Origin Energy's Purari Hydropower Project - Australian Institute of ...
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VolUME 28 No. 4 – DECEMBER 2010<br />
www.aie.org.au<br />
OFFICIAL JOURNAL<br />
OF THE AUSTRALIAN<br />
INSTITUTE OF ENERGY<br />
BUMPER CHRISTMAS ISSUE<br />
<strong>Project</strong> Spotlight – <strong>Origin</strong> Energy’s <strong>Purari</strong><br />
<strong>Hydropower</strong> <strong>Project</strong><br />
IEA’s World Energy Outlook 2010<br />
Energy Awards, Options, and Policy<br />
PLUS CONFERENCE LIFTOUT:<br />
Australia’s Energy – Next Generation
ISSN 1445-2227<br />
(International Standard Serial Number allocated<br />
by the National Library <strong>of</strong> Australia)<br />
THE AUSTRAlIAN<br />
INSTITUTE oF ENERgy<br />
ENERgy<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 />
Members (and non-members) may place<br />
advertisements in ENERgyNews on behalf<br />
<strong>of</strong> themselves or their organisations. If you<br />
wish to use this opportunity contact:<br />
Joy Claridge<br />
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email: editor@aie.org.au<br />
Advertisements can include products,<br />
services, consulting, and positions vacant<br />
and required.<br />
Discounts are available for members and for<br />
all advertisements repeated in two or more<br />
issues.<br />
Subscription Information<br />
ENERgyNews is published by The <strong>Australian</strong><br />
<strong>Institute</strong> <strong>of</strong> Energy and is provided to<br />
all members as part <strong>of</strong> the membership<br />
subscription. Non-members may obtain<br />
copies <strong>of</strong> this journal by contacting either the<br />
Secretariat or the Editor.<br />
Contributions 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> Energy<br />
ABN 95 001 509 173<br />
Registered Office<br />
Level 1/613 Canterbury Road,<br />
Surrey Hills VIC 3127<br />
Postal Address<br />
PO Box 193<br />
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email: aie@aie.org.au<br />
Web Address<br />
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Print Post Approved No. PP 32604/00001<br />
Disclaimer<br />
Although publication <strong>of</strong> articles submitted<br />
is at the sole and absolute discretion <strong>of</strong> the<br />
<strong>Australian</strong> <strong>Institute</strong> <strong>of</strong> Energy, statements<br />
made in this journal do not necessarily<br />
reflect the views <strong>of</strong> the <strong>Institute</strong>.<br />
Contents<br />
President’s Message 82<br />
It’s a Wrap: <strong>Australian</strong><br />
government energy news 83<br />
<strong>Project</strong> Spotlight<br />
<strong>Purari</strong> <strong>Hydropower</strong> <strong>Project</strong> 84<br />
World Energy outlook 2010 86<br />
Branch Events<br />
US Energy and Climate Policy 88<br />
AIE Tasmania Branch Energy Prize 88<br />
Energy Options for Developed Countries 89<br />
<strong>Australian</strong> LNG Outlook 91<br />
SPECIAl CoNFERENCE lIFToUT<br />
Australia’s Energy – Next generation<br />
Awards 2010<br />
The AIE Medal 93<br />
The AIE Scholarship 93<br />
The AIE Postgraduate Student Energy Awards 94<br />
Articles<br />
Early Electricity Supply in Melbourne 96<br />
Hydrogen Association Launched 97<br />
Book Review<br />
Hydrogen Energy:<br />
Economic and Social Challenge 98<br />
Membership Matters 99<br />
Cover courtesy Santos<br />
ENERgyNews ENERgyNews — Volume — 28 Volume No. 4 December 28 No. 4 December 2010 2010 81
President’s Message<br />
Australia’s Energy – Next generation<br />
Tony Vassallo FAIE, President<br />
<strong>Australian</strong> <strong>Institute</strong> <strong>of</strong> Energy<br />
November saw the very successful<br />
AIE national conference with the<br />
theme, Australia’s Energy – Next<br />
Generation. Held in Adelaide, the<br />
conference was very well attended, and<br />
it provided a platform for the analysis<br />
and discussion <strong>of</strong> topics important<br />
to those in the energy community.<br />
Much <strong>of</strong> the discussion focussed on<br />
the need for well-thought-out energy<br />
policy at both state and national levels.<br />
It is fair to say that the current lack <strong>of</strong><br />
comprehensive energy policy is leading<br />
to short-term supply solutions and<br />
a delay in infrastructure investment<br />
that contributes to upward pressure on<br />
energy prices, as well as investment in<br />
more efficient energy end use.<br />
Globally, we are currently in a holding<br />
pattern with oil prices, due largely to<br />
pullback in demand coinciding with<br />
extra capacity. However, even under<br />
these benign conditions, the oil price<br />
seems to have found a floor around<br />
US$70/bbl. This is likely to last until<br />
around 2013 when excess capacity<br />
will be taken up and prices are likely to<br />
escalate. According to some scenarios,<br />
this could be alarmingly quick. As one<br />
<strong>of</strong> the presenters at the conference<br />
82 ENERgyNews — Volume 28 No. 4 December 2010<br />
noted, “If everyone in China decides<br />
to drive a car, then <strong>Australian</strong>s will<br />
be walking.”<br />
In Australia, we will also see rising gas<br />
prices as we connect to international<br />
markets on the east coast; even our<br />
domestic coal prices are rising. It is<br />
evident that the age <strong>of</strong> cheap energy<br />
is almost over. Electricity prices are<br />
rising – not because <strong>of</strong> a carbon<br />
price or from subsidies to renewable<br />
sources as some claim – but because<br />
<strong>of</strong> rising primary energy prices (coal<br />
and gas) and steeply rising network<br />
charges due mainly to the need to<br />
respond to increasingly peaky demand.<br />
Apparently, as conference delegates<br />
were told, South Australia has claim to<br />
the world record in ‘peakiness’.<br />
These comments are not unexpected.<br />
The AIE ran a symposium in 2003<br />
under the title, Record Electricity<br />
Demand Growth - Is Air-Conditioning<br />
the Only Sinner? At that event, the<br />
consequences <strong>of</strong> then (and since then)<br />
rapid uptake in air-conditioning were<br />
explained. The answer was supposed<br />
to be cost-reflective pricing such<br />
time-<strong>of</strong>-use tariffs and smart meters.<br />
But, as it turned out, there has been<br />
a strong pushback on these tariffs, as<br />
consumers find it is not that easy to<br />
shift load.<br />
Conference delegates were also told<br />
that the transport fuel mix is changing,<br />
with diesel growing and petrol demand<br />
remaining static. Our refineries,<br />
small by international standards, are<br />
having to source feedstock from more<br />
distant oil fields, making it harder to<br />
provide competitively priced refined<br />
products locally; while in nearby<br />
countries, very large refineries with<br />
excess capacity are willing and able<br />
to supply any shortfall. Increased<br />
reliance on imported transport fuels<br />
Merry Christmas from everyone at the AIE<br />
implies decreased energy security as<br />
well as higher prices. Perhaps it is time<br />
to look more seriously at the electric<br />
transport option. This would reduce<br />
our demand for liquid transport fuels,<br />
with the power supplied overnight,<br />
potentially from wind power. The<br />
onboard storage could then be used<br />
to load-level during afternoon/evening<br />
peaks. More generally, it is time to<br />
take energy storage more seriously.<br />
Like most emerging technologies the<br />
initial costs are very high, but these<br />
costs are coming down. As the price<br />
<strong>of</strong> electricity rises, the case for storage<br />
becomes stronger.<br />
As we know and as many <strong>of</strong> the<br />
conference presenters reinforced,<br />
the energy landscape is undergoing<br />
pr<strong>of</strong>ound change. This is making it<br />
even harder to develop sound energy<br />
policy. As energy pr<strong>of</strong>essionals we<br />
should contribute to policy scrutiny,<br />
debate and formulation. Don’t be<br />
afraid to make your views known!<br />
Your journal is one avenue for you to<br />
express your views. So, please make a<br />
contribution in 2011.<br />
On behalf <strong>of</strong> the AIE Board and the<br />
journal production team, I wish you<br />
and your family a Merry Christmas<br />
and a Happy New Year.<br />
Tony Vassallo FAIE
• The Multi-Party Climate Change Committee, chaired by the<br />
Prime Minister, will investigate options for implementing a<br />
carbon price and help build a consensus on how Australia will<br />
tackle climate change. The terms <strong>of</strong> reference were agreed to at<br />
the first <strong>of</strong> monthly meetings on 7 October 2010. A communiqué<br />
is released after each meeting. www.climatechange.gov.au<br />
• Two roundtables will support the Multi-Party Climate Change<br />
Committee. The nongovernment and business roundtables are<br />
tasked to engage with the community and ensure consultation<br />
occurs that can feed as advice to Government. Submissions will<br />
be called for input. www.climatechange.gov.au<br />
• The report <strong>of</strong> the Prime Minister’s Task Group on Energy<br />
Efficiency identified six recommendations to meet OECD<br />
energy efficiency improvements by 2020. This includes setting<br />
an aspirational target, a national energy savings initiative,<br />
improved data collection and analysis, and removing barriers<br />
for improvement. www.climatechange.gov.au<br />
• The Senate Committee on Fuel and Energy released a draft<br />
report detailing a recommendation to continue investigations.<br />
This follows two interim reports looking at the policies <strong>of</strong><br />
the Carbon Pollution Reduction Scheme and the Henry Tax<br />
Review to assess their impact on the fuel and energy industry.<br />
www.aph.gov.au/senate/<br />
• The <strong>Australian</strong> Government signed the A$100 million Smart<br />
Grid Smart City funding agreement to create Australia’s first<br />
commercial-scale smart grid. www.dret.gov.au<br />
• ABARE released its report, End use energy intensity in the<br />
<strong>Australian</strong> economy, which shows a trend towards improved<br />
energy efficiency. www.abare.gov.au<br />
• Funding for the Re-tooling for Climate Change program was<br />
suspended on 24 September 2010. www.ausindustry.gov.au<br />
• The Green Building Fund is to be expanded to include shopping<br />
centres and hotels with an additional A$30 million provided by<br />
the government. www.ausindustry.gov.au<br />
• Two coal seam gas projects in Gladstone have been approved<br />
with strict environmental conditions. Santos and Queensland<br />
Gas Company must respond to more than 300 requirements<br />
relating to groundwater, planning, monitoring, water pressure<br />
and conservation. www.environment.gov.au<br />
• The Commercial Building Disclosure program was launched on<br />
1 November 2010, requiring commercial buildings to disclose<br />
energy efficiency ratings when selling, leasing or subleasing<br />
<strong>of</strong>fice space with a net lettable area <strong>of</strong> 2000 square metres or<br />
more. www.climatechange.gov.au<br />
• The Bluewater and Climate Science Node, part <strong>of</strong> the Integrated<br />
Marine Observing System, will observe Australia’s oceans to<br />
allow greater understanding <strong>of</strong> climate change, ocean currents<br />
and marine ecosystems. www.imos.org.au<br />
• Amendments to Renewable Energy (Electricity) Regulations 2001<br />
were made on 14 October 2010 to include 10 additional eligible<br />
emissions-intensive-trade-exposed activities for the provision<br />
<strong>of</strong> partial exemption certificates. www.orer.gov.au<br />
It’s a Wrap<br />
<strong>Australian</strong> government energy news<br />
This snapshot featuring the latest programs, reports, consultation, legislation<br />
and funding announcements will be a regular item in ENERgyNews in 2011<br />
• Marking a major milestone in the development <strong>of</strong> energy<br />
markets, the Short Term Trading Market, a new wholesale<br />
gas trading market, commenced operaton in Sydney and<br />
Adelaide. www.aemogas.com.au<br />
• The <strong>Australian</strong> Energy Market Operator published its 2010<br />
Electricity Statement <strong>of</strong> Opportunities, which includes its latest<br />
long-term outlook for supply capacity in the National Electricity<br />
Market. www.aemo.com.au<br />
• The <strong>Australian</strong> Energy Market Commission (AEMC) called for<br />
submissions on an Options Paper for the Scale Efficient Network<br />
Extensions Rule change proposal. Submissions are required<br />
on the framework and how it will contribute to the National<br />
Electricity Objective. www.aemc.gov.au<br />
• The Ministerial Council on Energy requested an updated<br />
cost–benefit study <strong>of</strong> the Victorian smart meter rollout from the<br />
AEMC, prior to finalising its report, Advice on Cost Recovery for<br />
Mandated Smart Metering Infrastructure. www.aemc.gov.au<br />
• The <strong>Australian</strong> Energy Regulator (AER) released revised<br />
metering infrastructure charges for Victorian distribution<br />
network service providers, commencing 1 January 2011.<br />
www.aer.gov.au<br />
• The AER released its latest quarterly compliance report into the<br />
electricity and gas industries. www.aer.gov.au<br />
• An expert panel to assess proposed methods for developing<br />
and selling carbon credits under the Carbon Farming Initiative<br />
has been announced and will be seeking submissions.<br />
www.climatechange.gov.au<br />
• CSIRO began installing 450 large mirrors, called heliostats, for<br />
Australia’s largest solar–thermal tower system at the CSIRO<br />
National Solar Energy Centre in Newcastle. www.csiro.au<br />
• The National Energy Customer Framework is being rolled out.<br />
This reform is an initiative <strong>of</strong> the Ministerial Council on Energy<br />
that will harmonise regulation and provide consistent, national<br />
consumer protections in the energy sector. www.ret.gov.au<br />
• The Productivity Commission will undertake a study <strong>of</strong> emission<br />
and energy-reduction policies in key international economies to<br />
