
sink forest operators will be allowed to depreciate the costs<br />
<strong>of</strong> establishing a qualifying carbon sink forest under the<br />
horticultural plant provisions, with effect from 1 July <strong>2007</strong>.<br />
In addition, the Government will introduce immediate<br />
deductibility for costs incurred in establishing a qualifying<br />
carbon sink forest during a 5 year period commencing 1 July<br />
<strong>2007</strong>. The immediate deduction will take precedence over the<br />
general horticultural provisions during this period. To be eligible<br />
for carbon sink forest tax concessions, businesses will need to<br />
participate in the Government’s Greenhouse Challenge Plus<br />
programme. Carbon sink forest projects must also demonstrate<br />
that they comply with environmental and natural resource<br />
management guidelines for their geographic location.<br />
Responses from the Opposition and green groups<br />
Labor and green groups have criticised the Budget’s climate<br />
change measures, claiming they are neither substantial nor<br />
new. They criticise the limited support for renewable energy,<br />
the lack <strong>of</strong> long-term targets for emissions reductions, and<br />
the absence <strong>of</strong> any announcement about the introduction<br />
<strong>of</strong> an emissions trading scheme. Opposition environment<br />
spokesman Peter Garrett said. “The budget will not stop<br />
Australia’s greenhouse pollution from soaring by 27% by<br />
2020, and clearly shows the government lacks the political<br />
will to try and prevent dangerous climate change.”<br />
<strong>Australian</strong> Greens climate change spokesperson, Senator<br />
Christine Milne, said Treasurer Costello’s 12th budget<br />
demonstrated that he is “negligent and reckless” when it<br />
comes to climate change. The <strong>Australian</strong> Conservation<br />
Foundation (ACF) acknowledged that the Budget contained<br />
some useful funding for environmental initiatives, but<br />
argued it does not match the scale <strong>of</strong> the action required to<br />
tackle climate change. ACF’s executive director Don Henry<br />
commented that, “Avoiding dangerous climate change is<br />
going to take more than modest funding for isolated programs<br />
– it requires leadership and far-sighted structural changes.”<br />
Prime Minister supports emissions trading<br />
In response to criticism over the Budget’s perceived lack <strong>of</strong><br />
climate change measures, Prime Minister John Howard said<br />
he was awaiting a report from the Task Group on Emissions<br />
Trading at the end <strong>of</strong> this month.<br />
“Everybody agrees that you have to have some price on<br />
carbon to effectively deal with the emissions problem,” he<br />
told the Seven Network.<br />
“And the best way <strong>of</strong> delivering a price on carbon is through<br />
a market mechanism, namely an emissions trading system.<br />
That ... is the centrepiece <strong>of</strong> any long-term strategy and I’ll<br />
be saying quite a bit about this whole issue a few weeks<br />
after we’ve received the report.” [“Howard backs emissions<br />
trading scheme”, The Age, 9 May <strong>2007</strong>]<br />
Reprinted from Blake Dawson Waldron’s Greenhouse<br />
Update, 17 May <strong>2007</strong>.<br />
44 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
The Darwin Declaration<br />
After two days <strong>of</strong> meetings, the eighth APEC <strong>Energy</strong> Ministers’<br />
Meeting in Darwin concluded on 30 May <strong>2007</strong> with the release<br />
<strong>of</strong> the ‘Darwin Declaration’, recognising the need to deploy<br />
cleaner, more efficient and sustainable energy technologies.<br />
“This is a landmark achievement for the APEC member<br />
economies, said Industry Minister and Chair <strong>of</strong> the meeting,<br />
Ian Macfarlane.<br />
“<strong>Energy</strong> Ministers from across the 21 economies have agreed<br />
to a number <strong>of</strong> ways forward to achieve energy security and<br />
sustainable development.<br />
A summary <strong>of</strong> the agreed instructions to APEC member<br />
countries follows.<br />
ACHIEVING OIL SECURITY<br />
APEC oil import dependency is forecast to rise from 36%<br />
in 2002 to 52% in 2030. Recent high oil prices have been<br />
driven by supply-demand fundamentals, geopolitical risks<br />
and concerns about supply interruption and speculative<br />
trading. In response we encourage APEC economies to adopt<br />
a broad range <strong>of</strong> measures designed to enhance security <strong>of</strong><br />
supply and promote fuel efficient transport and the uptake<br />
<strong>of</strong> viable alternative fuels.<br />
(a) Facilitating investment and trade in downstream<br />
and upstream oil markets<br />
To ensure sufficient investment in refining capacity to meet<br />
growing demand, including for cleaner fuels, we encourage<br />
APEC economies to:<br />
• provide a transparent and streamlined regulatory<br />
framework for such investment;<br />
• facilitate freer trade <strong>of</strong> oil products; and<br />
• create a positive environment for technology development<br />
to help refiners to produce cleaner oil products more<br />
efficiently.<br />
Transparent, credible, equitable, and effective legal and<br />
regulatory frameworks, including the ability to enforce<br />
contracts, are essential to generate sufficient and sustainable<br />
international upstream investment.<br />
• We support ongoing dialogue between consumers and<br />
producers to facilitate an enabling investment climate in<br />
oil and natural gas resources and reserves.<br />
• We recognise the importance <strong>of</strong> facilitating upstream<br />
investments.<br />
Observing the important role <strong>of</strong> oil and gas companies in<br />
APEC economies:<br />
• We encourage the <strong>Energy</strong> Working Group (EWG) to<br />
study the trade and investment practices <strong>of</strong> these oil and<br />
gas companies and to examine how partnerships and<br />
cooperation can improve the value chain.<br />
(b) Enhancing emergency preparedness<br />
Oil supply disruptions can affect all member economies.<br />
In response:<br />
• we encourage APEC economies to participate in the Real-<br />
Time Emergency Information Sharing System (RTEIS)<br />
and to develop and communicate emergency mechanisms<br />
and contingency plans, including through the APEC<br />
Taskforce for Emergency Preparedness and also through<br />
enhancing the RTEIS to facilitate the establishment <strong>of</strong><br />
an APEC Rapid Response Points <strong>of</strong> Contact Network<br />
for the Protection <strong>of</strong> Critical <strong>Energy</strong> Infrastructure to<br />
help minimise the potential for supply disruptions and to<br />
better protect critical energy infrastructure, including for<br />
maritime transportation;<br />
