Sunday, November 30, 2008

President-elect proposed economic suicide for US

Christopher Booker article in today's Sunday Telegraph (UK)

If the holder of the most powerful office in the world proposed a policy guaranteed to inflict untold damage on his own country and many others, on the basis of claims so demonstrably fallacious that they amount to a string of self-deluding lies, we might well be concerned. The relevance of this is not to President Bush, as some might imagine, but to a recent policy statement by President-elect Obama.


Tomorrow, delegates from 190 countries will meet in Poznan, Poland, to pave the way for next year's UN conference in Copenhagen at which the world will agree a successor to the Kyoto Protocol on climate change. They will see a video of Mr Obama, in only his second major policy commitment, pledging that America is now about to play the leading role in the fight to "save the planet" from global warming.

Mr Obama begins by saying that "the science is beyond dispute and the facts are clear". "Sea levels," he claims, "are rising, coastlines are shrinking, we've seen record drought, spreading famine and storms that are growing stronger with each passing hurricane season."

Far from the science being "beyond dispute", we can only deduce from this that Mr Obama has believed all he was told by Al Gore's wondrously batty film An Inconvenient Truth without bothering to check the facts. Each of these four statements is so wildly at odds with the truth that on this score alone we should be seriously worried.

It is true that average sea levels are modestly rising, but no faster than they have been doing for three centuries. Gore's film may predict a rise this century of 20 feet, but even the UN's International Panel on Climate Change only predicts a rise of between four and 17 inches. The main focus of alarm here has been the fate of low-lying coral islands such as the Maldives and Tuvalu.

Around each of these tiny countries, according to the international Commission on Sea Level Changes and other studies, sea levels in recent decades have actually fallen. The Indian Ocean was higher between 1900 and 1970 than it has been since. Satellite measurements show that since 1993 the sea level around Tuvalu has gone down by four inches.

Coastlines are not "shrinking" except where land is subsiding, as on the east coast of England, where it has been doing so for thousands of years. Gore became particularly muddled by this, pointing to how many times the Thames Barrier has had to be closed in recent years, unaware that this was more often to keep river water in during droughts than to stop the sea coming in.

Far from global warming having increased the number of droughts, the very opposite is the case. The most comprehensive study (Narisma et al, 2007) showed that, of the 20th century's 30 major drought episodes, 22 were in the first six decades, with only five between 1961 and 1980. The most recent two decades produced just three.

Mr Obama has again been taken in over hurricanes. Despite a recent press release from the National Oceanic and Atmospheric Administration claiming that 2008's North Atlantic hurricane season "set records", even its own release later admits that it only tied as "the fifth most active" since 1944. NOAA's own graphs show hurricane activity higher in the 1950s than recently. A recent Florida State University study of tropical cyclone activity across the world (see the Watts Up With That? website) shows a steady reduction over the past four years.

Alarming though it may be that the next US President should have fallen for all this claptrap, much more worrying is what he proposes to do on the basis of such grotesque misinformation. For a start he plans to introduce a "federal cap and trade system", a massive "carbon tax", designed to reduce America's CO2 emissions "to their 1990 levels by 2020 and reduce them an additional 80 per cent by 2050". Such a target, which would put America ahead of any other country in the world, could only be achieved by closing down a large part of the US economy.

Mr Obama floats off still further from reality when he proposes spending $15 billion a year to encourage "clean energy" sources, such as thousands more wind turbines. He is clearly unaware that wind energy is so hopelessly ineffective that the 10,000 turbines America already has, representing "18 gigawatts of installed capacity", only generate 4.5GW of power, less than that supplied by a single giant coal-fired power station.

He talks blithely of allowing only "clean" coal-fired power plants, using "carbon capture" - burying the CO2 in holes in the ground - which would double the price of electricity, but the technology for which hasn't even yet been developed. He then babbles on about "generating five million new green jobs". This will presumably consist of hiring millions of Americans to generate power by running around on treadmills, to replace all those "dirty" coal-fired power stations which currently supply the US with half its electricity.

If this sounds like an elaborate economic suicide note, for what is still the earth's richest nation, it is still not enough for many environmentalists. Positively foaming at the mouth in The Guardian last week, George Monbiot claimed that the plight of the planet is now so grave that even "sensible programmes of the kind Obama proposes are now irrelevant". The only way to avert the "collapse of human civilisation", according to the Great Moonbat, would be "the complete decarbonisation of the global economy soon after 2050".