help inform the government’s plan to introduce a carbon price<br />
in Australia. www.pc.gov.au<br />
• Submissions are being sought in December 2010 on a draft<br />
guideline on the imposition <strong>of</strong> additional or more onerous<br />
requirements, pursuant to the National Electricity Rules<br />
as well as the approach to the Retail Market Performance<br />
Reporting. www.aer.gov.au<br />
• Approval has been given to Shell’s Prelude floating LNG facility in<br />
the Browse Basin, Western Australia. www.environment.gov.au<br />
• The Cleaner Car Rebate Scheme has been delayed, commencing<br />
on 1 July 2011. www.ausindustry.gov.au<br />
• The <strong>Australian</strong> Centre for Renewable Energy released a<br />
consultation paper on the A$100 million Renewable Energy<br />
Venture Capital fund. www.ret.gov.au<br />
ENERgyNews — Volume 28 No. 4 December 2010 83
<strong>Project</strong> Spotlight<br />
<strong>Purari</strong> <strong>Hydropower</strong> <strong>Project</strong><br />
Evaluating the potential <strong>of</strong> hydropower in Papua New Guinea<br />
Hydroelectric power is generated when water falling from<br />
reservoirs or flowing from rivers, streams or waterfalls<br />
is channelled through turbines. Once constructed, these<br />
turbines produce electricity with little to no greenhouse gas<br />
emissions. Hydroelectric power stations can be responsive to<br />
fluctuations in demand and also have the capability, subject<br />
to a continual supply <strong>of</strong> water, to produce base load power.<br />
With these attributes in mind, PNG Energy Developments<br />
Ltd (PNG EDL), a 50:50 joint venture between <strong>Origin</strong><br />
Energy and PNG Sustainable Development Program, is<br />
evaluating the hydroelectric power potential <strong>of</strong> the <strong>Purari</strong><br />
hydro resource at Wabo in the Gulf Province <strong>of</strong> Papua New<br />
Guinea (PNG).<br />
Map showing project location and proposed transmission line<br />
In September 2010, the governments <strong>of</strong> Queensland and<br />
Papua New Guinea signed a Memorandum <strong>of</strong> Cooperation<br />
with PNG EDL and <strong>Origin</strong> to support potential development<br />
<strong>of</strong> the project. Capturing the power <strong>of</strong> the existing river<br />
flows, the development under consideration would have the<br />
capacity to generate approximately 1800 MW <strong>of</strong> renewable<br />
base load electricity. It would provide a reliable source <strong>of</strong><br />
power available to villages and rural communities around<br />
Wabo and transform the area’s economic development<br />
prospects. It would result in improved infrastructure and<br />
better access to the Gulf Province, creating a focal point for<br />
provision <strong>of</strong> basic health and education services and a range<br />
<strong>of</strong> opportunities for local communities.<br />
84 ENERgyNews — Volume 28 No. 4 December 2010<br />
Power would also be transmitted, using low-loss HDVC<br />
(high voltage direct current) transmission technology,<br />
via Far North Queensland to Townsville where it would<br />
enter the <strong>Australian</strong> national grid. Its construction would<br />
create thousands <strong>of</strong> jobs in PNG and north and Far North<br />
Queensland. The project would provide mainland Australia<br />
for the first time with a large-scale source <strong>of</strong> year-round<br />
base load renewable power. It would also have some peaking<br />
capacity, thereby reducing the need for low-utilisation<br />
backup peaking generation that is required for intermittent<br />
renewables such as wind and solar.<br />
SPECIFICATIONS<br />
Proposed project location: <strong>Purari</strong> River PNG, near the<br />
village <strong>of</strong> Wabo<br />
Technology: <strong>Hydropower</strong>, generating<br />
electricity<br />
HVDC transmission<br />
technology connecting PNG<br />
and Australia, undersea<br />
Capacity: To generate 1800 MW <strong>of</strong><br />
reliable base load renewable<br />
electricity<br />
Timeframe: Feasibility study expected<br />
to be completed by the end<br />
<strong>of</strong> 2012<br />
A comprehensive feasibility study <strong>of</strong> environmental,<br />
sociological and engineering aspects is expected to be<br />
completed by the end <strong>of</strong> 2012. The joint venture will ensure<br />
that recognised international environmental and social<br />
standards are followed during the feasibility study <strong>of</strong> the<br />
project. In addition the project will undertake extensive<br />
consultation with communities and all levels <strong>of</strong> government<br />
in both Queensland and PNG. The joint venture will be<br />
guided by international environmental and social standards<br />
including those endorsed by the <strong>Australian</strong> and PNG<br />
governments, the International Finance Corporation,<br />
the World Commission on Dams and the International<br />
<strong>Hydropower</strong> Association.<br />
The project adds to <strong>Origin</strong>’s existing portfolio <strong>of</strong> renewable<br />
energy developments and options including wind, geothermal<br />
and solar, and builds on the company’s experience with hydro<br />
technologies through its 52% interest in New Zealand’s<br />
Contact Energy. <strong>Origin</strong> Energy is a major Australasian<br />
integrated energy company involved in gas and oil<br />
exploration and production, energy retailing and power<br />
generation. In addition to a range <strong>of</strong> projects by Contact,
<strong>of</strong> which it owns 52%, <strong>Origin</strong> is the developer <strong>of</strong> Mortlake<br />
Power Station, Darling Downs Power Station, Cullerin Range<br />
Wind Farm, Kupe Gas <strong>Project</strong>, SLIVER solar panels, and the<br />
Quarantine Power Station expansion, and is involved in a<br />
range <strong>of</strong> other activities.<br />
Q&A<br />
ENERgyNews asked <strong>Origin</strong> Energy, a corporate member<br />
<strong>of</strong> the <strong>Institute</strong>, some key questions about this project.<br />
Q. Why PNG and the <strong>Purari</strong> River?<br />
A. The area around Wabo constitutes a very significant<br />
hydro resource, with up to eight metres <strong>of</strong> rainfall every<br />
year, It has a 33,670 square kilometre drainage basin<br />
with a catchment mean annual discharge <strong>of</strong> 2500 cubic<br />
metres per second. The <strong>Purari</strong> River would fill Sydney<br />
Harbour in around two-and-a-half days. These attributes<br />
make the area extremely well suited for a hydropower<br />
development. The nature <strong>of</strong> the catchment means that<br />
the development would have a capacity factor in excess<br />
<strong>of</strong> 90%, and that water would continue to flow down the<br />
river all year round.<br />
Q. What makes this project viable now when it has been<br />
investigated previously?<br />
A. <strong>Project</strong> options in this region were investigated previously,<br />
with a series <strong>of</strong> engineering studies undertaken over the<br />
past 30 years. The studies identified the Wabo site as a<br />
highly favourable location for a hydropower project.<br />
In the absence <strong>of</strong> sufficient firm demand for the power<br />
in PNG; however, the project was not pursued. The<br />
current proposal uses modern transmission technology<br />
which will make power available not only within<br />
PNG but to Australia as well. This was not previously<br />
possible, as too much electricity would have been lost<br />
in transmission. HVDC technology similar to that used<br />
undersea between Tasmania and Victoria will be used<br />
to connect the hydropower plant in Wabo to Far North<br />
Queensland and, in turn, into the National Electricity<br />
Market at Townsville.<br />
Q. What will be the main benefits <strong>of</strong> the project if it is<br />
successful?<br />
A. The proposed hydro development would generate power<br />
available for use in communities around the plant. It<br />
could also power significant industrial development in<br />
PNG over time, for example at locations such as Daru<br />
situated along the transmission line. Investment in<br />
general infrastructure and local services as part <strong>of</strong> the<br />
project would also improve the local area’s economic<br />
development prospects more broadly, facilitating<br />
improvements in the provision <strong>of</strong> health care and<br />
education services and creating opportunities for local<br />
communities.<br />
For Queensland, the plant could deliver approximately<br />
five times the renewable energy currently generated<br />
in the state, helping Queensland deliver on its goal <strong>of</strong><br />
attracting 20% <strong>of</strong> Australia’s investment in renewable<br />
power by 2020. It would very significantly reduce the<br />
state’s emissions pr<strong>of</strong>ile compared to business-as-usual<br />
projections, while at the same time helping to provide<br />
the power necessary to develop northern Queensland’s<br />
world-class minerals deposits.<br />
Q. Why is this project a good fit for <strong>Origin</strong>?<br />
A. The project is consistent with <strong>Origin</strong>’s pursuit <strong>of</strong> a<br />
portfolio <strong>of</strong> renewable energy opportunities in Australia<br />
and select <strong>of</strong>fshore markets. The company is familiar<br />
with PNG; its LPG gas supply business has operated<br />
there for more than 30 years. <strong>Origin</strong> already has a<br />
significant integrated energy business in Queensland,<br />
with operations along the gas and electricity chain. These<br />
include exploration and development <strong>of</strong> CSG (coal seam<br />
gas) resources, Australia’s largest base load gas-fired<br />
power station in the Darling Downs, peaking power<br />
stations at Townsville and Roma, LPG import facilities<br />
and an LPG distribution business, and a large retail gas<br />
and electricity base.<br />
ENERgyNews — Volume 28 No. 4 December 2010 85
World Energy Outlook 2010<br />
The energy world faces unprecedented uncertainty<br />
The International Energy Agency’s (IEA’s) annual World Energy<br />
Outlook (WEO) is the world’s most authoritative source <strong>of</strong><br />
energy market analysis and projections, providing critical<br />
analytical insights into trends in energy demand and supply and<br />
what they mean for energy security, environmental protection<br />
and economic development. WEO–2010 provides updated<br />
projections <strong>of</strong> energy demand, production, trade and investment,<br />
fuel by fuel and region by region to 2035. For the first time,<br />
the central scenario anticipates future actions by governments<br />
to meet the commitments they have made to tackle climate<br />
change and growing energy insecurity. WEO-2010 also puts<br />
the spotlight on several topical issues, including how emerging<br />
economies – led by China and India – will increasingly shape<br />
the global energy landscape, and what more must be done and<br />
spent post-Copenhagen to limit the global temperature increase<br />
to 2°C and how these actions would impact oil markets.<br />
This article pulls together information from the executive summary,<br />
the fact sheets and some key graphs to highlight some <strong>of</strong> the IEA’s<br />
views on our energy future. For more, go to www.worldenergyoutlook.<br />
org, where the full report can be ordered online.<br />
The energy world faces unprecedented uncertainty. The global<br />
economic crisis <strong>of</strong> 2008–09 threw energy markets around the world<br />
into turmoil and the pace at which the global economy recovers<br />
holds the key to energy prospects for the next several years. But it<br />
will be governments, and how they respond to the twin challenges<br />
<strong>of</strong> climate change and energy security, that will shape the future <strong>of</strong><br />
energy in the longer term. (IEA World Energy Outlook 2010)<br />
This uncertainty has many sources, including:<br />
• How sustainable is the recovery from the recent global<br />
economic crisis?<br />
• Oil demand and supply are becoming less sensitive to price.<br />
What does this mean for future price movements?<br />
• Natural gas markets are in the midst <strong>of</strong> a revolution. Will it<br />
herald a golden era for gas?<br />
• Copenhagen Accord and G-20 subsidy reforms are key<br />
advances. Do they go far enough? Will they be fully<br />
implemented?<br />
• China and other emerging economies will shape the global<br />
energy future. Where will their policy decisions lead us?<br />
WEO–2010 addresses a number <strong>of</strong> critical questions about our<br />
energy future:<br />
1. What does the global energy outlook to 2035 look like?<br />
2. What will shape the future <strong>of</strong> oil?<br />
3. What will it take to unlock the Caspian region’s energy<br />
riches?<br />
4. How big are the potential gains from getting rid <strong>of</strong> fossil-fuel<br />
subsidies?<br />
5. How green will the energy future be?<br />
6. What will tackling climate change mean for the energy<br />
sector?<br />
86 ENERgyNews — Volume 28 No. 4 December 2010<br />
Outlook to 2035<br />
Under its central scenario – the New Policies Scenario (NPS)<br />
– world primary energy demand increases 36% from 2008 to<br />
2035. The NPS assumes cautious implementation <strong>of</strong> recently<br />
announced commitments and plans, even if yet to be formally<br />
adopted. It also provides a benchmark to assess achievements and<br />
limitations <strong>of</strong> recent developments in climate and energy policy.<br />
The other scenarios reported are the Current Policies Scenario<br />
(only those policies that had been formally adopted by mid-2010<br />
are implemented) and the 450 Scenario, which sets out an energy<br />
pathway consistent with the goal <strong>of</strong> limiting the increase in average<br />
temperature to 2°C. Under the NPS, non-OECD countries account<br />
for 93% <strong>of</strong> the projected growth in energy demand, reflecting<br />
faster economic growth; China alone accounts for 36%.<br />
Source: IEA WEO–2010<br />