• we instruct the EWG to strengthen cooperation with other<br />
relevant international fora, such as the IEA, for coordinating<br />
efforts at the time <strong>of</strong> energy supply disruption;<br />
• we recognise the implications <strong>of</strong> disruptions and limitations<br />
to maritime energy transport and we instruct the EWG to<br />
develop linkages with organisations responsible for regional<br />
maritime security with a view to identifying and reporting<br />
any cross-cutting issues to our next meeting; and<br />
• we encourage interested economies to continue to report<br />
on implementing best practices for the establishment,<br />
financing and management <strong>of</strong> strategic oil stocks.<br />
(c) Improving oil data sharing<br />
A lack <strong>of</strong> transparent and reliable oil market data aggravates<br />
price volatility.<br />
• We reaffirm our support for the Joint Oil Data Initiative<br />
(JODI) as an international initiative that addresses investor<br />
uncertainty, contributes towards global harmonisation <strong>of</strong><br />
energy data, and strengthens producer and consumer<br />
dialogue by demonstrating concrete action.<br />
• We encourage APEC economies to report timely, accurate<br />
and complete data on oil reserves, supply and demand,<br />
stocks and production under the JODI. We direct the<br />
EWG to continue to provide training through JODI<br />
for economies to undertake this task and to contribute<br />
towards the JODI World Database.<br />
(d) Promoting energy efficient transport and<br />
alternative transport fuels<br />
Transportation is the leading sector for oil demand growth in<br />
the APEC region and high oil prices are driving cost-effective<br />
improvements in vehicle fuel efficiency and the development<br />
and uptake <strong>of</strong> alternative transport fuels.<br />
• We welcomed the report <strong>of</strong> the APEC Bi<strong>of</strong>uels Task Force.<br />
Among its key findings are that bi<strong>of</strong>uels from several crops<br />
are cost-competitive at current oil prices, that bi<strong>of</strong>uels<br />
can lower greenhouse gas emissions and that bi<strong>of</strong>uels<br />
can displace a sizeable share <strong>of</strong> oil use over time.<br />
• Bi<strong>of</strong>uels production should be advanced in line with<br />
sustainable development objectives. We encourage<br />
intensified efforts to develop and deploy techniques for<br />
the cost-effective use <strong>of</strong> non-food feedstocks, such as<br />
farm and forest residues and grasses, which hold the<br />
45 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
greatest potential for expanded bi<strong>of</strong>uels production and<br />
greenhouse gas reductions.<br />
• We encourage the EWG to collaborate on alternative fuels<br />
with other international bodies, such as the IEA and the<br />
Global Bioenergy Partnership (GBeP).<br />
• We encourage APEC economies to manage their growing<br />
dependence on oil for transportation through policies and<br />
measures to promote energy efficiency in transportation<br />
and to diversify the fuel mix using cleaner fuel sources.<br />
• We direct the EWG to develop best practice principles for<br />
energy efficient transport.<br />
PROMOTING CLEAN AND EFFICIENT ENERGY<br />
PRODUCTION AND USE<br />
Meeting growing energy needs with a lower environmental<br />
impact requires cooperation to improve energy efficiency,<br />
cleaner and more efficient energy technologies, attraction <strong>of</strong><br />
additional energy investment and facilitation <strong>of</strong> cross-border<br />
energy trade.<br />
(e) Improving energy efficiency<br />
Improving energy efficiency is a cost-effective way to enhance<br />
energy security and mitigate greenhouse gas emissions.<br />
There is great potential for energy efficiency improvements<br />
in the power generation, industrial, transportation, public,<br />
residential and commercial sectors.<br />
• We encourage APEC economies to individually set goals<br />
and formulate action plans for improving energy efficiency<br />
on an overall and/or sector basis.<br />
• We direct the EWG to collaborate with the IEA to develop<br />
energy efficiency indicators and compile best practices<br />
that can be used to help formulate and track progress<br />
towards such voluntary goals and action plans.<br />
• We direct the EWG to strengthen efforts to share<br />
information on energy efficiency policies and measures,<br />
identify effective energy efficiency approaches and review<br />
progress towards efficiency goals.<br />
• We encourage APEC economies to contribute to and utilise<br />
the APEC <strong>Energy</strong> Standards Information System (ESIS).<br />
(f) Developing and deploying cleaner and more<br />
efficient energy technologies<br />
New energy technologies can address energy security and provide<br />
environmental benefits by reducing greenhouse gases and other<br />
atmospheric pollutants. To accelerate their deployment:<br />
• we encourage the development <strong>of</strong> cleaner and more<br />
efficient power generation technologies, including<br />
renewables, clean coal, natural gas/LNG, and for<br />
interested economies, nuclear technologies;<br />
• we direct the EWG to progress the development <strong>of</strong> clean fossil<br />
energy technologies, including carbon capture and storage;<br />
• we encourage EWG collaboration with the Renewable<br />
<strong>Energy</strong> and <strong>Energy</strong> Efficiency Partnership (REEEP) on<br />
financing, policy and regulation;<br />
• we recognise the importance <strong>of</strong> progress in the uptake <strong>of</strong><br />
new and renewable energy through the APEC 21 st<br />
Century<br />
Renewable <strong>Energy</strong> Development Initiative;<br />
• we encourage interested APEC economies to join the<br />
EWG’s Ad-Hoc Group on Nuclear Technologies and<br />
to ensure that the safety, security, seismic, health and<br />
waste handling aspects, including trans-border effects, <strong>of</strong><br />
civilian nuclear energy are adequately addressed; and<br />
• we await EWG advice on the recommendations from the<br />
forthcoming meetings <strong>of</strong> regional nuclear safeguards<br />
experts.<br />
(g) Attracting energy investment and facilitating<br />
cross-border trade<br />
Meeting energy demand in the APEC region will require<br />
new investment <strong>of</strong> at least US$6 trillion to 2030. Significant<br />
economic benefits can be gained by removing barriers to<br />
such investment.<br />
• We encourage continued efforts by the <strong>Energy</strong> Efficiency<br />
and Renewable <strong>Energy</strong> Financing Task Force to help<br />
governments, businesses and financial institutions<br />
incorporate the value <strong>of</strong> energy savings in large-scale<br />
investment decisions.<br />
• We direct the EWG to review the uptake and currency <strong>of</strong> Best<br />