For 300 years science helped to turn Western civilisation into the richest and most comfortable the world has ever seen. Now it seems we have suddenly been plunged into a new age of superstition, where scientific evidence no longer counts for anything. The fact that America will soon be ruled by a man wholly under the spell of this post-scientific hysteria may leave us in wondering despair.

Wednesday, November 26, 2008

Who could object to wind power?

On Toronto's waterfront stands a mighty wind turbine, its blades rotating lazily in the breeze (at least sometimes). It's a monument to good intentions and civic virtue. The Mayor loves it. The Premier loves it. All governments love wind power, because it makes them look so green. David Suzuki, the patron saint of environmentalism, compares wind turbines to medieval cathedrals - the highest expressions of human achievement. Wind is clean, sustainable, renewable, free. Who could possibly object?

The citizens. Last night in Toronto, hundreds of anxious folks jammed a meeting called to discuss plans for a massive wind farm along the shore of Lake Ontario. They fear the 90-metre turbines will chop up birds, disrupt migration routes, destroy views, lower property values, even make them sick.

NIMBYs? No doubt. But they have a lot of company. Across Canada, Britain and Europe, a growing protest movement is arguing that wind farms are no good for the environment.

Here's another reason not to like them. Wind power can't survive without massive subsidies, courtesy of you and me. "If these hidden subsidies were taken away, there would not be a single wind turbine built in Britain," says David Bellamy, a well-known environmentalist who has been tramping the Scottish countryside to oppose a massive wind project there.

Subsidies might be okay if wind could help replace conventional energy one day. It can't. "If the whole of Wales was covered with wind turbines, the nation would generate only a sixth of the U.K.'s energy needs," says Prof. David MacKay, a physicist at Cambridge. He's all in favour of clean, renewable energy. But he's done the math.

The biggest problem with wind is that it doesn't always blow. There are lots of days when Toronto's monument to civic virtue couldn't even power my toaster. Inconveniently, these times of low production tend to coincide with times of high demand. So no matter how many turbines you put up, you always need backup power. Usually that means fossil fuel, or, in Ontario's case, nuclear.

The biggest advertisements for wind power are Germany and Denmark. Germany has more wind turbines than any other country in the world, and Chancellor Angela Merkel has draped herself in green. But wind energy can't replace conventional power there either, so Germany is also building dozens of new coal-fired power plants. Denmark, with the largest offshore wind farm in the world, brags that 20 per cent of the electricity it generates comes from wind. But more than half its wind power is exported, because that's the only way the system can work.

Here at home, wind companies have been scrambling to get their share of $1.5-billion in federal subsidies for clean energy. On top of that, they get a premium when they sell the power. Ontario pays them 11 to 14 cents per kilowatt hour. Conventional energy goes for about half that price.

"Ontario is turning to wind turbines to help create jobs and power a green energy future," brags a government press release. But wind companies are chasing another green. The biggest wind project in the world, on the Thames Estuary, nearly collapsed last spring when a major backer, Shell, pulled out. Shell said the "incentives" were better in the United States.

Fortunately, a lot of wind companies won't survive the recession. One big Canadian firm, EarthFirst, is under court protection. Wind companies need a huge amount of credit, which has dried up. Expensive wind power makes a lot less sense with oil back around $50. And the global slump will do more to cut greenhouse gas emissions than all the wind turbines and solar panels David Suzuki can dream of.

When will we stop pouring billions into wind? I have no idea. Politicians really love their turbines. Meantime, that soft whooshing sound you hear is your friendly green government, vacuuming money out of your pockets.

Sunday, November 16, 2008

Economic turmoil may slow wind projects

Independent wind producers are facing big hikes in debt costs, raising doubt on whether ambitious construction goals will be met over the next few years, say financing experts.

Chris Gifford, a vice-president with Allied Irish Banks in Toronto, says worrisome signs for the industry came recently when EarthFirst Canada Inc. — the proponent of a major wind farm in British Columbia — declared it was seeking creditor protection.