Fossil fuels – coal, oil and gas – account for 50% <strong>of</strong> the projected<br />
growth in total primary energy demand; and oil remains the<br />
dominant fuel in the primary energy mix in 2035, albeit with<br />
a smaller share. The share <strong>of</strong> nuclear power increases from 6%<br />
to 8% and the share <strong>of</strong> modern renewable energy (hydro, wind,<br />
solar, geothermal, modern biomass and marine energy) increases<br />
from 7% in 2008 to 14% in 2035. Natural gas is set to play a<br />
central role in meeting the world’s energy needs for at least the<br />
next two-and-a-half decades. Global gas demand is projected to<br />
grow 44% by 2035 and China’s demand grows fastest, accounting<br />
for one-fifth <strong>of</strong> the increase. Over a third <strong>of</strong> the global increase<br />
in gas output comes from unconventional sources – shale gas,<br />
coal seam gas, ‘tight’ gas. The current glut in global gas-supply<br />
capacity (which could peak in 2011) will keep pressure on gas<br />
exporters to move away from oil-price indexation.<br />
The future <strong>of</strong> oil<br />
Oil demand (excluding bi<strong>of</strong>uels) continues to grow steadily<br />
in the NPS, reaching 99 mbpd by 2035. The transport sector<br />
accounts for all <strong>of</strong> this increase, with passenger cars the single<br />
largest contributor to increased oil consumption. Demand for<br />
mobility is rising everywhere, but especially in non-OECD<br />
countries. The global car fleet is projected to grow from just<br />
under 800 million vehicles today to close to 1.6 billion by 2035.<br />
China’s fleet is growing particularly fast; it is projected to jump<br />
from 40 million today to around 350 million by 2035. These cars<br />
will generally be more efficient than today’s models and some <strong>of</strong><br />
them will be powered by electricity rather than oil. Bi<strong>of</strong>uels will<br />
also displace some oil use. But the sheer scale <strong>of</strong> the increase
Source: IEA WEO–2010<br />
in the car fleet in non-OECD countries more than outweighs<br />
these factors, pushing up demand for oil-based fuels there and<br />
<strong>of</strong>fsetting a drop in car-fuel use in OECD countries.<br />
The global outlook for oil remains highly sensitive to policy action<br />
to limit rising demand and emissions. The projections in the NPS<br />
take account <strong>of</strong> announced plans to phase out oil subsidies as well<br />
as broader commitments to limit greenhouse gas emissions. Only<br />
in the 450 Scenario does the demand for oil fall in response to<br />
radical policy action to reduce fossil-fuel use. Oil supply is not<br />
expected to be an issue in the period to 2035, with unconventional<br />
oil set to play an increasingly important role.<br />
The Caspian region<br />
The Caspian region contains substantial resources <strong>of</strong> both oil<br />
and natural gas, which could underpin a sizeable increase in<br />
production and exports over the next two decades. This could<br />
make a significant contribution to ensuring energy security<br />
in the rest <strong>of</strong> the world, by increasing the diversity <strong>of</strong> oil and<br />
gas supplies. Analysis confirms the potential, but projections<br />
nonetheless reflect the difficulties in developing the region’s<br />
hydrocarbon resources, including the problems in building the<br />
transportation infrastructure to get those resources to market.<br />
The region remains highly energy-intensive, reflecting continuing<br />
gross inefficiencies in the way energy is used, as well as climatic<br />
and structural economic factors. If the region were to use energy<br />
as efficiently as OECD countries, consumption <strong>of</strong> primary energy<br />
in the Caspian as a whole would be cut by one-half.<br />
Source: IEA WEO–2010<br />
In the NPS, Caspian oil production grows strongly, especially<br />
over the first 15 years <strong>of</strong> the projection period. Kazakhstan<br />
contributes all <strong>of</strong> the increase. Most <strong>of</strong> the incremental oil<br />
output goes to exports. Caspian gas production is also projected<br />
to expand substantially, almost doubling by 2035 to around three<br />
times the current production <strong>of</strong> Norway. Turkmenistan and, to<br />
a lesser extent, Azerbaijan and Kazakhstan drive this expansion.<br />
As with oil, gas exports are projected to grow rapidly, and the<br />
Caspian has the potential to supply a significant part <strong>of</strong> the gas<br />
needs <strong>of</strong> Europe and China, which emerges as a major new<br />
customer, enhancing their energy diversity and security. The<br />
share <strong>of</strong> the Caspian in world inter-regional oil trade increases<br />
from 6% to 9%, and from 4% to 11% in gas trade.<br />
Fossil-fuel subsidies<br />
WEO–2010 identifies fossil-fuel subsidies as a significant<br />
distortion in energy markets. Consumption subsidies,<br />
comprising subsidies to fossil fuels used in final consumption<br />
and to fossil-fuel inputs to power generation, worldwide<br />
amounted to US$312 billion in 2009. Eradicating subsidies<br />
to fossil fuels would have a dramatic effect on global energy<br />
balances, enhancing energy security, reducing emissions <strong>of</strong><br />
greenhouse gases and air pollution, and bringing economic<br />
benefits. The reality is that only a small proportion <strong>of</strong> fossilfuel<br />
subsidies actually go to poor households, and phasing out<br />
these subsidies could represent an integral building block for<br />
tackling climate change.<br />
Green energy future<br />
The greatest scope for increasing the use <strong>of</strong> renewables in<br />
absolute terms lies in the power sector. In the NPS, renewablesbased<br />
generation triples between 2008 and 2035 and the share<br />
<strong>of</strong> renewables in global electricity generation increases from<br />
18% to almost one-third (catching up with coal).<br />
Source: IEA WEO–2010<br />
The increase comes predominantly from wind and hydropower.<br />
Government support remains the key driver, rising from US$57<br />
billion in 2009 to US$205 billion in 2035, but higher fossil-fuel<br />
prices and declining investment costs also spur growth. However,<br />
renewables are generally more capital intensive than fossil fuels, so<br />
the investment needed to provide the extra renewables capacity is<br />
very large. Investment needs are highest in China, which has now<br />
emerged as a leader in wind power and photovoltaic production,<br />
as well as a major supplier <strong>of</strong> equipment.<br />
Climate change and the energy sector<br />
The 2°C goal (a non-binding objective – set by the Copenhagen<br />
Accord in 2009 – limiting the increase in average global<br />
temperature to 2°C) can only be achieved with vigorous<br />
implementation <strong>of</strong> current commitments in the period to<br />
2020 and much stronger action thereafter. Cutting emissions<br />
sufficiently to meet the 2°C goal would require a far-reaching<br />
transformation <strong>of</strong> the global energy system. For example, in the<br />
450 scenario, oil demand peaks at 88 mbpd before 2020 and<br />
falls to 81 mbpd in 2035. A plunge in OECD demand more than<br />
<strong>of</strong>fsets continuing non-OECD growth.<br />
Each year <strong>of</strong> delay adds trillions <strong>of</strong> dollars to the cost <strong>of</strong> achieving<br />
the 2°C goal, and the timidity <strong>of</strong> current commitments has made<br />
it less likely that the goal will be achieved.<br />
ENERgyNews — Volume 28 No. 4 December 2010 87
Branch Events<br />
US Energy and Climate Policy<br />
Implications for Australia and the World<br />
Presentation by Dr Perry Sioshansi, President, Menlo Energy Economics,<br />
and Editor, EEnergy Informer, to Canberra Branch on 24 September 2010*<br />
President Obama has faced the same problems as Australia’s<br />
former Prime Minister Kevin Rudd in passing comprehensive<br />
climate change mandates, and not much progress was<br />
expected before November’s midterm elections. Depending<br />
on the outcome, perhaps there will be not much progress<br />
afterwards either. This leaves President Obama with limited<br />
choices, including resorting to the Clean Air Act and the<br />
limited authority <strong>of</strong> the US Environmental Protection<br />
Agency to make progress on climate issues, and the even less<br />
influential US Department <strong>of</strong> Energy on energy matters.<br />
The main issue is the large number <strong>of</strong> states with significant<br />
representation in the House <strong>of</strong> Representatives sourcing<br />
more than 50% <strong>of</strong> their energy needs from coal-fired power<br />
plants (Figure 1). So, while H.R. 2454: American Clean<br />
Energy and Security Act <strong>of</strong> 2009 (Waxman–Markey Bill) was<br />
proposed with the intention <strong>of</strong> a strong response to climate<br />
change, it became watered down with 85% <strong>of</strong> allowances<br />
given away for free. The failure <strong>of</strong> this Bill contributed to the<br />
failure <strong>of</strong> the US delegation in Copenhagen in 2009.<br />
Despite lack <strong>of</strong> progress nationally in the United States,<br />
many <strong>of</strong> the states have taken global leadership in setting<br />
energy and climate change targets. California passed AB32<br />
with the goal <strong>of</strong> reducing greenhouse gas emissions to 1990<br />
levels by 2010, representing a 25% reduction by 2020 and<br />
an 80% reduction by 2050. This is in addition to a separate<br />
target <strong>of</strong> 20% <strong>of</strong> electricity to be generated from renewable<br />
AIE Tasmania Branch Energy Prize<br />
88 ENERgyNews — Volume 28 No. 4 December 2010<br />
Figure 1<br />
Source: US Department <strong>of</strong> Energy<br />
sources by 2010 (33% by 2020). Both are complemented by<br />
an aggressive energy efficiency program and transportation<br />
initiatives. This has meant per capita electricity consumption<br />
in California is almost half that <strong>of</strong> the national average in<br />
the United States.<br />
* This event was held at the CSIRO Discovery Centre, and<br />
was supported by the <strong>Australian</strong> Solar Energy Society, the<br />
Association <strong>of</strong> Pr<strong>of</strong>essional Engineers, Scientists and Managers,<br />
Australia, and the Society for Sustainability and Environmental<br />
Engineering (a division <strong>of</strong> Engineers Australia).<br />
AIE Tasmania Branch awarded this year’s prize for an energyrelated<br />
honours project to Justin Robinson and Tim Tritton<br />
for their project H-Darrieus vertical axis wind turbine<br />
design and build. The AIE award is one <strong>of</strong> five presented to<br />
honours students in the University <strong>of</strong> Tasmania’s School <strong>of</strong><br />
Engineering on 2 November 2010. This project was selected<br />
from eight entries and judging was based on the poster<br />
presentation, discussion <strong>of</strong> the project with the judges and<br />
quality <strong>of</strong> research.<br />
Dr Jane Sargison, AIE Tasmania Branch Hon. Secretary, with<br />
award winners Tim Tritton and Justin Robinson
Energy options for Developed Countries:<br />
Making choices<br />
Presentation by Dr Adi Paterson, CEO, ANSTO to Sydney Branch on 31 August 2010*<br />
The recent history <strong>of</strong> restrictions on uranium mining and<br />
the ongoing lack <strong>of</strong> policy direction in the area <strong>of</strong> nuclear<br />
power in Australia mean that local R&D in nuclear power has<br />
been limited, with the majority <strong>of</strong> developments taking place<br />
<strong>of</strong>fshore. ANSTO’s new OPAL Reactor at Lucas Heights,<br />
nicknamed ‘Mona Lisa’, is now operating at close to maximum<br />
rated capacity. With medical isotope production growing,<br />
and research into radioactive waste disposal continuing with<br />
the Synroc process, which is out <strong>of</strong> international patent after<br />
30 years, ANSTO research morale is high.<br />
Australia has the world’s largest share <strong>of</strong> in-ground uranium<br />
resources, mineable at current costs; although the uranium<br />
price and mine pr<strong>of</strong>itability have slumped relative to other<br />
energy fuels, with only two small new local producers planned<br />
to add to its uranium production. Uranium production is<br />
dominated by BHP Billiton at Olympic Dam (South Australia)<br />
and Rio Tinto at Ranger (Northern Territory). The third major<br />
mine, Beverley (South Australia) is controlled by US private<br />
interests. Australia had a nuclear electricity opportunity<br />
with the planned Jervis Bay reactor in 1972, but declined to<br />
proceed in favour <strong>of</strong> persisting with cheap coal-fired power<br />
for electricity, a policy that has remained up to the present,<br />
with all its current environmental cost consequences.<br />
Global Energy Demand & Security<br />
Countries with the best access to a mix <strong>of</strong> traditional<br />
sources <strong>of</strong> electricity (ie coal, oil, gas and nuclear for base<br />
load electricity) have the greatest energy security. Coal will<br />
continue to be developed at higher rates due to its low cost<br />
in established infrastructure and the entrenched transport<br />
interests lobbying governments. These same governments<br />
are only now starting to recognise the environmental cost <strong>of</strong><br />
carbon emissions and global warming. Countries with access<br />
to mature renewable energy sources, such as wind and hydro,<br />
also have some degree <strong>of</strong> energy security from these sources<br />
and may in the future derive benefit from solar, geothermal,<br />
wave, etc, but at a much higher cost. Small ‘mono-option’<br />
renewable energy countries like Denmark (wind and fossil<br />
fuels) are known to have the highest electricity cost in Europe<br />
and, in any event, depend for grid reliability on Norway<br />
(dominantly hydro) and Sweden (nuclear and hydro).<br />
The United States, with large and diverse forms <strong>of</strong> energy,<br />
has just over 100 operating nuclear reactors and 50 years<br />