Practice Principles on: Accelerating Investment in Natural<br />
Gas Supplies, Infrastructure and Trading Networks in the<br />
APEC Region; Facilitating the Development <strong>of</strong> LNG Trade;<br />
Financing <strong>Energy</strong> Projects; and Natural Gas Trade.<br />
• We direct the EWG to contribute to the proposed APEC<br />
<strong>Energy</strong> Trade & Investment Study and Roundtable.<br />
• We encourage APEC economies to address the<br />
recommendations <strong>of</strong> the APEC Gas Forum.<br />
• We direct the EWG to continue implementation <strong>of</strong> its<br />
LNG Public Education and Communication Information<br />
Sharing Initiative.<br />
• We direct the EWG to continue cooperative efforts to<br />
improve natural gas data collection.<br />
(h) APEC <strong>Energy</strong> Peer Review Mechanism<br />
To assist interested economies in developing policies that<br />
support energy security and environmental objectives:<br />
• we direct the EWG to develop a voluntary <strong>Energy</strong> Peer<br />
Review Mechanism, with an initial focus on progress<br />
toward attaining energy efficiency goals.<br />
PROMOTING BROADER ENERGY COOPERATION<br />
Cooperation and partnership are essential to addressing<br />
energy security and environmental challenges that extend<br />
beyond the sphere <strong>of</strong> any single economy or the APEC<br />
economies as a group. In response:<br />
• we direct the EWG to further advance collaboration<br />
with other international energy fora, including the<br />
International <strong>Energy</strong> Agency;<br />
• we welcome the work <strong>of</strong> the Asia-Pacific Partnership on<br />
Clean Development and Climate (APP) and await advice<br />
from the EWG on potential areas <strong>of</strong> cooperation; and<br />
• we direct the EWG to continue to report sustainable<br />
development activities to the United Nations Commission<br />
on Sustainable Development.<br />
To get your copy <strong>of</strong> the Darwin Declaration, go to www.<br />
industry.gov.au/apec<strong>2007</strong>mediacentre/<br />
46 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
10 WAYS TO GET THE MOST FROM YOUR LEGAL TEAM<br />
By Mark Kemp*<br />
Very few energy companies whose involvement in major infrastructure<br />
projects requires large scale land or easement acquisitions use their<br />
lawyers to best effect. Typically, such companies call their lawyers<br />
in at the beginning <strong>of</strong> these projects to ensure compliance with<br />
regulatory and planning issues, and then at the tail end to deal with<br />
any unresolved disputes with a small number <strong>of</strong> recalcitrant land<br />
owners. Using your legal team through the acquisition/construction<br />
phase <strong>of</strong> a project can save you money, avoid disputes and ensure<br />
that project timeframes are met. It is here that a good legal team can<br />
really prove its worth and deliver value for money.<br />
1. INVOLVE THE LEGAL TEAM EARLY<br />
Don’t wait until discussions with land owners have already taken<br />
place. Involve your lawyers in those discussions and in any initial<br />
project team briefings so that they are familiar with and understand<br />
all <strong>of</strong> the issues surrounding the project. Involving your lawyers<br />
early is critical if there are likely to be issues which relate to<br />
particular owners or involve geographical features, endangered<br />
fauna and flora, or community sensitivities.<br />
2. INVOLVE THE LEGAL TEAM<br />
IN COMMUNITY BRIEFINGS<br />
It is pretty much standard procedure nowadays for companies to hold<br />
community briefings and presentations in the major regional centres<br />
and towns along a project’s proposed route. For some inexplicable<br />
reason, lawyers, valuers, surveyors, engineers and other expert<br />
service providers are rarely included in such activities. But, who<br />
else can satisfactorily answer the questions that will be asked? The<br />
attendance <strong>of</strong> these service providers will increase the transparency<br />
<strong>of</strong> the project and help to alleviate any community distrust.<br />
3. LET YOUR LEGAL TEAM PRESENT<br />
TO LOCAL LAWYERS<br />
Not only will a presentation enable your legal team to explain the<br />
project’s procedures, timeframes and lines <strong>of</strong> communication, but<br />
it will allow individual members to begin establishing their own<br />
comfortable relationships with the local lawyers who’ll be acting<br />
for various landowners. Meeting and greeting over a drink or some<br />
food is just as important as the company’s formal presentation and<br />
will break down the barriers between your legal team and the local<br />
lawyers with whom they might find themselves at loggerheads.<br />
4. ENSURE YOUR LEGAL TEAM ESTABLISHES<br />
STRONG PROFESSIONAL RELATIONSHIPS WITH<br />
THE LOCAL LAWYERS WHO WILL BE ACTING FOR<br />
THE LAND OWNERS<br />
Your legal team will be much better equipped to resolve potential<br />
disputes before they happen if they can have a friendly chat to an<br />
aggrieved landowner’s solicitor rather than having to rely solely<br />
on formal correspondence which is typically anything but friendly.<br />
When you’ve got a very tight construction timetable and an owner<br />
denies you access by locking the front gate, the chances are that<br />
a letter won’t bring about a speedy solution. Lawyer-to-lawyer<br />
relationships are essential when dealing with emotional owners<br />
who are facing compulsory acquisition.<br />
5. GET YOUR LEGAL TEAM OUT OF ITS OFFICE<br />
AND INTO THE FIELD<br />
Not only will getting out and about enable your lawyers to develop<br />
a better knowledge and understanding <strong>of</strong> the project but it will help<br />
them build relationships with property owners and the local lawyers<br />
who represent them. You and your lawyers will both benefit if they<br />
visit the project site every month or so to update themselves on<br />
progress and meet with local lawyers and landholders.<br />
6. ENSURE THAT YOUR LEGAL TEAM KNOWS AND<br />
BUILDS STRONG PROFESSIONAL RELATIONSHIPS<br />
WITH YOUR OTHER SERVICE PROVIDERS<br />
Many issues that arise during the land acquisition phase <strong>of</strong> a project<br />
require contributions from your lawyers, surveyors and valuers.<br />
If you require efficient resolution, it is crucial that these service<br />
providers develop good pr<strong>of</strong>essional and personal relationships<br />
so that they can work together. It is very difficult, for example, for<br />
lawyers to contribute to resolving compensation issue if they have no<br />
or only limited knowledge <strong>of</strong> the approach your valuer is taking.<br />
7. ENSURE THAT THE LEGAL TEAM PREPARE AS<br />
MANY DOCUMENTS AS POSSIBLE<br />
Most companies will already have easement terms and although<br />