"I think it’s a warning sign, what happened to them (EarthFirst) could happen to other people," he said in a telephone interview.

The German bank WestLB AG has said it intends to "enforce security" on its $131-million loan to the Calgary-based wind firm.

Meanwhile, a news release issued Thursday by EarthFirst says attempts to find fresh financing had been "severely hindered by the unprecedented crisis in the global financial markets."

In addition to the Dokie 1 wind farm in British Columbia, and the smaller Nuttby wind project in Nova Scotia, the company also has permits for further projects in B.C. and Ontario.

EarthFirst was unavailable to provide an updated comment on the projects, but has said in news releases it has retained its staff and is continuing to work on them.

Scott Urquhart, the vice-president of corporate finance at Jennings Capital in Halifax, says the problem facing Canada’s independent wind producers is they are often heavily reliant on debt, raising between 70 to 80 per cent of their financing by borrowing.

He has assisted small Atlantic Canadian energy and mining firms to find lenders and investors in the past few years. However, he said when he was recently approached by two wind firms in Nova Scotia, he advised them to wait out the storm.

"Some of the banks are . . . not doing deals at all, and it’s going to be into the new year before you can talk to the banks about doing some of these projects," he said.

Urquhart said last year banks and life insurance companies were interested in financing the projects at rates in the range of 6.5 per cent. But he estimates the interest costs are now over eight per cent, and the lenders are offering shorter terms for smaller amounts of money.

The challenges are unwelcome news in provinces where wind is viewed as a key source of future energy.

For instance, in Nova Scotia, Emera subsidiary Nova Scotia Power Inc. had contracted for 247 megawatts of capacity — enough power for 87,000 homes — which when added to its existing wind farms would be 10 per cent of the province’s electricity by 2013.

The utility is required to hit roughly half that amount of power by 2010 as part of the province’s efforts to reduce greenhouse gas emissions.

Margaret Murphy, a spokeswoman for Nova Scotia Power, said the utility remains optimistic it will meet its minimum goals.

Thursday, November 6, 2008

Despite changes, wind farm views remain mixed

By Steve Goodwin, Pictou Advocate

Mike Magnus says he hopes the latest discussion regarding the adjustments his company has made to the proposed wind turbine project in eastern Pictou County will allay local concerns and allow the major project to proceed.

“We’ve taken all the comments to heart and have engaged folks to look at the changes,” the chief executive officer of Shear Wind Inc. said Saturday, following the company’s latest information session that attracted more than 100 people to the Lismore Community Hall. “Our concern is to be a good neighbour.”

Shear Wind has applied to the province to build a 60-megawatt wind farm called Glen Dhu on Brown’s Mountain, near Bailey’s Brook, that would generate enough renewable energy to power the equivalent of 17,500 homes.

The company submitted its environmental assessment documents Aug. 20 and hosted community gatherings in Merigomish and Lismore during the 30 days provided for responses to the proposed project.

Environment Minister Mark Parent informed the company last month that he needed more information before he could either approve the project outright, or with conditions, or reject it.
“Parent was not rejecting the project,” Magnus said. “He sought more information. I wasn’t surprised with the technical assessment, but more with the community concerns.”

According to the latest diagrams presented Saturday, the four most western turbine sites have been eliminated and other positions have been moved, although Magnus noted all the turbines are well beyond the minimum setbacks contained in the Municipality of Pictou County’s wind bylaw. “We’re within the county bylaw, but we’ve done this because we think it’s the right thing to do,” he said.

While most residents support the project, some who live closest to where the turbines would be erected do not want the project to go ahead.

They say they don’t want their lifestyle and the community’s pastoral setting disrupted by the sight and sound of the turbines, which they feel would industrialize the area.

Faye Kinney bristled upon hearing how the wind farm and accompanying interpretive centre and restaurant proposed near the Glen Dhu site would increase tourism like it has in North Cape, P.E.I.


Magnus acknowledged having discussed the interpretive centre with the Pictou Regional Development Commission as a means of attracting tourists and to educate people about the community and the project.

“The idea of these tourists coming just kills me,” said Kinney.

“I’m not in favour of this project,” Bailey’s Brook resident Eileen MacKinnon added. “I know my life is going to change.”