<strong>of</strong> low-risk operational technology through Westinghouse<br />
and General Electric. Eight years ago, the Committee on<br />
America’s Energy Futures was formed, with panels on energy<br />
efficiency technologies, alternative liquid transportation<br />
fuels, and electricity from renewable resources. The<br />
committee concluded that, “The United States could obtain<br />
substantial energy efficiency improvements, develop new<br />
sources <strong>of</strong> energy, and realise reductions in greenhouse gas<br />
emissions through the accelerated deployment <strong>of</strong> existing<br />
and emerging technologies in a diverse-portfolio approach<br />
to help meet the nation’s energy challenges. However<br />
mobilization <strong>of</strong> the public and private sectors, supported<br />
by sustained long-term policies and investments, will be<br />
required for the decades-long effort to develop, demonstrate,<br />
and deploy these technologies”. The report concluded that,<br />
“… it is imperative that the development and demonstration<br />
<strong>of</strong> key technologies be started very soon, even though some<br />
will be expensive, not all will be successful, and some may<br />
be overtaken by better technologies.”<br />
Figure 1 shows levelised costs for new base load sources <strong>of</strong><br />
electricity and for new intermittent renewable sources in<br />
the United States. Nuclear is shown to be a cost-competitive<br />
option against most <strong>of</strong> the presented new base load and<br />
intermittent options. However, the lower end <strong>of</strong> the cost<br />
band for wind (both <strong>of</strong>fshore and onshore) is cheaper than<br />
nuclear, with costs for wind continuing to fall relative to<br />
other options, and growth expected relative to existing power<br />
line services. Solar PV remains comparatively costly but has<br />
recently received increased government funding according<br />
to a US–<strong>Australian</strong> study.<br />
Figure 1: Levelised Cost <strong>of</strong> Electricity<br />
Note: the vertical shaded bar shows the approximate range<br />
<strong>of</strong> average US wholesale electricity prices in 2007, and the<br />
dashed vertical line shows the average value in 2007 which was<br />
US$0.057/kWh<br />
The US Energy Futures Committee has projected that<br />
renewable energy will expand its share <strong>of</strong> the US electricity<br />
market while coal-fired and nuclear power plants may<br />
reduce their share, with only three new nuclear plants under<br />
construction. Many other parts <strong>of</strong> the world, including<br />
Russia, China, India, Japan, South Korea and the Middle<br />
East, on the other hand, are set to continue increasing the<br />
share <strong>of</strong> nuclear power in their energy mix.<br />
Nuclear and Renewables<br />
In Europe, countries have taken very different pathways<br />
with respect to energy sources for electricity generation.<br />
Denmark predominantly relies on wind with some coal<br />
and gas but no nuclear. Finland uses equal shares <strong>of</strong> gas,<br />
coal, nuclear and renewables, and has a low electricity cost.<br />
France is 80% nuclear powered for electricity and has the<br />
lowest CO2 emissions and electricity cost <strong>of</strong> any country<br />
in the EU (European Union). The 2005 takeover <strong>of</strong> the UK<br />
Atomic Energy Commission by Areva and Electricity de<br />
ENERgyNews — Volume 28 No. 4 December 2010 89
France has seen three nuclear plants announced but not yet<br />
in construction; 14 existing nuclear station sites planned to<br />
be decommissioned over the next 5–10 years; and further<br />
new nuclear reactors planned to be built by 2030, mainly <strong>of</strong><br />
French and US designs. Globally Japanese and cheaper South<br />
Korean nuclear power stations are being heavily marketed,<br />
with China also proposing new sales to Pakistan. However,<br />
the United Kingdom’s return to nuclear power generation<br />
may be delayed by environmental impact considerations<br />
on siting new nuclear reactors, Areva's commissioning<br />
delays, and cost overruns for Finland’s ‘new generation’ fast<br />
breeder reactor. Germany has concentrated on geothermal<br />
and solar energy to replace nuclear, but is now considering<br />
a return to nuclear for base load electricity. Russia, with<br />
its vast natural resources, is the main oil, gas and uranium<br />
supplier to Germany and many <strong>of</strong> the smaller EU countries,<br />
via pipelines through Ukraine and Belorus.<br />
China, with its 1.3 billion people and rapidly expanding<br />
electricity generation capacity, predominantly relies on<br />
coal but is increasingly moving into hydro, nuclear, wind,<br />
and solar. India’s future electricity generation will also be<br />
heavily based on coal but with an increasing hydro, nuclear<br />
and geothermal/solar/wind component mix. As Asia is fast<br />
becoming the world’s future economic growth powerhouse, it<br />
is interesting to view current growth <strong>of</strong> nuclear power stations<br />
in this region (Table 1). Japan’s nuclear electricity share is<br />
constant, related to its current stagnant economy. After<br />
China, South Korea, with its heavy dependence on nuclear<br />
power, is the second fastest growing world economy.<br />
Table 1: Growth in nuclear power stations in Asia<br />
Country Operational<br />
plants<br />
Under<br />
construction<br />
Japan 54 2<br />
China 13 24<br />
South Korea 21 5<br />
India 19 4<br />
Taiwan 6 2<br />
Pakistan 2 1<br />
China is planning large and long-term growth in trade, as<br />
it displaces Japan as the world’s second largest economy in<br />
terms <strong>of</strong> GDP, after the United States. With China’s use <strong>of</strong><br />
imported raw materials and energy technology, a growing<br />
diversity <strong>of</strong> electricity options, and low labour costs, it<br />
may (in total GPD terms) catch up with the United State’s<br />
now sluggish economy over the next 30 years. China has<br />
connected three nuclear reactors to the grid in the past<br />
three months; 24 are under construction; and an additional<br />
60 nuclear power stations are planned to be built over the<br />
next 20 years. China is very keen to secure uranium and rare<br />
earth supplies from Australia.<br />
In the Middle East, Siemens has teamed with Russian<br />
Government-backed manufacturers <strong>of</strong> nuclear plants and is<br />
said to be involved in development planning <strong>of</strong> more than 30<br />
nuclear power stations for electricity generation.<br />
In the EU, Iceland (hydro, geothermal) and Norway, Austria<br />
and Switzerland (hydro) are all looking to increase their<br />
90 ENERgyNews — Volume 28 No. 4 December 2010<br />
use <strong>of</strong> renewable energy for electricity generation into<br />
the future. When viewed from a global scale, their total<br />
installed renewable (non-hydro) capacity is small relative<br />
to the renewable energy capacity <strong>of</strong> (in descending order)<br />
the United States, Japan, the Philippines, Italy, Mexico and<br />
Indonesia. Shallow geothermal energy is a major source <strong>of</strong><br />
low-cost electricity in these countries (except Japan), due<br />
to the Pacific Rim plate tectonic movements and related<br />
volcanic instability.<br />
Future renewable energy contributions to electricity<br />
generation in Australia were projected by the 2008 Garnaut<br />
Climate Change Review and the Treasury report, Low<br />
Pollution Future. Nuclear energy was not included as an<br />
option in the CPRS-5/550 ppm or Garnaut-25/450 ppm<br />
scenarios, however it was included in a CPRS-5/550 ppm/<br />
no CCS (carbon capture and storage) scenario, reflecting a<br />
possible future nuclear option replacing coal-fired power<br />
generation (Figure 2).<br />
Figure 2: Energy sources for electricity generation under CPRS-<br />
5/550ppm/no CCS<br />
We need a new way <strong>of</strong> looking at the mitigation <strong>of</strong> CO2.<br />
As expressed by futurist Jamais Cascio in December 2005,<br />
“Far too <strong>of</strong>ten, discussions <strong>of</strong> efforts to mitigate the worst<br />
effects <strong>of</strong> global warming bog down under an argument that<br />
is simultaneously factual and irrelevant: there is no single<br />
solution. Solar power (or wind, or nuclear or son<strong>of</strong>usion)<br />
is not going to be sufficient to replace all coal and oil use.<br />
Efficiency will not improve fast enough. (Geo)sequestration<br />
cannot bury enough CO2. These are all true, but only in<br />
isolation. The solution that will work comes not as a single<br />
bolt from the blue; but from a combination <strong>of</strong> multiple,<br />
varied efforts.”<br />
The countries recovering more quickly from the 2008<br />
global financial crisis are those rich in resources and with<br />
more diverse sources <strong>of</strong> energy for electricity generation.<br />
There are arguments in favour <strong>of</strong> developing nuclear energy<br />
in Australia while simultaneously growing the share <strong>of</strong><br />
renewable sources. Including nuclear addresses climate<br />
change while diversifying Australia’s energy mix away from<br />
coal. Unfortunately, nuclear energy is still in the ‘too hard’<br />
basket for both the government and opposition; both focus<br />
on CCS, renewables and energy efficiency. It is likely to be<br />
some time before this attitude changes. However, the signs<br />
are there that the inevitability <strong>of</strong> a mature debate around all<br />
potential energy options is one that Australia will have in<br />
the not too distant future.<br />
* Report prepared by David Hawley, AIE Sydney Branch<br />
Committee, who has 45 years experience in the nuclear and<br />
renewable energy industries.
<strong>Australian</strong> lNg outlook:<br />
opportunities and challenges<br />
Presentation by Dr Graeme Bethune, CEO, EnergyQuest,<br />
to Melbourne Branch on 25 August 2010<br />
This article combines an article by Dr Bethune that first<br />
appeared in the <strong>Australian</strong> Financial Review on 19 October<br />
2010 and key points from the presentation.<br />
The elegant young woman in the tailored pink suit slips on<br />
industrial gloves. She picks up a canister <strong>of</strong> freezing liquid.<br />
The digital display says -163°C. She slowly pours the liquid<br />
into a goldfish bowl. Will the goldfish live or die? And what<br />
is this? Some bizarre circus act? No, just another day at the<br />
Kogas Gas Science Museum at Incheon, one <strong>of</strong> the world’s<br />
largest LNG import terminals, not far from Seoul. The liquid<br />
is LNG and the woman is demonstrating the safety <strong>of</strong> LNG<br />
to an audience <strong>of</strong> excited kindergarten children. By the time<br />
they reach school Korean children probably know quite a<br />
lot about LNG and for good reason because the winters in<br />
Korea are very cold and Korea relies on LNG for virtually<br />
all its gas supplies.<br />
Not that Korea is far from countries with serious quantities<br />
<strong>of</strong> gas. Russia has the world’s largest gas reserves and it is<br />
only around 750 kilometres from Seoul to Vladivostok.<br />
Within two years Vladivostok will be linked by gas pipeline<br />
to the huge Russian Sakhalin gas field, which has estimated<br />
recoverable gas reserves <strong>of</strong> 80 trillion cubic feet, twice those<br />
<strong>of</strong> Gorgon. A gas pipeline from Russia to Korea would make<br />
obvious sense.<br />
The Koreans agree and have made numerous trips to Russia,<br />
trying to do a deal. However there are challenges. The<br />
obvious route for Russian gas would be via North Korea.<br />
However the tensions between North and South prevent<br />
this. North Korea continues to pursue its nuclear program<br />
and it is now also clear that the South Korean patrol boat<br />
sunk on 10 March, with a loss <strong>of</strong> 46 lives, was hit by a North<br />
Korean torpedo. No country would want to rely on North<br />
Korea for safe transit <strong>of</strong> its gas supplies.<br />
Another option would be an underwater pipeline <strong>of</strong>f the<br />
east coast <strong>of</strong> Korea. However, at around two kilometres, the<br />
water is too deep. A third option would be via China and the<br />
Koreans have also made numerous trips to China. However<br />
the Chinese want to secure their own gas supplies and have<br />
themselves recently made progress with Russia. This is a<br />
higher priority than any deal with Korea.<br />
Korea is the world’s second largest buyer <strong>of</strong> LNG after<br />
Japan. It has a diversified portfolio <strong>of</strong> supply contracts<br />
amounting to around 26 million tonnes per annum (Mtpa)<br />
with nine countries. Qatar is the biggest supplier, with 27% <strong>of</strong><br />
contracted supply. Qatar and Korea have a close relationship.<br />
Qatar supplies the gas and Korea built the ships that carry<br />
it. The other major suppliers are Malaysia (19%), Indonesia<br />
(16%) and Oman (16%). Australia is currently only a minor<br />
supplier, with a 0.5 Mtpa contract with the North West Shelf.<br />
Many years ago there was a tiff between the North West<br />
Shelf and Korea and for many years selling <strong>Australian</strong> LNG<br />
to Korea was like trying to get Greenpeace to embrace coal.<br />
However that is long ago and the Koreans are clearly taking<br />
much more interest in Australia.<br />
Kogas has agreements with Chevron to buy 1.5 Mtpa from<br />
the Gorgon LNG project, currently under construction, and<br />
1.95 Mtpa from the proposed Wheatstone project. Kogas<br />
has also been keeping a close eye on coal seam gas (CSG)<br />
developments. In the science museum there is a map showing<br />
their global upstream interests and it includes the alliance<br />
with Queensland CSG company, Blue Energy, announced<br />
last year. Now Kogas is waiting on the Korean Government<br />
to approve an <strong>of</strong>ftake agreement with the Petronas-Santos<br />
GLNG project at Gladstone. If this agreement goes ahead<br />
this would be a further vote <strong>of</strong> confidence in CSG-based<br />