lawyers rarely need to be involved when landowners sign standard<br />
easements, large-scale land acquisition and construction creates<br />
related issues which require specific legal documentation. It is<br />
essential that your lawyers are involved not only in the discussions<br />
with owners and their solicitors in relation to these types <strong>of</strong> issues<br />
but that any documentation involved is prepared by your legal team<br />
to ensure that it is correct.<br />
8. ENSURE THAT THE LEGAL TEAM IS AWARE OF<br />
THE POLITICAL ENVIRONMENT OF THE PROJECT<br />
Although this applies particularly to statutory corporations and<br />
government-owned utilities, it also applies to private sector<br />
organisations. The legal team needs to be briefed on and understand<br />
the political environment <strong>of</strong> your project. In particular, it needs to<br />
know about any owners’ actions groups which have been established,<br />
what local members <strong>of</strong> parliament are being told and what<br />
governments are saying, if anything, about the project. Providing<br />
technical legal advice about a project without understanding the<br />
political environment is <strong>of</strong> little value. This applies both to the formal<br />
legal advice provided to you as well as the formal and informal<br />
dealings your legal team has with owners and their local lawyers.<br />
Your lawyers need to understand that anything they write or say<br />
to an owner or the owner’s lawyer may end up in the hands <strong>of</strong> the<br />
relevant government minister with adverse implications for your<br />
organisation. ‘Ministerials’ are not only stressful and cause public<br />
relations problems. They also take a lot <strong>of</strong> time, effort and resources<br />
to answer, thereby diverting resources from the project itself.<br />
9. USE YOUR LEGAL TEAM AS ANOTHER SOURCE<br />
OF COMMUNICATION/INFORMATION<br />
In its meetings and field trips, your legal team may discover<br />
and be told things that your field representatives are not hearing<br />
about local issues. Because many local lawyers are involved in<br />
community associations and local government, they <strong>of</strong>ten know<br />
about potential problems and community concerns well before<br />
those issues become known to you.<br />
10. USE YOUR LEGAL TEAM AS PART<br />
OF YOUR PUBLIC RELATIONS EFFORT<br />
Do not keep the members <strong>of</strong> your legal team in reserve until a<br />
dispute erupts. Use them not just as advisors but also to manage<br />
legal issues throughout the life <strong>of</strong> your project. Furthermore, make<br />
it publicly known that you are doing so. This will make it clear to<br />
the local lawyers that your legal team is available and contactable<br />
and that you regard legal issues seriously. From a public relations<br />
viewpoint, there is considerable kudos in doing this.<br />
These 10 points about how to get the best from your legal team have<br />
been successfully used by energy companies in a variety <strong>of</strong> projects<br />
involving large-scale land and easement acquisitions. There’s<br />
nothing academic or theoretical about them. They actually work!<br />
*Mark Kemp is a Senior Associate with Melbourne law firm Mason<br />
Sier Turnbull. He can be contacted at mark.kemp@mst.com.au.<br />
47 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
The Inbox<br />
As editor for the <strong>Australian</strong> <strong>Institute</strong> <strong>of</strong> <strong>Energy</strong> I receive a variety <strong>of</strong> interesting material by email<br />
and post. Also, as we increasingly use the Internet as a source <strong>of</strong> information, just knowing what<br />
web pages to view can be very useful. Therefore, this new section <strong>of</strong> <strong>Energy</strong> News comprises short<br />
articles from these sources and a list <strong>of</strong> interesting web pages. By its nature such a collection is arbitrary<br />
but I have tried to cover areas not already covered elsewhere in the journal. Over time, all energy topics<br />
should get some coverage. If you have any ideas <strong>of</strong> have visited interesting web pages that would<br />
be <strong>of</strong> interest to fellow members <strong>of</strong> the AIE please send by email to editor@aie.org.au. In this issue,<br />
the focus is on oil and gas, energy efficiency, and people and places.<br />
OIL AND GAS<br />
… from the local impact <strong>of</strong> the drought to the global potential<br />
<strong>of</strong> unconventional oil and gas supplies …<br />
Drought drives up gas consumption and prices<br />
The current drought gripping eastern Australia is responsible<br />
for increased gas usage and higher prices, according to a<br />
major report released today on oil and gas production for<br />
the opening three months <strong>of</strong> <strong>2007</strong>. The report, by energy<br />
advisory group <strong>Energy</strong>Quest (http://www.energyquest.<br />
com.au), revealed a 20% jump in gas production in eastern<br />
Australia in the latest March quarter, compared with the<br />
same period last year.<br />
“This reflects growth in gas-fired electricity <strong>of</strong> 67%.<br />
Generation from hydro has fallen by 18% and total coal<br />
generation has been flat, constrained in Queensland and<br />
Victoria by water restrictions,” said <strong>Energy</strong>Quest’s CEO,<br />
Dr Graeme Bethune.<br />
“Strong demand for gas has also pushed up wholesale gas<br />
prices, with average Victorian spot prices up 27% to $3.38<br />
per gigajoule on the previous March quarter,” he said.<br />
The <strong>Energy</strong>Quest quarterly report also shows that <strong>Australian</strong><br />
proved and probable gas reserves increased by 15% to<br />
40,454 PJ in 2006. There were gas reserves <strong>of</strong> 14,199 PJ on<br />
the east coast and 26,254 PJ on the west coast. East coast<br />
growth reflected increases in both conventional gas and coal<br />
seam methane.<br />
Technology a key to Australia’s gas future<br />
A technology roadmap defining future research priorities<br />
to support Australia’s growing gas industry was presented<br />
by CSIRO (http://www.csiro.au) at APPEA’s conference in<br />
Adelaide on 18 April <strong>2007</strong>. Developed in close consultation<br />
with industry, the roadmap addresses the needs <strong>of</strong> both<br />
conventional and unconventional gas industries and covers<br />
the value chain from exploration, production, processing,<br />
utilisation and end use.<br />
Australia’s large natural gas resource has the potential to<br />
provide security <strong>of</strong> supply for transport fuels for Australia,<br />
particularly with the forecast declining levels <strong>of</strong> selfsufficiency<br />
in oil. However, according to CSIRO Petroleum’s<br />
Deputy Chief, Dr Dave Whitford, there are significant<br />