LNG. It has been a tough journey trying to get established<br />
LNG buyers to sign up for the Queensland projects but they<br />
are coming around. QGC has deals with Tokyo Gas and<br />
CNOOC, both established buyers, and a GLNG deal with<br />
Kogas would be a further vote <strong>of</strong> confidence.<br />
Incidentally, the goldfish lived. For them it was just another<br />
day in the goldfish bowl and, for a goldfish, working at the<br />
Kogas Museum is a pretty good gig.<br />
This interest from Korea in <strong>Australian</strong> LNG is just one <strong>of</strong><br />
the indicators that the planets are aligned for Australia to<br />
become one <strong>of</strong> world’s biggest LNG exporters. It is already<br />
fourth largest LNG exporter (behind Qatar, Malaysia and<br />
Indonesia); heading for second, and LNG is Australia’s sixth<br />
largest export and moving up. The challenge for the projects<br />
now is in execution.<br />
Although <strong>Australian</strong> LNG is attractive to Korea and the<br />
other major LNG consuming countries in Asia for a number<br />
<strong>of</strong> reasons – large uncommitted gas resources; location in<br />
the booming Asia–Pacific region; an OECD country; a large<br />
choice <strong>of</strong> projects with the option <strong>of</strong> taking equity; and<br />
(until recently) political stability – there are challenges,<br />
including high costs; resource constraints; multiple<br />
stakeholders; environmental issues; and (at the moment)<br />
some political uncertainty.<br />
However Australia signed up around 16 million tonnes per<br />
year <strong>of</strong> new contracts in 2009 and a further 7 million tonnes<br />
so far this year. This is more than current <strong>Australian</strong> capacity,<br />
and we now have three major projects under construction,<br />
with a total investment <strong>of</strong> around A$70 billion – a huge<br />
commitment to <strong>Australian</strong> gas.<br />
ENERgyNews — Volume 28 No. 4 December 2010 91
Source: EnergyQuest<br />
Australia to host global lNg Conference<br />
in 2016<br />
On 17 November, it was announced that the next global LNG conference will be<br />
held in Perth in 2016. <strong>Australian</strong> Gas Industry Trust (AGIT) Chairman, Mr Ian Little,<br />
noted that the LNG conference Steering Committee’s decision to hold LNG-18 in<br />
Australia in 2016 reflected the international gas industry’s esteem for Australia.<br />
“In 2016, Perth will host more than 5000 international representatives and<br />
exhibitors from the global LNG industry,” Mr Little said. The LNG conference is held<br />
every three years and alternates between producing and consuming countries.<br />
The next LNG conference is scheduled for Houston, Texas, in 2013. The conference<br />
was last in Australia in 1998. APPEA (the <strong>Australian</strong> Petroleum Production &<br />
Exploration Association) said that the international gas industry’s decision to host<br />
LNG-18 in Australia reflects the growing global importance <strong>of</strong> Australia as an LNG<br />
producer. “Australia is already a world class LNG exporter and we have the most<br />
ambitious and most innovative LNG expansion plans <strong>of</strong> any country in the world,”<br />
said APPEA’s Chief Executive, Belinda Robinson. “We will be the first country in the<br />
world to develop a coal seam gas-based LNG sector and we are a strong contender<br />
to host the world’s first floating LNG project. By 2016, we will be well on our way<br />
to becoming the world’s top LNG producer.”<br />
92 ENERgyNews — Volume 28 No. 4 December 2010
The AIE Medal<br />
It was with great pleasure that AIE President Tony Vassallo<br />
awarded the AIE Medal to Dr David Allardice FAIE, Honorary<br />
Life Member <strong>of</strong> the <strong>Australian</strong> <strong>Institute</strong> <strong>of</strong> Energy, at the<br />
AIE National Conference dinner on 15 November 2010. Dr<br />
Allardice is the 12th recipient <strong>of</strong> this prestigious award in<br />
the 32 years since the <strong>Institute</strong> was formed in 1978. The AIE<br />
Medal recognises outstanding contributions in energy as well<br />
as exemplary service to the <strong>Australian</strong> <strong>Institute</strong> <strong>of</strong> Energy.<br />
“Dr David Allardice has had a distinguished career in the<br />
coal industry and has made an enormous contribution to the<br />
<strong>Australian</strong> <strong>Institute</strong> <strong>of</strong> Energy at both national and branch<br />
levels,” said Dr Vassallo. “David is currently active on the<br />
National Board and Melbourne Branch Committee and, over<br />
the years, he has contributed much time and expertise in<br />
important roles, including, until recently, National Treasurer<br />
for more than 10 years.<br />
“By the middle <strong>of</strong> the 1970s David had become Melbourne<br />
Group Secretary with the <strong>Institute</strong> <strong>of</strong> Fuel. He has served<br />
on the Melbourne Committee in some capacity almost<br />
continuously since. He is the driving force behind the very<br />
successful Postgraduate Student Energy Awards, now an<br />
important national <strong>Institute</strong> event. He joined National<br />
Council in 1982 as the Melbourne Group representative<br />
and has served on Council (now the Board) for nearly 30<br />
years, taking on the roles <strong>of</strong> Vice-President and President<br />
in the second half <strong>of</strong> the 1980s. He was made an Honorary<br />
Life Member <strong>of</strong> the <strong>Institute</strong> in 2003.<br />
“In 1994, David was awarded the Public Service Medal for<br />
outstanding service to the Victorian brown coal industry. As<br />
an international expert on the science and use <strong>of</strong> low rank<br />
coals, his career has focussed on improving the benefits to<br />
Victoria from the use <strong>of</strong> its vast brown coal resources. He was<br />
instrumental in bringing together Victorian and <strong>Australian</strong><br />
Government support for the billion-dollar Japanese brown<br />
coal-to-oil pilot plant project in the Latrobe Valley, which<br />
The AIE Scholarship<br />
Also presented at the AIE National Conference dinner on<br />
15 November 2010, this year’s AIE Study Scholarship was<br />
awarded to Mark Kealy, Energy Analyst with the Victorian<br />
Government Department <strong>of</strong> Innovation, Industry and<br />
Regional Development. The AIE Study Scholarships are<br />
<strong>of</strong>fered to assist young <strong>Institute</strong> members to further their<br />
knowledge in an energy-related discipline through study<br />
and/or visits to relevant industries and facilities.<br />
Mark’s area <strong>of</strong> interest is in how electricity consumers<br />
can realise the benefits <strong>of</strong> smart metering. To further his<br />
Awards 2010<br />
Dr David Allardice, worthy recipient <strong>of</strong> the AIE Medal<br />
was completed in 1991. Through his business, Allardice<br />
Consulting, he continues to make an important contribution<br />
working in the fields <strong>of</strong> energy technology and coal resource<br />
and technology assessment.<br />
“From the perspective <strong>of</strong> the Board, David has been a pillar <strong>of</strong><br />
common sense and stability, a powerhouse <strong>of</strong> effort, almost<br />
always volunteering – or being volunteered – for the toughest<br />
jobs. Not only has the AIE survived when other similar<br />
organisations have failed but we have a sound financial base<br />
to support our growth in size and relevance.”<br />
The award was a delightful surprise, but caught Dr Allardice<br />
somewhat unprepared. In his thank you speech, however, he<br />
emphasised how pleased he was to see the younger members<br />
<strong>of</strong> the <strong>Institute</strong> being so active through the Young Energy<br />
Pr<strong>of</strong>essionals and he was confident that they will take us into<br />
the future. ENERgyNews will interview Dr Allardice for<br />
March 2011 issue <strong>of</strong> the journal.<br />
investigation into this subject, he will attend the consumerfocussed<br />
Smart Energy Summit: Engaging the Consumer, to<br />
be held in Austin, Texas, on 24–26 January 2011. He will<br />
also set up industry meetings in the two most progressive<br />
locations in the United States in terms <strong>of</strong> smart metering –<br />
Texas and California.<br />
“In all the smart meter rollouts around the world, the<br />
electricity consumer is footing the bill,” Mark said. “Whether<br />
it is directly, through a smart meter charge on their bill, or<br />
indirectly when taxation revenue is used, the electricity<br />
ENERgyNews — Volume 28 No. 4 December 2010 93
Gideon Kuncoro explaining his project to Dr Denis Barrett<br />
FAIE (Member No. 10)<br />
94 ENERgyNews — Volume 28 No. 4 December 2010<br />
consumer ultimately pays. For this reason it is essential that<br />
all the available benefits for consumers be realised.”<br />
Mark will investigate ways in which consumers in the<br />
United States have been able to realise the benefits <strong>of</strong> smart<br />
metering. “Specifically, I hope to gain insight into the issues<br />
<strong>of</strong> educating and engaging consumers; their propensity<br />
to participate in energy management; and HAN (home<br />
automated network) technology,” he said.<br />
Study scholarship winners are required to report back to the<br />
<strong>Institute</strong>, and ENERgyNews looks forward to publishing<br />
an article by Mark in 2011.<br />
Dr Tony Vassallo (left) with Mark Kealy (right)<br />
The AIE Postgraduate Student Energy Awards<br />
In accord with the AIE National Conference’s focus on the<br />
Young Energy Pr<strong>of</strong>essionals, the National Postgraduate<br />
Student Energy Awards 2010 (PGSA) were held in<br />
conjunction with the conference in Adelaide on 15–16<br />
November 2010. Generously sponsored by HRL Technology<br />
Pty Ltd, this year’s PGSA competition brought together 11<br />
students from seven universities. The students’ posters were<br />
set up around conference venue so that delegates could<br />
discuss the work during the session breaks.<br />
The competition was strong, with a count-back necessary to<br />
separate 2nd and 3rd place, who were both only one point<br />
behind 1st place. The winners were:<br />
1. Bahman Shabani, RMIT University A$1000<br />
2. Reydick Balucan, University <strong>of</strong> Newcastle A$ 700<br />
2. Aaron Song, University <strong>of</strong> Melbourne A$ 700<br />
In presenting the trophies and cheques to the winners, HRL<br />
Technology’s Sam Clayton noted that the standard just keeps<br />
getting better every year. The topics reflect the challenges and<br />
potential solutions in energy now and into the future.<br />
Two other students were selected to participate – Brandon<br />
MacDonald, University <strong>of</strong> Melbourne, and Chiranjib Saha,<br />
Monash University – but circumstances beyond their control<br />
From left to right: Aaron Song, Bahman Shabani, Sam Clayton<br />
and Reydick Balucan<br />
prevented them from attending.<br />
National competitors were selected and financially supported by<br />
their AIE branches. The two largest selection events in the lead<br />
up to the conference were held in Melbourne and Sydney.<br />
Reydick Balucan explaining his project to judge Dr Andrew<br />
Dicks FAIE
The Students and Their <strong>Project</strong>s<br />
Student University <strong>Project</strong> Title<br />
Aaron Song Melbourne Functional conjugated polymers for photovoltaics<br />
Gideon Kuncoro Adelaide Laboratory-scale study <strong>of</strong> fluid-rock interaction in the enhanced<br />
geothermal system in Cooper Basin, South Australia<br />
Rowan Braham Sydney Solar powered air treatment through photocatalysis<br />
Amir Forghani Adelaide Investigation <strong>of</strong> virtual porous carbons for greater insight and better<br />
sustainable energy<br />
Xihe (James) Sun Sydney Novel carbon electrodes for zinc bromine flow batteries<br />
Bahman Shabani RMIT Solar-hydrogen combined heat and power systems for remote area<br />
power supply<br />
Yi Wang Curtin Mechanism <strong>of</strong> coke formation during thermal decomposition <strong>of</strong> bio-oil<br />
Kim Lee Chang Tasmania Novel <strong>Australian</strong> thraustochytrids for production <strong>of</strong> biodiesel and longchain<br />
omega-3 oils<br />
Nana Qi Adelaide 2D simulations <strong>of</strong> fluid dynamics in the bubble reactor for liquid fuel<br />
synthesis<br />
Reydick Balucan Newcastle Mineral carbonation: Nation-building with carbon dioxide for energy<br />
security and environmental sustainability<br />
Andri Halim Melbourne Novel mixed matrix membranes from blends <strong>of</strong> polyimide and<br />
polyPOSS nanocomposites for CO2 separation<br />
AIE Sydney Branch hosted the NSW/ACT Postgraduate<br />
Student Energy Awards on 12 October 2010 at the <strong>of</strong>fices <strong>of</strong><br />
Blake Dawson, where Mr Greg Everett, Chief Executive Officer,<br />
Delta Electricity, presented the awards. The 14 entries were<br />
assessed in three categories: Energy in Society; Innovation<br />
in Energy Science and Engineering; and Energy – Achieving<br />
More With Less. Six prizes (1st and 2nd in each category) were<br />
awarded, sponsored by Schneider Electric (major sponsor);<br />
CSIRO Energy Transformed Flagship and Blake Dawson. The<br />
three winners were invited to participate in the national awards.<br />
See http://aie.org.au/StaticContent/Images/SYD121010_<br />
Photos.pdf for report and images from this event.<br />
The AIE Melbourne Branch Postgraduate Student Energy<br />
Awards were held in conjunction with the All-Energy<br />
Conference and Exhibition on 6–7 October 2010 at the<br />
Melbourne Exhibition and Conference Centre. This was<br />
a particularly successful event for the <strong>Institute</strong>, with the<br />
Young Energy Pr<strong>of</strong>essionals being responsible for one <strong>of</strong> the<br />
conference streams – as it turned out the most successful<br />
stream <strong>of</strong> the event. All-Energy attracted around 3000<br />
delegates, which kept the 22 competing students very<br />
busy. Topics included solar cells, fuel cells, energy storage,<br />
biodiesel, carbon capture and natural gas pricing. Five<br />
prizes were awarded in three categories – general energy<br />
projects, renewable energy projects and encouragement<br />
award. All five winners were invited to participate in the<br />
national awards. Their prizes were made possible by generous<br />
sponsorship from HRL Technology Pty Ltd, Victorian<br />
Government Department <strong>of</strong> Primary Industries, Melbourne<br />
Energy Research <strong>Institute</strong>, and Garrad Hassan Pacific. See<br />
http://aie.org.au/StaticContent/Images/Student_Awards_<br />
Report_2010.pdf for report and images from this event.<br />
HRL’s Sam Clayton presenting 1st prize to Bahman Shabani<br />
ENERgyNews — Volume 28 No. 4 December 2010 95
Articles<br />
Early Electricity Supply in Melbourne*<br />
By Miles Pierce FAIE FIEAust, Chairman, Engineering Heritage Victoria<br />
In the second half <strong>of</strong> 1882 the <strong>Australian</strong> Electric Company<br />
(AEC) inaugurated an electricity supply facility based<br />
on steam engine driven generators in the ground floor<br />
<strong>of</strong> its Russell Place premises in central Melbourne. The<br />
plant powered arc lighting in nearby parts <strong>of</strong> Bourke and<br />
Swanston Streets and also supplied several nearby private<br />
customers. This nascent public electricity supply venture<br />
was contemporary with Edison’s first small public electricity<br />
supply scheme in London at Holborn Viaduct, commissioned<br />
in April 1882, and his famous Pearl Street central public<br />
supply power station in New York which started in September<br />
1882. AEC’s enterprise was also inaugurated within a year <strong>of</strong><br />
the public electricity supply for the small town <strong>of</strong> Godalming<br />
in Surrey, England, which is widely considered to have been<br />
the first public electricity supply in the world.<br />
At the end <strong>of</strong> 1882, the AEC demonstrated the then new<br />
incandescent electric lamps in the Atheneum Theatre with<br />
supply from their Russell Place generating plant. This was<br />
followed by an extensive installation <strong>of</strong> incandescent and<br />
arc lights in the nearby Opera House, later known as the<br />
Tivoli Theatre. In 1883, the Victoria C<strong>of</strong>fee Palace installed<br />
electric lighting in public rooms, and became another <strong>of</strong><br />
AEC’s early customers.<br />
In the succeeding years several other private enterprise<br />
electricity supply companies set up in competition to<br />
the AEC, with A U Alcock in Corr’s Lane and the Union<br />
Electric Company in Heffernan Lane being the most<br />
notable. Despite its early success, the AEC got into financial<br />
difficulties and was wound up to be replaced by the New<br />
<strong>Australian</strong> Electric Company (NAEC) in 1889. The new<br />
company, with substantive capital backing, immediately<br />
commenced the construction <strong>of</strong> a central generating plant<br />
in suburban Richmond. The first stage was in service by the<br />
following year with the main plant comprising three 2 kV<br />
Elwell single-phase alternators driven by 200 hp (150 kW)<br />
Robey slow-speed steam engines. AC distribution into parts<br />
<strong>of</strong> Richmond, other adjoining southern suburbs and the<br />
CBD, was by overhead lines with 2000/100 V step-down<br />
transformers for individual customer services.<br />
During the next year (1891) A U Alcock, as the Electric<br />
Light & Motive Power Company (ELMPC), opened the<br />
first stage <strong>of</strong> a planned large central generating station in<br />
Burnley Street, Richmond. It was based on steam engine<br />
driven 80 kW, 2 kV Ganz single-phase alternators, similar<br />
in principle to the NAEC plant at Green Street. Like the<br />
latter, electricity was distributed at 2 kV for street lighting<br />
and private customers in North Richmond, Abbotsford and<br />
Collingwood, as well as some parts <strong>of</strong> the Melbourne CBD.<br />
96 ENERgyNews — Volume 28 No. 4 December 2010<br />
The two companies traded in active competition, particularly<br />
for CBD customers.<br />
In 1891 the Melbourne City Council (MCC) resolved to<br />
establish its own power station and distribution for electric<br />
street lighting in the CBD. The council’s Spencer Street<br />
power station was commissioned in March 1894 with the<br />
first <strong>of</strong> four locally built Austral Otis 300 hp (225 kW)<br />
slow-speed steam engines each driving up to five Thomson<br />
Houston constant-current 3 kV arc lighting dynamos. Each<br />
dynamo supplied an individual series-connected circuit<br />
<strong>of</strong> arc lights and incandescent lamps. Four 75 kw, 2 kV,<br />
single-phase alternators were added in 1895 with overhead<br />
distribution for street lighting and private premises supply<br />
in council areas outside the CBD. 2000/100 V transformers<br />
were installed on poles or at customer premises.<br />
Two views <strong>of</strong> a steam engine driven arc lighting plant<br />
at Spencer Street power station, c1895
By 1899, the MCC decided to become the sole electricity<br />
supplier within its municipal boundaries, which it was<br />
entitled to do under the 1895 Victoria Electric Light & Power<br />
Act. The council duly acquired the assets <strong>of</strong> the former<br />
private electricity supply companies in the Melbourne CBD.<br />
The loss <strong>of</strong> the more lucrative CBD customers hastened<br />
the amalgamation <strong>of</strong> the NAEC and the ELMPC under the<br />
auspices <strong>of</strong> the UK Brush Co. into the Electric Light and<br />
Traction Company, based at the NAEC’s Richmond power<br />
station. In 1908, this became the Melbourne Electric Supply<br />
Company, which was ultimately absorbed into the State<br />
Electricity Commission in 1930.<br />
In 1900, the MCC converted the Melbourne CBD supply to<br />
a 460/230 V three-wire DC system with the aim <strong>of</strong> meeting<br />
demand for motive power applications, particularly electric<br />
lifts. From 1913, central DC generation at Spencer Street was<br />
Hydrogen Association launched<br />
The <strong>Australian</strong> Association for Hydrogen Energy (AAHE) was<br />
<strong>of</strong>ficially launched on 6 September at Ecogen 2010, held at the<br />
Sydney Convention and Exhibition Centre. The launch was<br />
opened by Sydney Lord Mayor, Clover Moore MP, who also<br />
announced the successful bid to host 2015 World Hydrogen<br />
Technologies Convention in Sydney. This premier global expo<br />
for the hydrogen and fuel cell industry is held every two years,<br />
and this will be its first time in Australia. Business Events Sydney<br />
prepared the successful bid in collaboration with the AAHE.<br />
Addressing more than one hundred guests from industry,<br />
government and academia, Ms Moore drew linkages<br />
between developments in the worldwide hydrogen and<br />
fuel cells arena and the program <strong>of</strong> initiatives being rolled<br />
out within the Sustainable Sydney 2030 strategy, under the<br />
leadership <strong>of</strong> Allan Jones MBE, the city’s Chief Development<br />
Drs Ian Plumb, David Rand and Andrew Dicks celebrating the launch <strong>of</strong> the AAHE<br />
Photograph courtesy Great Southern Press<br />
superseded by 6.6 kV, 3-phase turbo-alternators with the DC<br />
then supplied from rotary converter substations. Conversion<br />
<strong>of</strong> the CBD areas to 3-phase AC supply commenced in<br />
1932, however the last DC customer supply was only finally<br />
terminated in 2003.<br />
Melbourne was the first city in Australia to host a public<br />
electricity supply. The MCC was also an early entrant as a<br />
municipal electricity supply undertaking; however, it was<br />
not the first, with schemes in Tamworth followed closely by<br />
Young in New South Wales, both dating from 1888.<br />
* Based on a paper <strong>of</strong> the same title presented at the 3rd<br />
Australasian Engineering Heritage Conference in Dunedin,<br />
New Zealand, on 22–25 November 2009. Access full paper<br />
at http://www.ipenz.org.nz/heritage/, under ‘Publications’,<br />
‘IPENZ and Keynote Presenter Papers’<br />
Officer, Energy and Climate Change. The launch also featured<br />
contributions by Janice Larson, Director <strong>of</strong> Renewable<br />
Energy Development to the state government <strong>of</strong> British<br />
Columbia, Canada, and Jeff Serfass, President, National<br />
Hydrogen Association (NHA) in the United States.<br />
Speaking at the launch, Dr Andrew Dicks, AAHE’s founding<br />
President, noted that the timing <strong>of</strong> the conference in<br />
Sydney is critical, as 2015 is now widely recognised as the<br />
starting point for mass-produced hydrogen fuel cell hybrid<br />
electric vehicles. “The AAHE will be supporting an array <strong>of</strong><br />
demonstration projects within Australia in the lead up to the<br />
2015 conference,” he said. Since the launch, the AAHE has<br />
run its first workshop in Melbourne and is currently engaged<br />
in a strong membership campaign. For more information,<br />
see www.hydrogenaustralia.org<br />
ENERgyNews — Volume 28 No. 4 December 2010 97
Book Review<br />
Hydrogen Energy:<br />
Economic and Social Challenges<br />
By Paul Ekins (ed.), Earthscan, 2010, hardback,<br />
ISBN: 978-18440-768-02, 312 pages, £49.99,<br />
purchase from www.earthscan.co.uk<br />
While an improving attitude<br />
towards climate change has<br />
placed clean energy technology<br />
at the forefront <strong>of</strong> political<br />
and social agendas , the<br />
stumbling block for policy makers, Ekins observes, is that<br />
no ‘silver-bullet’ solution has yet come forth from emerging<br />
clean energy solutions. Successful implementation <strong>of</strong> any<br />
disruptive innovation requires a framework for integration<br />
<strong>of</strong> technical and policy considerations. In this compendium,<br />
Ekins draws together opinion and analysis from an array<br />
<strong>of</strong> peers in the domain <strong>of</strong> social and economic scholarship<br />
to evaluate the technical and social impediments for<br />
the transition to a hydrogen economy in the context <strong>of</strong><br />
established innovation models.<br />
The preliminary chapters provide a solid theoretical<br />
foundation for the ensuing discussion. Prevailing models<br />
<strong>of</strong> the economic forces that drive successful innovation are<br />
compared, including the current and projected competitive<br />
landscapes as well as significant technical and cultural<br />
dimensions necessary for effective implementation <strong>of</strong> the<br />
hydrogen economy. Subsequently, a review <strong>of</strong> current<br />
hydrogen production, storage and end use applications is<br />
presented, comparing in detail and with a high level <strong>of</strong> clarity,<br />
the advantages and disadvantages <strong>of</strong> competing technologies<br />
(including incumbent fossil fuel alternatives) throughout<br />
the fuel lifecycle.<br />
Beyond the thorough, at times dense, introduction the<br />
discourse gathers momentum. Consideration is given to<br />
the drivers for adoption <strong>of</strong> hydrogen technology and the<br />
expectations about its future from the perspectives <strong>of</strong><br />
both the end users (consumers) and private enterprise,<br />
with whom responsibility for developing and capturing the<br />
value <strong>of</strong> hydrogen markets ultimately rests. The roadmap<br />
towards a hydrogen economy is then treated in some detail<br />
by developing scenarios through which hydrogen energy<br />
might establish a market foothold. These scenarios are<br />
expanded upon through economic modelling and analysis<br />
<strong>of</strong> existing demonstration-level projects. An impression<br />
www.aie.org.au<br />
98 ENERgyNews — Volume 28 No. 4 December 2010<br />
<strong>of</strong> the importance <strong>of</strong> a strongly interconnected innovation<br />
network, comprising industry (investment and technical<br />
development), government (policy and investment) and<br />
academia (technical development) is given through an<br />
exploration <strong>of</strong> historical example and emerging strategy.<br />
Specific cases from Canada and the United Kingdom are<br />
drawn out in detail to illustrate the influence <strong>of</strong> local and<br />
global factors as well as the transferability <strong>of</strong> implementation<br />
models between regional and local contexts.<br />
As with any emerging technology, the knowledge gap<br />
concerning safety risks must be considered alongside that<br />
<strong>of</strong> the technical development. The topic has fair coverage<br />
here through a discussion <strong>of</strong> recent research in the area,<br />
highlighting the current uncertainties and establishing<br />
the risk–reward potential <strong>of</strong> hydrogen energy technology<br />
within the greater context <strong>of</strong> current best practice within<br />
the energy industry.<br />
A summary <strong>of</strong> the findings and recommendations regarding<br />
the implementation <strong>of</strong> a hydrogen economy covers the full<br />
spectrum <strong>of</strong> potential hydrogen futures. Technical barriers<br />
and economic impediments are treated alongside strategies<br />
for better engaging the public and endearing hydrogen<br />
technology to significant consumer bases in a range <strong>of</strong><br />
identified markets. The overall scope <strong>of</strong> the discussion is<br />
sufficiently comprehensive to provide the reader with an<br />
informed overview <strong>of</strong> the current situation as well as the<br />
path towards a hydrogen economy. The core theme <strong>of</strong> a<br />
clean energy future having a significantly different sociotechnical<br />
landscape from that which currently exists, and<br />
the implications for hydrogen energy technology, is carried<br />
throughout. Although the density <strong>of</strong> the discussion will<br />
likely discourage the recreational reader, this book would<br />
suit anyone with a genuine interest in emerging energy<br />
technology and/or policy and the desire to dig well below<br />