technological hurdles which must be overcome before the<br />
full potential <strong>of</strong> gas is realised.<br />
“Many <strong>of</strong> the technical issues are unique to Australia and<br />
therefore demand local solutions – we cannot necessarily<br />
rely on imported technology,” Dr Whitford said.<br />
“Much <strong>of</strong> Australia’s large gas resource is economically<br />
stranded, with 80% located in remote <strong>of</strong>fshore locations. To<br />
access these resources, research and development are required<br />
to drive down production and processing costs. However, gas<br />
has the potential to make a major contribution to lowering<br />
greenhouse gas emission levels from energy consumption,<br />
even without carbon capture and storage. Given the diverse<br />
range <strong>of</strong> research opportunities, Australia has the potential<br />
to become a global leader in gas technologies.”<br />
It was the identification <strong>of</strong> these research opportunities that<br />
led to the AusGas initiative, conceived in 2004. AusGas is<br />
a national alliance <strong>of</strong> research centres in partnership with<br />
industry to address the technology challenges <strong>of</strong> the local<br />
gas industry.<br />
“A series <strong>of</strong> AusGas industry forums explored the<br />
opportunities and challenges for the industry,” said James<br />
Pullar, Commercial Advisor for CSIRO Petroleum.<br />
The principal drivers for gas-related research and development<br />
are the need to reduce costs and reduce emissions while<br />
ensuring long-term security <strong>of</strong> supply. It was from these<br />
consultations that the technology roadmap has been<br />
developed. The roadmap identifies three main areas <strong>of</strong><br />
research focus: a secure and competitive supply <strong>of</strong> energy<br />
– particularly for transport fuels, low-emissions energy and<br />
wealth generation.<br />
Huge potential in unconventional oil and gas sources<br />
(Extract from the UK <strong>Energy</strong> <strong>Institute</strong>’s publication <strong>Energy</strong><br />
World, May <strong>2007</strong>, page 3)<br />
The world’s potential ‘unconventional’ sources <strong>of</strong> oil and<br />
natural gas exceed the current estimates <strong>of</strong> undiscovered<br />
conventional oil and gas sources around the world, according<br />
to a study released in February by energy analysts at Wood<br />
Mackenzie. The study estimates that unconventional<br />
sources such as heavy oil (including oil sands), ‘tight’ gas<br />
(gas trapped in nearly impermeable rock formations), coal<br />
bed methane, and shale oil could add up to the equivalent<br />
<strong>of</strong> 3.6 trillion barrels <strong>of</strong> oil. By 2025 unconventional oil is<br />
expected to supply more than 20% <strong>of</strong> global demand, and<br />
unconventional gas is likely to be as least as important. For<br />
48 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
example, Wood Mackenzie forecasts it will account for over<br />
40% <strong>of</strong> US gas supply by 2010.<br />
The study also identified the critical factors for successful<br />
development <strong>of</strong> these hydrocarbons which span technical,<br />
commercial, fiscal and environmental issues. In particular,<br />
the study warns that in order to unlock the potential <strong>of</strong><br />
unconventional hydrocarbons, companies will need to fully<br />
understand the risks associated with the different challenges<br />
to ensure their investments are successful – the key risk is<br />
not in discovering the resource, but in identifying areas<br />
where the critical factors are in place to enable economic<br />
development. The study concluded that short to mid-term<br />
development will be driven by commodity prices.<br />
http://www.energyinst.org.uk<br />
ENERGY EFFICIENCY<br />
… from smelting aluminium and desalinating water to<br />
‘district’ energy …<br />
Cool smelting<br />
<strong>Australian</strong> researchers at CSIRO (http://www.csiro.au) are<br />
investigating a new way <strong>of</strong> making aluminium that could<br />
cut the energy required to produce the metal by up to 30%.<br />
Aluminium is an energy-intensive industry, consuming<br />
as much as 15% <strong>of</strong> Australia’s electricity. Over the past<br />
decade, the industry has gone some way towards reducing<br />
greenhouse gas emissions from its smelter potlines and<br />
improving its energy efficiency. Now, the industry is working<br />
with the Light Metals Flagship – a national research program<br />
led by CSIRO – to investigate the use <strong>of</strong> ionic liquids in<br />
reducing the very high temperatures needed for aluminium<br />
smelting. The Flagship’s ionic liquids research project leader,<br />
Dr Theo Rodopoulos, says the key to ionic liquids is their<br />
low melting point.<br />
“Using ionic liquids instead <strong>of</strong> molten cryolite could<br />
dramatically reduce a smelter’s energy needs,” he said.<br />
“Aluminium is currently produced through electrodeposition,<br />
where the alumina is dissolved in a molten<br />
cryolite bath at 1,000°C and an electric current is applied to<br />
separate aluminium from oxygen. By contrast, ionic liquids<br />
typically melt below 100°C. If they can be used instead <strong>of</strong><br />
molten cryolite, they could dramatically reduce a smelter’s<br />
energy needs.”<br />
The Flagship is working with CSIRO Minerals and mining<br />
company Rio Tinto to develop ionic liquids for aluminium<br />
production. Rio Tinto’s technology support general manager,<br />
Dr Ray Shaw, said that although research on ionic liquids<br />
is still in its early days, it is a novel approach that the<br />
company is monitoring closely. Ionic liquids could reduce<br />
the electricity used in aluminium production by 20–30%.<br />
“Whether that’s achievable or not is uncertain at this early<br />
stage, but if there’s an opportunity to improve, then we’re<br />
interested in exploring it,” Dr Shaw said.<br />
Ionic liquids could also be used as alternative media for<br />
reprocessing nuclear fuel and waste in the nuclear power<br />
industry, and as catalysts or solvents in a host <strong>of</strong> other<br />
industrial processes. CSIRO is also exploring their use<br />
as electrolytes in lithium batteries, because the organic<br />
solvents used in lithium battery manufacture are volatile<br />
and flammable. Other potential uses include carbon dioxide<br />
capture in power plants, desulphurisation <strong>of</strong> fuels and even<br />
perfume production.<br />
<strong>Energy</strong>-efficient desalination not a pipe dream<br />
The delivery <strong>of</strong> energy efficient desalination received a boost<br />
on 18 May with the establishment <strong>of</strong> the Advanced Membrane<br />
Technologies for Water Treatment Research Cluster – a<br />