the surface across a wide catalogue <strong>of</strong> relevant issues.<br />
Dominic Alexander<br />
Postdoctoral Researcher, Chemistry Discipline<br />
Queensland University <strong>of</strong> Technology
Membership Matters<br />
The members’ section <strong>of</strong> ENERgyNews<br />
ENERgyNews welcomes contributions to Membership Matters, including member pr<strong>of</strong>iles, corporate<br />
member pr<strong>of</strong>iles, anecdotes, and advertising. Send ideas and contributions to editor@aie.org.au<br />
New Members<br />
Name Grade Branch<br />
Dr Roberto Aguilera Member Perth<br />
Rajkumari Balarajan Student Canberra<br />
Reydick Balucan Student Sydney<br />
Dr David Blake Fellow Brisbane<br />
Rowan Braham Student Sydney<br />
Dr Michael Brear Fellow Melbourne<br />
George Chen Student Melbourne<br />
Ian Chew Associate Perth<br />
Lindsey Copland Graduate Melbourne<br />
Geneveve Cornejo Graduate Perth<br />
Ashwin Date Student Melbourne<br />
Davood Dehestani Student Sydney<br />
Joseph Delaney Associate Melbourne<br />
Pranoto Effenti Student Melbourne<br />
Armin Fazely Graduate Perth<br />
Monika Fekete Student Melbourne<br />
James Forbes Member Tasmania<br />
David Goy Student Sydney<br />
Andri Halim Student Melbourne<br />
Jeremy Hall Student Sydney<br />
Fathima Hameed Student Melbourne<br />
Richard Hilton Member Melbourne<br />
Jiefeng Hu Student Sydney<br />
Kannan Jegathala Krishnan Graduate Melbourne<br />
Jim Kendal Fellow Perth<br />
Matthew Kerin Graduate Melbourne<br />
Anna Khaghani Student Melbourne<br />
Mohsin Latif Student Newcastle<br />
Algis Lencus Member Sydney<br />
New Corporate Members<br />
Company Name Representatives Branch<br />
Marchment Hill Consulting Sarah Clarke Perth<br />
Ben Connor Perth<br />
Energy Pro (Fiji) Ltd Vineet Vishal Chandra Overseas<br />
Peni Sokia Lesuma Overseas<br />
New Members<br />
Name Grade Branch<br />
Tshewang Lhendup Student Melbourne<br />
Brandon MacDonald Student Melbourne<br />
Tarmianne Marshall Member Perth<br />
Peter McIntyre Fellow Sydney<br />
Punyawee Netiwichairat Student Sydney<br />
Fleur Newman Member Perth<br />
Clare Oborne Member Perth<br />
Moeffaq Oreijah Student Melbourne<br />
Christopher Parkin Student Perth<br />
Mohammad Ramezanianpour Student Sydney<br />
Benjamin Reay Member Perth<br />
Shaun Rimos Student Melbourne<br />
Chiranjib Saha Student Melbourne<br />
Saeed Seif Mohammadi Student Melbourne<br />
Bahman Shabani Graduate Melbourne<br />
Ann Shaw Rungie Associate South Australia<br />
Abhijit Shrotri Student Brisbane<br />
Aaron Zhifan Song Student Melbourne<br />
Erin Spiden Student Melbourne<br />
Matthew Springer Graduate Melbourne<br />
Shi Su Fellow Brisbane<br />
Dirgarini Julia Subagyono Student Melbourne<br />
Hendy Thee Student Melbourne<br />
Lavanya Varadharajan Student Melbourne<br />
Gregory Veitch Fellow South Australia<br />
Hasitha Weerasinghe Student Melbourne<br />
Clare Wood Member Perth<br />
Yusli Yaakob Student Melbourne<br />
Company Name Representatives Branch<br />
AMOG Consulting Dr Hayden Marcollo Melbourne<br />
Dr Andrew Potts Melbourne<br />
West Coast Energy Pty Ltd Wally Huia Perth<br />
Jason Pugh Perth<br />
Premier Solar Australia Martin Cobb Melbourne<br />
Daniel Cobb Melbourne<br />
ENERgyNews — Volume 28 No. 4 December 2010 99
Around the Branches<br />
Brisbane<br />
• Mark Davis, Director, Commercial Building Disclosure,<br />
<strong>Australian</strong> Government Department <strong>of</strong> Climate Change<br />
and Energy Efficiency, presented on “Commercial Building<br />
Disclosure” on 16 September 2010.<br />
Canberra<br />
• Perry Sioshansi, President, Menlo Energy Economics, and<br />
Editor/Publisher, EEnergy Informer, San Francisco, California,<br />
presented “US Energy and Climate Policy and Implications<br />
for Australia and the World” on 24 September 2010.<br />
Melbourne<br />
• Dr Graeme Bethune, CEO, EnergyQuest, presented<br />
“<strong>Australian</strong> LNG Outlook: Opportunities and challenges”<br />
on 25 August 2010.<br />
• Melbourne Branch Young Energy Pr<strong>of</strong>essionals organised<br />
the ‘youth’ stream at the All-Energy Exhibition and<br />
Conference on 6–7 October 2010.<br />
• AIE Melbourne Branch hosted its Postgraduate Student<br />
Energy Awards at the All-Energy Exhibition and<br />
Conference on 6–7 October 2010.<br />
• In association with Ernst & Young, the AIE Melbourne<br />
Branch AGM on 24 November 2010 included presentations<br />
by Dr Adrian Panow, Director <strong>of</strong> Energy Investment,<br />
Victorian Government, and Damien Moyse, Energy<br />
<strong>Project</strong>s and Policy Manager, Alternative Technology<br />
Association, on “What’s hot in Victoria – energy policy,<br />
smart meters, large solar, and more”.<br />
Perth<br />
• AIE Perth Branch, in association with the Government <strong>of</strong><br />
Western Australia Office <strong>of</strong> Energy, hosted the 10th Energy<br />
in Western Australia Conference on 21–22 September<br />
2010.<br />
• Perth Young Energy Pr<strong>of</strong>essionals hosted a panel<br />
discussion <strong>of</strong> the topic “The Future <strong>of</strong> Energy in WA”,<br />
featuring the Hon. Peter Collier, Minister for Energy,<br />
Training and Workforce Development, Government <strong>of</strong><br />
Western Australia; Doug Aberle, Managing Director,<br />
Western Power; and David Parker, Government & Public<br />
Affairs Manager, Apache Energy, on 29 September 2010.<br />
www.aie.org.au<br />
100 ENERgyNews — Volume 28 No. 4 December 2010<br />
South Australia<br />
• Mark Pitkin, Beach Energy, presented “Old Tricks Applied<br />
a New Way: Developing unconventional resources” on<br />
9 September 2010.<br />
• South Australia Young Energy Pr<strong>of</strong>essionals hosted<br />
the third session <strong>of</strong> their Winter Learning Series, with<br />
Tanya Denning, Senior Associate, Blake Dawson,<br />
addressing “Electricity Market Fundamentals” on<br />
20 September 2010.<br />
• Tanya Denning, Senior Associate, Blake Dawson,<br />
presented “Navigating the Short-Term Trading Market<br />
for Natural Gas” on 14 October 2010.<br />
• AIE South Australia Branch hosted the AIE National<br />
Conference, Australia’s Energy – Next Generation, on<br />
14–16 November 2010, including the AIE national AGM<br />
on 15 November 2010.<br />
• South Australia Young Energy Pr<strong>of</strong>essionals celebrated<br />
the festive season with a Christmas ‘quiztacular’, Sparks<br />
and Specks, on 2 December 2010.<br />
Sydney<br />
• Dr Adi Paterson, CEO, ANSTO, presented “Energy<br />
Options for Developed Countries: Making choices” on<br />
31 August 2010.<br />
• AIE Sydney Branch held the 2010 NSW/ACT Postgraduate<br />
Student Energy Awards, including a presentation<br />
by Greg Everett, Chief Executive, Delta Electricity on<br />
12 October 2010.<br />
• AIE Sydney Branch held a half-day symposium on<br />
the topic, “NSW Gas Future 2010: Big changes ahead?”<br />
on 18 October 2010.<br />
• Graeme Cuthbert, Head <strong>of</strong> Energy Security, United<br />
Kingdom Department <strong>of</strong> Energy and Climate Change,<br />
presented “Energy Efficiency in the UK” at the AIE Sydney<br />
Branch AGM on 1 November 2010.<br />
• Sydney YEPs compared three carbon reduction schemes<br />
that are currently under consideration by the <strong>Australian</strong><br />
Government in a World Café format on 1 December 2010.
‘Not So’ Young Energy Pr<strong>of</strong>essionals<br />
As our YEP groups grow and prosper, we thought it timely<br />
to make contact with a few <strong>of</strong> our ‘not so’ young energy<br />
pr<strong>of</strong>essionals. The AIE membership includes at least three*<br />
in their energetic 90s, all residing in New South Wales – Max<br />
Woods (aged 95), and Ralph Goode and Frank Rushworth (both<br />
aged 90). ENERgyNews asked these gentlemen about their<br />
work in the energy sector and their involvement with the AIE.<br />
Max Woods<br />
with his dog Gabbi<br />
Energetic farmer<br />
Farmer and grazier Max Woods FAIE has been a lifelong<br />
campaigner for sustainable practices in agriculture,<br />
including energy efficiency pertaining to land use.<br />
As recently as 2006, Max appeared before a House <strong>of</strong><br />
Representatives Standing Committee to argue the need to<br />
reinstate specialist soil conservation services to promote<br />
and support soil conservation practices. Although retired,<br />
Max still keeps his finger on the pulse. He is an avid reader<br />
<strong>of</strong> ENERgyNews, which he views projected on a large<br />
screen now that he is legally blind. “Reading the journal<br />
keeps me in touch with the energy situation, he said. “Energy<br />
is vitally important to society and we need to understand it<br />
and appreciate it. I take a particular interest in proposals to<br />
use agricultural resources such as grain and sugar to make<br />
fuel. I think we should steer clear <strong>of</strong> this idea. I have always<br />
been <strong>of</strong> the opinion that food is the most important use for<br />
our agricultural land.” Our chat with Max has prompted<br />
ENERgyNews to include the food versus fuel debate in<br />
one <strong>of</strong> the issues <strong>of</strong> the journal in 2011.<br />
Ralph Goode<br />
celebrating his 90th birthday<br />
Founding member<br />
With member number 563, H R (Ralph) Goode FAIE is one<br />
<strong>of</strong> the <strong>Institute</strong>’s founding members. That means he was<br />
a member <strong>of</strong> the <strong>Institute</strong> <strong>of</strong> Fuel when the membership<br />
elected to form an <strong>Australian</strong> association independent <strong>of</strong> its<br />
British parent in 1978. “There was great debate concerning<br />
supply and price <strong>of</strong> fuels at that time,” Ralph recalled. “I<br />
was then an engineer with Shell Coal and travelled around<br />
the world talking people into converting from oil to coal<br />
on the basis <strong>of</strong> interfuel economics.” Ralph joined Shell in<br />
1946 when he came out <strong>of</strong> the army and stayed with the<br />
company until his retirement in 1980. In the early days <strong>of</strong><br />
the <strong>Institute</strong>, Ralph was a regular attendee at branch events<br />
in Sydney. He was Sydney Branch Chair on two occasions<br />
and Hon. Secretary for many years. “I can’t get to meetings<br />
these days, but I like to keep in touch with what’s happening<br />
in energy through the journal,” he said. “I’d like to see greater<br />
debate over the technical aspects <strong>of</strong> climate.” That sounds<br />
like another idea for ENERgyNews in 2011 – the science<br />
and technology <strong>of</strong> climate change.<br />
Frank Rushworth<br />
in his role as Chair,<br />
Petroleum Information<br />
Bureau, c. 1970s<br />
Senior oil man<br />
Albert (Frank) Rushworth MAIE joined the <strong>Institute</strong> in 2000<br />
when it merged with the <strong>Australian</strong> <strong>Institute</strong> <strong>of</strong> Petroleum<br />
(AIP). The AIP had been formed in 1976 to promote effective<br />
dialogue between the oil industry, government and the<br />
community. It replaced a number <strong>of</strong> other organisations<br />
such as the Petroleum Information Bureau (PIB) that had<br />
been operating in Australia since in the 1950s. In his role<br />
as a director with major oil company Total, Frank was then<br />
Chairman <strong>of</strong> the PIB. When Frank retired from the oil<br />
industry in 1990 he retained membership <strong>of</strong> the AIP. “The<br />
petroleum industry was changing and the needs <strong>of</strong> the major<br />
oil companies were changing with it,” recalled Frank. “We<br />
were very active in education and publications through the<br />
1970s and 80s; but, there was less need for such a pr<strong>of</strong>ile in<br />
the community by the 1990s.” Notwithstanding a long career<br />
in the oil industry, Frank has been very interested in the<br />
journal articles on wave energy. “If there is a working model<br />
<strong>of</strong> wave energy being converted to generate electricity, why<br />
are we investing millions in coal-fired power generation in<br />
New South Wales?” he asked. “On the topic <strong>of</strong> petroleum, I<br />
applaud the shift to diesel (from petrol) in vehicles.” Sounds<br />
like another good topic for ENERgyNews in 2011.<br />
* There may be more, but not all dates <strong>of</strong> birth are recorded<br />
on the AIE database.<br />
ENERgyNews — Volume 28 No. 4 December 2010 101
Corporate Member Pr<strong>of</strong>ile<br />
Energy Pro (Fiji) ltd<br />
Energy Pro started operating in Fiji in February 2010, and is the<br />
first company in Fiji whose primary service is energy auditing,<br />
monitoring and conservation. As the leading provider <strong>of</strong><br />
energy management and efficiency services, Energy Pro<br />
measures energy consumption, then provides a comprehensive<br />
solution to minimise consumption through energy-efficient<br />
technologies, auditing and monitoring equipment, better<br />
management <strong>of</strong> existing infrastructure, and a range <strong>of</strong> other<br />
initiatives. These practical engineering solutions are <strong>of</strong>fered in<br />
Fiji and the neighbouring Pacific Island countries. The range<br />
<strong>of</strong> services includes a complete energy audit, a power quality<br />
audit, mechanical design/redesign and thermal imaging.<br />
Managing Director, Vineet Chandra, has five years’ experience<br />
in the HVAC (heating, ventilation and air-conditioning)<br />
industry, and founder, Peni Lesuma, has more than 40 years’<br />
experience in the HVAC industry and has also worked in<br />
New Zealand and other Pacific Island countries.<br />
ENERgyNews asked Mr Chandra why Energy Pro<br />
was formed in Fiji. “Energy conservation is becoming<br />
increasingly important in Fiji and nearby Pacific countries,”<br />
he said. “However, the level <strong>of</strong> awareness is low and<br />
responsible organisations are not doing enough to support<br />
energy management. An incentive has to be given to clients<br />
to gain interest.”<br />
In Fiji, the main primary sources <strong>of</strong> energy in the dry season<br />