major new research collaboration between the CSIRO’s<br />
Water for a Healthy Country Flagship (http://www.csiro.<br />
au) and nine <strong>of</strong> Australia’s leading universities. The research<br />
aims to dramatically increase efficiency, and reduce the<br />
financial and environmental costs <strong>of</strong> producing desalinated<br />
water. The research will help advance water desalination as<br />
an alternative water supply option for Australia. The cluster<br />
brings together some <strong>of</strong> Australia’s leading scientists from a<br />
range <strong>of</strong> disciplines in a bid to place Australia at the forefront<br />
<strong>of</strong> novel membrane development. Led by Pr<strong>of</strong>essor Stephen<br />
Gray <strong>of</strong> Victoria University, a multi-disciplinary research<br />
team will carry out a comprehensive evaluation <strong>of</strong> existing<br />
membranes and develop new energy-efficient membranes.<br />
“Many desalination and recycling programs rely on a process<br />
called reverse osmosis, where the water is forced through<br />
a semi-permeable membrane, removing salts and any other<br />
contaminants,” Pr<strong>of</strong>essor Gray said.<br />
“These membranes need regular replacement and cleaning,<br />
but they also require a large amount <strong>of</strong> energy to force water<br />
through what are nano-sized pores. We aim to improve<br />
membrane design to increase their energy efficiency and<br />
reliability, thus reducing the financial and environmental<br />
costs <strong>of</strong> producing desalinated and recycled water. We<br />
also aim to improve membrane ’anti-fouling’ properties,<br />
that is the ability <strong>of</strong> the membrane to ‘self-clean’. When<br />
contaminants are removed from water, some <strong>of</strong> them adhere<br />
to the surface. These contaminants build up on the surface,<br />
increasing the pressure and energy required. Chemicals are<br />
used to clean the membranes, but membrane surfaces that<br />
are less sticky would reduce the pressure and energy required<br />
and the frequency <strong>of</strong> cleaning.”<br />
The research will link with, and inform, related CSIRO<br />
research into membrane and carbon nanotube water filtration<br />
technologies. In combination with other research projects led<br />
by CSIRO, the aim is to reduce the amount <strong>of</strong> energy required<br />
to desalinate seawater using membranes by up to 50%.<br />
District energy<br />
Reported in the March/April <strong>2007</strong> issue <strong>of</strong> Ecogeneration,<br />
the journal <strong>of</strong> the <strong>Australian</strong> Business Council for Sustainable<br />
<strong>Energy</strong>, is the story <strong>of</strong> Australia’s first residential district<br />
energy system on the urban fringe <strong>of</strong> western Sydney. District<br />
energy uses small (in this case, gas) cogeneration plants to<br />
supply electricity to a local housing estate. The heat from<br />
the cogeneration plants is used to supply the estate with hot<br />
water, warm air for heating and chilled water for cooling. At<br />
49 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
the Vision Estate in Glenfield, 16 homes are connected to a<br />
160 kW plant for all their power, heating and cooling needs.<br />
Later in <strong>2007</strong>, 200 homes will be added to the network and<br />
there will be three generators underground on the estate.<br />
They will work independent <strong>of</strong> the public grid, but will be<br />
linked to the grid in order to export any surplus electricity.<br />
The homes BASIX and <strong>Energy</strong> Star compliant and are<br />
equipped with energy-efficient equipment. Housing estates<br />
with district energy achieve efficiency levels <strong>of</strong> 70–80%<br />
compared to public grid power efficiencies <strong>of</strong> 30–50%. For<br />
further information see http://www.gridx.com.au.<br />
PEOPLE AND PLACES<br />
The CO2CRC<br />
The Hon Julie Bishop, Commonwealth Minister for<br />
Education, Science and Training, <strong>of</strong>ficially opened the new<br />
<strong>of</strong>fices <strong>of</strong> the Cooperative Research Centre for Greenhouse<br />
Gas Technologies (CO2CRC) in Canberra on 20 May. In<br />
welcoming the minister, chief executive Dr Peter Cook<br />
acknowledged the importance <strong>of</strong> the CRC Program to<br />
Australia’s research effort, and outlined the CRC’s current<br />
activities. With a budget <strong>of</strong> around A$160 million over<br />
seven years and more than 100 collaborating researchers and<br />
staff, the CO2CRC is now one <strong>of</strong> the largest greenhouse gas<br />
technology research programs in the world.<br />
“The acid test is not in being the largest program but in<br />
delivering key outcomes,” said Dr Cook.<br />
“I believe that we have an outstanding track record not only<br />
in our collaborative research, but also in the demonstration<br />
and application <strong>of</strong> that research. The Otway Basin project<br />
in Victoria is one <strong>of</strong> the most ambitious geosequestration<br />
demonstration projects in the world, with an outstanding<br />
monitoring and verification program that we have developed<br />
in conjunction with the AGO and the EPA.<br />
“We are also testing the boundaries in many other areas<br />
too including licencing and regulation, as well as fluid<br />
flow modelling and risk assessment. We have two very<br />
important CO2 capture projects underway in collaboration<br />
with International Power and HRL. We have several<br />
capture patents lodged or underway. Our CO2 storage work<br />
has identified commercially and environmentally very<br />
significant storage opportunities for Australia, both onshore<br />
and <strong>of</strong>fshore. And we have a growing commercial arm that<br />
is active throughout Australia and globally.<br />
Dr Cook highlighted the collaborative nature <strong>of</strong> the work<br />
with government departments and agencies, universities,<br />
major companies and others – together dubbed ‘Team<br />
Australia’.<br />
“This team approach has enabled Australia to punch far above<br />
its weight internationally in greenhouse gas technologies,”<br />
said Dr Cook.<br />
The following day, the CO2RC announced its participation<br />
in a consortium appointed to determine Ireland’s all-island<br />
potential for geological storage <strong>of</strong> carbon dioxide, assessing<br />
capacity, risk <strong>of</strong> leakage, cost, and relationship to suitable<br />
sources <strong>of</strong> carbon dioxide emissions. Others in the consortium<br />
include CSA Group and Byrne Ó Cléirigh in Dublin and<br />
the British Geological Survey. The CO2CRC will lead the<br />
project team in both risk assessment and the calculation <strong>of</strong><br />
commercial potential for carbon dioxide storage, and will<br />
assist with identification <strong>of</strong> storage locations, development<br />
and analysis <strong>of</strong> models for potential carbon dioxide traps,<br />
and calculation <strong>of</strong> both theoretical and accessible carbon<br />
dioxide potential.<br />
Curtin University <strong>of</strong> Technology<br />
Curtin University <strong>of</strong> Technology’s School <strong>of</strong> Economics<br />
and Finance has appointed Pr<strong>of</strong>essor Anthony (Tony) Owen<br />
Pr<strong>of</strong>essor <strong>of</strong> <strong>Energy</strong> Economics, the first position <strong>of</strong> its<br />
kind in Australia. <strong>Energy</strong> economics focuses on economic,<br />
environmental, financial and management issues as they<br />
relate to oil, gas and other parts <strong>of</strong> the energy sector.<br />
“In addition to his academic qualifications, Pr<strong>of</strong>essor<br />
Owen has undertaken energy-related consulting activities<br />
in Australia, China, Denmark, Indonesia, Norway, the<br />
Philippines and the UK,” said Pro Vice-Chancellor <strong>of</strong><br />
Research and Development, Pr<strong>of</strong>essor Linda Kristjanson.<br />
Pr<strong>of</strong>essor Owen will take an active role in the Oil and Gas<br />
Management Area <strong>of</strong> Research Excellence (OGM AORE)<br />
at Curtin, which is uniquely placed to develop and maintain<br />
expertise in the field, particularly amid the current booming<br />
oil and gas industry in Western Australia. The OGM AORE<br />
seeks to provide an understanding <strong>of</strong> the methods and<br />
designs which result in the most efficient environment for<br />
the exploration, production, transmission, transportation,<br />
distribution, storage and retailing <strong>of</strong> oil and gas products.<br />
This is achieved by examining issues such as regulation,<br />
taxation, markets, strategic management, technology<br />
development, links to science and engineering, IT, financing,<br />
supply chain/procurement, taxation and contracts.<br />
Pr<strong>of</strong> Owen has a PhD in Econometrics from the University<br />
<strong>of</strong> Kent (UK) and has held visiting appointments at the<br />
Universities <strong>of</strong> British Columbia, Colorado, Leeds and<br />
Exeter, the Organisation for Economic Cooperation and<br />
Development (Paris), the UK Department <strong>of</strong> <strong>Energy</strong><br />
(Harwell), and the International <strong>Energy</strong> Agency (Paris).<br />
He is a Fellow <strong>of</strong> the Royal Statistical Society, and Past<br />
President (2004) <strong>of</strong> the International Association for <strong>Energy</strong><br />
Economics and a founding member and President <strong>of</strong> the<br />
<strong>Australian</strong> Association for <strong>Energy</strong> Economics. He serves<br />
on the International Editorial Boards <strong>of</strong> <strong>Energy</strong> Policy and<br />
<strong>Energy</strong> Sources.<br />
Book Review<br />
<strong>Australian</strong> Innovation: Towards a Sustainable Future, by<br />
Valerie Khoo, CL Creations Pty Ltd (now incorporated into<br />
Associated Media Group), <strong>2007</strong>, 160 pages, RRP A$55<br />
(incl. GST).<br />
<strong>Australian</strong> Innovation: Towards a Substainable Future is<br />
a volume <strong>of</strong> examples <strong>of</strong> innovation in sustainability in<br />
Australia, and includes sections on “The emerging carbon<br />
market – a new economy” and “Sustainable energy – finding<br />
50 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
alternative fuels”. These sections include case studies from<br />
‘partner’ organisations including BHP Billiton, ActewAGL<br />
and <strong>Australian</strong> Paper, as well as other companies such as<br />
Hydro Tasmania, <strong>Australian</strong> Renewable Fuels, Enecon<br />
and Ozmotech. Enecon is growing mallee trees to generate<br />
energy, provide eucalyptus oil and combat salinity; and<br />
Ozmotech is converting plastic to a fuel source. The other<br />
energy examples are the <strong>Australian</strong> National University/<br />
Origin <strong>Energy</strong> SLIVER cell technology and the work <strong>of</strong> the<br />
CSIRO <strong>Energy</strong> Transformed Flagship.<br />
<strong>Energy</strong> is only one part <strong>of</strong> this book (the others being water and<br />
waste), and the examples are fairly straightforward summaries.<br />
However, the book highlights the importance <strong>of</strong> the energy<br />
sector in any conversation about our future, and includes<br />
aspects <strong>of</strong> product stewardship, social change, community<br />
participation and finance. Essentially, it is a promotion <strong>of</strong> the<br />
‘sustainability’ activities <strong>of</strong> the organisations represented.<br />
The text is supported by a companion website, http://www.<br />
sustained.com.au. The website <strong>of</strong>fers a free fortnightly<br />
eNewsletter; global commentary on sustainability through<br />
podcasts and videocasts; latest news, case studies, event<br />
updates, an eco store; and a searchable database on<br />
sustainability and innovation topics. Coming soon to the site<br />
will be a sustainable products and services directory; cultural<br />
exchanges; and sustainable destinations. Such is the future,<br />
with websites becoming an increasingly important media for<br />
communication. This website belongs to Associated Media<br />
Group, a communications and publishing company.<br />
Did you see …? (interesting places to visit on the web)<br />
Did you see the first three current IPCC working group<br />
summary reports for policy makers – The Physical<br />
Science Basis, Impacts, Adaptation and Vulnerability,<br />
and Mitigation <strong>of</strong> Climate Change? The fourth working<br />
group summary report, Climate Change in <strong>2007</strong>, was<br />
due out soon. You can find these reports and more from<br />
the Intergovernmental Panel on Climate Change at<br />
http://www.ipcc.ch/<br />
Did you see the survey <strong>of</strong> European citizens that found<br />
only 14% consider energy-related issues as one <strong>of</strong> the<br />
most important topics in their country today? The three<br />
top issues are unemployment, crime and health care.<br />
Of all the energy issues, the most important by<br />
far is energy prices. See the report on this survey,<br />
Eurobarometer on <strong>Energy</strong> Technologies, and a whole<br />
lot <strong>of</strong> other interesting research at http://ec.europa.<br />
eu/research/energy/index_en.htm<br />
Did you see the communiqué <strong>of</strong> the 13th meeting <strong>of</strong> the<br />
<strong>Australian</strong> Ministerial Council on <strong>Energy</strong> which was<br />
held on 25 May? Topics discussed include the impact<br />
<strong>of</strong> the drought on the national electricity market, energy<br />