are diesel fuel (~70%) and hydro (~30%). Other renewable<br />
sources <strong>of</strong> energy are negligible.<br />
“Because companies are hesitant to spend money to reduce<br />
their energy consumption, we emphasise the commercial<br />
benefits,” said Mr Chandra. “We demonstrate the benefits that<br />
an energy audit can reveal, such as reducing their energy costs<br />
by 10–30%. With the commercial tariff at around 40 Fiji cents<br />
per kWh (A$0.20/kWh) this can be a substantial saving.”<br />
The implementation <strong>of</strong> renewable energy technologies is<br />
also being supported by the World Bank, which supports<br />
companies and individuals in Fiji by providing 50% <strong>of</strong> the<br />
security deposit to secure bank loans for renewable energy<br />
projects.<br />
Energy Pro’s team <strong>of</strong> fully qualified mechanical, electrical,<br />
and air-conditioning and refrigeration engineers provide<br />
102 ENERgyNews — Volume 28 No. 4 December 2010<br />
Vineet Chandra undertaking thermal imaging for an Energy<br />
Pro (Fiji) client<br />
services in:<br />
• energy auditing<br />
• power quality auditing<br />
• mechanical/HVAC design<br />
• thermal imaging.<br />
For example, Energy Pro’s thermal imaging service provides<br />
peace <strong>of</strong> mind over the risks associated with electrical and<br />
mechanical equipment malfunctions.<br />
“We can carry out our electrical and mechanical<br />
thermography inspections without any downtime,” said<br />
Mr Chandra. “The report identifies all risks and diagnoses<br />
the anomalies, and presents recommendations. If significant<br />
heat energy losses are identified, these and their costs are<br />
calculated. Malfunctions not only increase energy costs,<br />
but they are potential hazards for customers, employees<br />
and the community.”<br />
Although Energy Pro Fiji is linked to prominent New Zealand<br />
company, Energy NZ Ltd (www.energynz.com) to deliver<br />
services <strong>of</strong> an international standard, most <strong>of</strong> the electrical<br />
standards that apply in Fiji are <strong>of</strong> <strong>Australian</strong> standards. “That is<br />
why Energy Pro Fiji joined the <strong>Australian</strong> <strong>Institute</strong> <strong>of</strong> Energy,”<br />
said Mr Chandra. “We wanted to be involved with an <strong>Australian</strong><br />
organisation that is independent and pr<strong>of</strong>essional.”<br />
For more information on Energy Pro (Fiji), see<br />
www.energypro.com.fj
PRESIDENT<br />
Tony Vassallo (Sydney Branch)<br />
president@aie.org.au<br />
VICE-PRESIDENT<br />
Murray Meaton (Perth Branch)<br />
HON. SECRETARY<br />
Paul McGregor (Sydney Branch)<br />
secretary@aie.org.au<br />
HON. TREASURER<br />
Glen Currie (Melbourne Branch)<br />
treasurer@aie.org.au<br />
WEB MASTER<br />
Tony Forster (Melbourne Branch)<br />
webmaster@aie.org.au<br />
Brisbane<br />
Leigh Morpeth<br />
brisbane@aie.org.au<br />
Canberra<br />
Ross Calvert<br />
canberra@aie.org.au<br />
Melbourne<br />
Glenne Drover<br />
melb@aie.org.au<br />
MEMBERSHIP<br />
Colin Paulson (Sydney Branch)<br />
aie@aie.org.au<br />
David Allardice (Melbourne Branch)<br />
Michael Cochran (South Australia Branch)<br />
Paul Riordan (South Australia Branch)<br />
Brian Truman (Perth Branch)<br />
BRANCH REPRESENTATIVES<br />
Patrick Burke (Tasmania Branch)<br />
Andrew Dicks (Brisbane Branch)<br />
James Giblin (Newcastle Branch)<br />
Anny Joseph (Canberra Branch; co-opted July 2010)<br />
Newcastle<br />
Behdad Moghtaderi<br />
newcastle@aie.org.au<br />
Perth<br />
Rani Thulasy<br />
perth@aie.org.au<br />
South Australia<br />
Graeme Atwell<br />
adel@aie.org.au<br />
AIE Board 2010<br />
EDITOR<br />
Joy Claridge<br />
editor@aie.org.au<br />
SECRETARIAT<br />
Candice Pribil<br />
(PAMS)<br />
aie@aie.org.au<br />
Tel: 1800 629 945<br />
Fax: (03) 9898 0249<br />
Branch Secretaries<br />
Sydney<br />
Gwen Cant (Secretariat)<br />
syd@aie.org.au<br />
Tasmania<br />
Melissa Jackson<br />
tasmania@aie.org.au<br />
Vale gilbert Tippett MAIE 1910–2010<br />
The AIE lost its ‘oldest’ member, when Melbourne<br />
Branch Member Gilbert Tippett passed away on<br />
12 September, just three months before his 100th<br />
birthday. Until as recently as last year, he was a<br />
regular attendee at branch events and as his sonin-law<br />
Peter Lothian said, “He lived an extremely<br />
full and positive life.”<br />
Recollections by his daughter Marg Lothian<br />
reveal a life-long interest in energy, and that he<br />
was a man well ahead <strong>of</strong> his time. During WWII,<br />
during petrol rationing, not wanting to sit at<br />
home Gilbert ran his car (when it would go) on<br />
carbon monoxide that he produced himself! In<br />
1962, he installed a solar hot water system on the<br />
Gilbert Tippett c. 1980s<br />
Obituary<br />
ro<strong>of</strong> <strong>of</strong> the holiday house he built at Inverloch,<br />
much to the bemusement <strong>of</strong> the local plumbers.<br />
In the 1980s, with his niece Elizabeth Honey,<br />
he co-authored two energy books for children.<br />
More recently, he argued for the use <strong>of</strong> nuclear<br />
energy in electricity generation. “This guaranteed<br />
a lively discussion over Sunday dinner,” said<br />
Marg. “He retained ‘a brain worth playing in’<br />
right up to the last days <strong>of</strong> his life, and I am sure<br />
that contact with AIE Members contributed to<br />
his mental agility.”<br />
Gilbert joined the <strong>Institute</strong> in 2003 and was<br />
granted ‘retired’ status in 2008. He will be sadly<br />
missed by his AIE colleagues and friends.<br />
ENERgyNews — Volume 28 No. 4 December 2010 103
Corporate Member Directory<br />
WA Gas Networks owns<br />
and operates the majority<br />
<strong>of</strong> the reticulated gas<br />
infrastructure in Western<br />
Australia, transporting gas<br />
for energy retailers.<br />
In 2009, WA Gas Networks<br />
reliably transported over<br />
28 petajoules <strong>of</strong> gas through<br />
approximately 12,000 km<br />
<strong>of</strong> gas mains and associated<br />
infrastructure, and<br />
delivered gas to over<br />
620,000 consumers.<br />
www.wagasnetworks.com.au<br />
Aurecon provides engineering,<br />
management and specialist<br />
technical services for public and<br />
private sector clients globally.<br />
Aurecon’s energy team delivers<br />
effective, tailored solutions<br />
for clients across the power<br />
generation, transmission and<br />
distribution, and renewable<br />
energy sectors.<br />
Drawing on the talents<br />
<strong>of</strong> a global team, Aurecon<br />
has expertise in all areas <strong>of</strong> the<br />
energy sector, including power<br />
systems and power generation<br />
engineering; industrial and<br />
process engineering; and energy<br />
advisory and asset management<br />
consulting services.<br />
www.aurecongroup.com<br />
104 ENERgyNews — Volume 28 No. 4 December 2010<br />
Energeia is a pr<strong>of</strong>essional<br />
services firm <strong>of</strong> highly<br />
credentialed energy<br />
specialists dedicated to<br />
achieving excellence for<br />
our clients in their pursuit<br />
<strong>of</strong> the exceptional.<br />
We <strong>of</strong>fer advisory services<br />
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products covering<br />
retailing, demand<br />
management, electric<br />
vehicles, microgeneration,<br />
renewables, energy<br />
storage and smart grid.<br />
www.energeia.net.au<br />
Support<br />
the<br />
companies<br />
that<br />
support<br />
the AIE<br />
mySmart CTI helps<br />
create the most<br />
energy-efficient<br />
environments<br />
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latest technology<br />
and highly trained<br />
consultants and<br />
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mySmart CTI is able<br />
to optimise buildings<br />
and outdoor<br />
environments<br />
so that they use<br />
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reducing operating<br />
costs. As a result,<br />
businesses win,<br />
and so do their<br />
employees and the<br />
environment.<br />
www.mysmart.com.au<br />
Electricity, Gas and Carbon<br />
CQ Partners Pty Ltd provides<br />
corporate advice and services,<br />
specialising in the <strong>Australian</strong><br />
and international energy and<br />
carbon markets. The partners<br />
<strong>of</strong> the company each have<br />
over 10 years <strong>of</strong> experience in<br />
energy and financial markets.<br />
CQ Partners is committed to<br />
providing commercial solutions<br />
in the areas <strong>of</strong> electricity, gas,<br />
carbon, fuel and greenhouse<br />
gas abatement.<br />
www.cqpartners.com.au<br />
Ph: 08 8464 0300
Corporate Member Directory<br />
ENERGEX<br />
A Queensland Government<br />
owned corporation that builds,<br />
owns, operates and maintains<br />
the electricity distribution<br />
network in South East<br />
Queensland.<br />
ENERGEX is an active<br />
participant in a program<br />
<strong>of</strong> energy conservation<br />
and demand management<br />
initiatives that will deliver a<br />
significant level <strong>of</strong> demand<br />
reduction to both the<br />
residential and the commercial<br />
and industrial sectors within<br />
its distribution area.<br />
(07) 3407 4329<br />
www.energex.com.au<br />
Landfill Gas and Power Pty Ltd<br />
Pioneered landfill gas power<br />
generation in Western Australia<br />
in 1993. It has since developed<br />
LGP Clean Technology.com<br />
— a unique method<br />
<strong>of</strong> landfill gas extraction and gas<br />
pre-treatment and processing<br />
that delivers higher efficiencies.<br />
LGP construct and install gas<br />
extraction well-fields, gas<br />
pre-treatment plants, gas flaring<br />
equipment, power station<br />
modules and grid connections;<br />
as well as <strong>of</strong>fering consultancy<br />
services in all aspects <strong>of</strong> landfill<br />
gas management.<br />
www.landfillgas.com.au<br />
Specialist Commercial<br />
Lawyers<br />
www.finlaysons.com.au<br />
www.AutonomousEnergy.com<br />
www.energypro.com.fj<br />
Support the<br />
companies<br />
that support<br />
the AIE<br />
www.lavanlegal.com.au<br />
www.sustainability.<br />
vic.gov.au<br />
Company members,<br />
place your<br />
listing here<br />
Include your<br />
company’s name<br />
and logo, as well as<br />
up to 50 words <strong>of</strong><br />
promotional text.<br />
Send an email to<br />
editor@aie.org.au
Forthcoming AIE Events<br />
For all forthcoming AIE events, see http://www.aie.org.au<br />
Calendar<br />
If your branch has organised an event in 2011, send details to editor@aie.org.au to promote the event in the ENERgyNews.<br />
other Events 2011: Australasia<br />
8–10 February in Sydney Future <strong>of</strong> Lighting http://www.future<strong>of</strong>lighting.com.au<br />
14–15 February in Sydney NSW Energy Reform & Outlook Summit<br />
http://www.informa.com.au/nswenergyreform<br />
16–17 February in Melbourne Future <strong>of</strong> Lighting Summit http://www.future<strong>of</strong>lighting.com.au<br />
21–23 February in Auckland Power & Electricity World NZ http://www.terrapinn.com<br />
22–23 February in Melbourne Solar Power Australia 2011 http://www.solarpoweraus.com.au<br />
23–25 February in Perth AOG Exhibition & Conference http://www.aogexpo.com.au<br />
24–25 February in Brisbane 3rd Annual Queensland LNG Development http://www.iir.com.au/qldlng<br />
28 February–1 March in Brisbane CTL & Coal Gasification Annual Conference 2011 www.informa.com.au<br />
28 February–2 March in Brisbane 4th Annual Queensland Energy Conference http://www.tonkincorporation.com<br />
28 February–2 March in Sydney Clean Energy Australia 2011 http://www.terrapinn.com<br />
1–2 March in Brisbane Coal Seam Methane World Australia 2011 http://www.terrapinn.com<br />
1–2 March in Sydney National SCADA Conference 2011 http://www.scada-conference.com.au<br />
15 March in Auckland Energy Efficient Facilities Management http://www.conferenz.co.nz<br />
23–26 March in Perth Energising South East Asia Conference & Exhibition http://www.energisingsea.com.au<br />
28–30 March in Brisbane 9th Annual National CSG Summit http://www.iir.com.au/csm<br />
29 March in Sydney Retr<strong>of</strong>itting for Energy Efficiency http://www.retro-fitting.com.au<br />
29 March in Brisbane Coal Processing Optimisation 2011 http://www.coalprocessing.com.au<br />
29–30 March in Brisbane Shale Gas Briefing 2011 http://www.iir.com.au/shale<br />
30–31 March in Brisbane Queensland Gas Assets & Pipeline Infrastructure http://www.iir.com.au/qgac<br />
30–31 March in Traralgon 2nd Annual Victorian Coal & Energy Conference<br />
http://www.informa.com.au/VICcoalandenergy<br />
4–8 April in Cairns Greenhouse 2011 http://www.greenhouse2011.com/<br />
5–7 April in Melbourne <strong>Australian</strong> Carbon Trading Expo 2011 http://www.carbonexpo.com.au/<br />
11–12 May in Brisbane 4th Surat Basin Coal & Energy Conference http://www.informa.com.au<br />
21–25 May in Broken Hill <strong>Australian</strong> Resources and Energy Conference http://www.symposium.net.au<br />
7–10 June in Melbourne Smart Electricity World Australia 2011 http://www.terrapinn.com<br />
9–10 June in New Plymouth, NZ ENEX – New Zealand’s Oil & Gas Event http://www.enex.co.nz<br />
12–13 October in Melbourne All-Energy Australia 2011 http://www.all-energy.com.au<br />
Please note that the events listed here are based on information provided by event organisers. The AIE does not necessarily<br />
endorse the views <strong>of</strong> the speakers. The events are brought to the attention <strong>of</strong> members as potentially contributing to discussion<br />
on relevant energy issues. If you know <strong>of</strong> any conferences or other major events in our region that would be <strong>of</strong> interest to AIE<br />
members and will be held in 2011, please email date, location, title and web link to editor@aie.org.au<br />
other Events 2011: International<br />
For global energy events, see the following websites:<br />
http://www.conferencealerts.com/energy.htm http://www.ieee.org<br />
http://www.energyiq.co.uk/Energy.aspx http://www.pmaconference.com/<br />
http://www.eia.doe.gov/calendar/meetings.htm http://www.bvents.com<br />
http://www.econference.com.au http://www.expopromoter.com