market reform, smart meters, the national framework<br />
for energy efficiency, and the Council <strong>of</strong> <strong>Australian</strong><br />
Governments (COAG) climate change agenda. For a<br />
copy <strong>of</strong> this communiqué and reports on recent MCE<br />
activities, see http://www.mce.gov.au<br />
Excellence in <strong>Energy</strong> Awards<br />
The Sydney, Newcastle and Canberra Branches <strong>of</strong> the <strong>Australian</strong> <strong>Institute</strong> <strong>of</strong> <strong>Energy</strong> are pleased to announce<br />
the <strong>2007</strong> Excellence in <strong>Energy</strong> Awards.<br />
These awards aim to recognise and reward those individuals and organisations that, in the view <strong>of</strong> a judging<br />
panel, have made an outstanding contribution to the energy sector in New South Wales and the ACT.<br />
The awards are open to individuals and companies involved in energy projects or activities that have particular<br />
relevance to New South Wales or the ACT, and have been completed since 1 January 2002. Applicants must<br />
be a member <strong>of</strong> the <strong>Institute</strong>, however non-members can join as part <strong>of</strong> their application.<br />
A number <strong>of</strong> categories are available, including a Young Achiever Award for young energy<br />
pr<strong>of</strong>essionals.<br />
Further details are provided in an application pack which is available from the Sydney Branch page on the<br />
website (http://www.aie.org.au/syd/). The closing date is 31 July <strong>2007</strong>, to provide sufficient time for the<br />
judging panel to review all applications.<br />
The awards will be presented at a ceremony held on Tuesday 4 September in Sydney at the <strong>of</strong>fices <strong>of</strong> Blake<br />
Dawson Waldron. Notice and registration form will be at http://www.aie.org.au/syd/ soon.<br />
51 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
CALENDAR<br />
JULY <strong>2007</strong> TO JUNE 2008<br />
2–6 July in Lucerne, Switzerland Fuel Cell Forum 200 http:// www.efcf.com<br />
13–15 July in Istanbul, Turkey 2nd International Hydrogen <strong>Energy</strong> Congress & Exhibition<br />
http://www.ihec<strong>2007</strong>.org<br />
17–18 July in Sydney <strong>Australian</strong> <strong>Energy</strong> & Utility Summit<br />
http://www.acevents.com.au/energy<strong>2007</strong>/<br />
21–23 July in Shanghai, China <strong>2007</strong> China International Hydrogen & Fuel Cell Investment<br />
& Trade Expo http://www.hfce.cn<br />
25–26 July in Sydney Climate Change Summit http://www.climatechangesummit.com.au<br />
30–31 July in New York, USA 2nd Annual New York <strong>Energy</strong> Symposium and Hydrogen Expo<br />
http://www.neny.org/nes/<strong>2007</strong>/home<br />
1–2 August <strong>2007</strong> in Adelaide Hot Rock <strong>Energy</strong> Conference<br />
http://www.informa.com.au/hotrockenergy/<br />
21–23 August in Hawaii <strong>Energy</strong> Ocean <strong>2007</strong> http://www.energyocean.com<br />
30–31 August in Brisbane Climate Change and Business Conference<br />
http://www.climateandbusiness.com<br />
5–7 September in Shanghai, China New <strong>Energy</strong> (Hydrogen and Fuel Cells) http://www.hy-fcexpo.com<br />
9–13 September in Brisbane 14th IUAPPA World Congress & 18th CASANZ Conference<br />
http://www.icms.com.au/iuappa<strong>2007</strong>/<br />
18–21 September in Beijing, China ISES Solar World Congress http://www.ises.org/<br />
25–27 September in London, UK Fuel Cells in a Changing World: 10th Grove Fuel Cell Symposium<br />
http://www.grovefuelcell.com<br />
24–27 September in California, USA Solar Power <strong>2007</strong> http://www.solarpowerconference.com/<br />
27–30 September in Augsberg, Germany RENEXPO <strong>2007</strong> http:// www.renexpo.de<br />
2–6 October in Alice Springs SOLAR07 (45th Annual ANZSES Conference)<br />
http://www.solar07.org<br />
15–19 October in Texas, USA <strong>2007</strong> Fuel Cell Seminar http://www.fuelcellseminar.com<br />
15–17 October in Granada, Spain Hydro <strong>2007</strong> http://www.hydropower-dams.com<br />
17–18 October in Gold Coast <strong>Australian</strong> <strong>Energy</strong> User <strong>2007</strong> http://www.euaa.com.au<br />
30 Oct – 1 Nov in Beijing, China Methane to Markets Partnership Expo:<br />
http://www.methanetomarkets.org/expo/<br />
4–7 November in Montecatini Terme, Italy World Hydrogen Technologies Convention <strong>2007</strong><br />
http://www.whtc<strong>2007</strong>.com/<br />
11–14 November in Sydney <strong>Energy</strong> 21C, 9th International Transmission & Distribution Conference<br />
http://www.energy21c.com.au/<br />
11–15 November in Rome, Italy 20th World <strong>Energy</strong> Congress http://www.rome<strong>2007</strong>.it<br />
19–21 November in Bonn, Germany The case <strong>of</strong> energy autonomy: Storing Renewable Energies (ISES II)<br />
http://www.eurosolar.org<br />
17–21 February 2008 in Adelaide 3rd International Solar Cities Congress<br />
http://www.solarcitiescongress.com.au/<br />
15–19 <strong>Jun</strong>e in Brisbane WHEC 2008 http://whec2008.com<br />
If you know <strong>of</strong> any conferences or other major events that would be <strong>of</strong> interest to AIE members<br />
and will be held from October <strong>2007</strong> to September 2008 please email details and web link to editor@aie.org.au.<br />
52 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>
NEw MEMBERS<br />
naMe graDe Branch<br />
Mr Vigneswaran Kumaran Member Melbourne<br />
Mr Shamim Ahmad Member Sydney<br />
Dr Klaus Weber Fellow Canberra<br />
Mr Ben Link Graduate Sydney<br />
Mr Darren Gladman Member Melbourne<br />
Mr Ronald Hardwick Fellow Sydney<br />
Mr Royce Desousa Fellow Sydney<br />
Mr Paul Zurek Member Sydney<br />
Mr Chris Marshall Member Sydney<br />
Mr Mark Leszczynski Student Sydney<br />
Mr Cho Ng Student Sydney<br />
Ms Deanne Mcdonald-Ferritto Member Perth<br />
Mr David Peck Fellow Melbourne<br />
Mr James C<strong>of</strong>fey Member Melbourne<br />
Dr Stephanie Baldwin Member Sydney<br />
Ms Fiona Melville Associate Sydney<br />
NEw COMPANY MEMBERS<br />
cOMPany naMe rePresentatiVes Branch<br />
Western Power Mr Gavin Forrest Perth<br />
Mr John Farnhill Perth<br />
Petratherm Mr Terry Kallis Adelaide<br />
Mr Peter Reid Adelaide<br />
Watermark Mr Barry Newman Perth<br />
Mr Ray Tettman Melbourne<br />
Envestra Mr Scott Hardy Melbourne<br />
Mr Damien Skafte Melbourne<br />
<strong>Australian</strong> <strong>Energy</strong> Regulator Ms Sarah Keys Canberra<br />
MEMBERS RESIGNED<br />
Mr Scott Haig Canberra<br />
naMe Branch<br />
Mr Graham Baker Branch<br />
Mr David Maxwell Perth<br />
Miss Ngaire Mudd Melbourne<br />
Dr John Kingston Brisbane<br />
Mr Dale Suter Brisbane<br />
Mr Richard Scanlan Melbourne<br />
Mr Colin Probble Sydney<br />
Dr Brett Cohen Sydney<br />
COMPANY MEMBERS RESIGNED<br />
naMe Branch<br />
Allens Arthur Robinson Sydney