Fellow resident Kristen Overmyer asked how much greenhouse gas reductions and diversion from coal-fired electrical generation the project would achieve. Company officials said they would have to get back to him with that information.

Meanwhile, environmental scientist Tom Windeyer said the company is addressing matters that include noise, wildlife, land disturbance and surface water. “We are addressing all the issues put forward,” he said.

“The community needs to heal and wholly understand this project,” said Pictou East MLA Clarrie MacKinnon, who also attended the meeting. “As with any project, there has to be middle ground and I think they’ve struck middle ground.”

http://www.pictouadvocate.com/stories.asp?id=503

Wednesday, November 5, 2008

Alternative Energy Stocks link

Charles Morand was interviewed by CBC radio noon time show today.

He was gloomy but not entirely despondent about EarthFirst. Check out the link below (October 25th entry) for a TON of information, including the disclaimer that he has a position with the company.

http://www.altenergystocks.com/archives/wind/

Alternative energy play out of power

Andrew Willis,

For all the promise of alternative energy, small-cap companies in the capital-intensive sector are beginning to fail due to a lack of financing.

Less than a year after going public with a $140-million offering, analysts are predicted that wind farm operator EarthFirst Canada is about to turn out the lights. The company's market capitalization is now just $7-million, and EarthFirst has been unable to land new financing for projects that include a B.C. wind farm named Dokie I.

“The market appears to have priced in a liquidation value for the company,” said a note Monday from Scotia Capital analyst Ben Isaacson.

Back in August, EarthFirst announced that it was reviewing “strategic alternatives,” in other words, it was looking for a buyer, with Blair Franklin Capital Partners and GMP Securities as advisors.

“Two months have passed since the company announced its uncertainty to remain a going concern,” said Mr. Issacson on Monday. “To date, no refinancing deal has emerged that we are aware of. As credit and equity markets have deteriorated materially since then... we find it increasingly difficult to believe that a refinancing package for Dokie I will provide an acceptable economic return to shareholders.”

Shares in EarthFirst are changing hands at 7 cents on Monday, down from last November's IPO price of $2.25 each. GMP Securities and Scotia Capital led the IPO.

EarthFirst is attempting to replace a project financing loan package from German bank WestLB that expired in August. WestLB is one of several German banks that are likely to be recapitalized by the government.

http://www.theglobeandmail.com:80/servlet/story/RTGAM.20081027.WBstreetwise20081027125658/WBStory/WBstreetwise

Nuttby Wind farm hits turbulence

Developer of Colchester County site seeks creditor protection

The future of a $90-million wind energy project in Colchester County is in doubt after its struggling Calgary developer sought creditor protection in Alberta on Tuesday.

EarthFirst Canada Inc.’s initial attempts to find a buyer for the wind company have failed and it sought protection to give it more time to attract a suitor, EarthFirst president Linda Chambers said in a telephone interview from Calgary.

"EarthFirst’s efforts to pursue strategic alternatives have been severely hindered by the unprecedented crisis in the global financial markets, which has impacted on EarthFirst’s ability to raise financing or to complete a sale of the company," the firm said in a statement released Tuesday.

Ms. Chambers said the economic crisis is "paralyzing" the wind energy industry and many other sectors.

"Part of the problem is the credit markets globally have collapsed and it’s having an impact on people wanting to make an acquisition."

EarthFirst owns two projects in British Columbia as well as the proposed 45-megawatt Nuttby Mountain wind energy project in Colchester County.

Despite the turbulent times, EarthFirst will continue its day-to-day operations and hopes to find a buyer by early 2009 that will proceed with the 22-turbine Nuttby Mountain project, she said. "It is scheduled for completion in late 2009 and at this stage we think it can be done, depending on the purchaser."

EarthFirst has submitted the Nuttby project for a federal environmental assessment but has been unable to negotiate deals for wind turbines and warranty agreements.

The proposed development would be located about four kilometres north of the village of Nuttby and six kilometres east of Earltown.

The turbines could generate enough electricity to power about 15,000 homes.

This spring, Nova Scotia Power announced it would purchase electricity from the Nuttby Mountain project for an undisclosed price.

On Tuesday, the province’s largest utility was awaiting word from the Calgary company.

"I think we need to hear from EarthFirst," NSP spokeswoman Margaret Murphy said.

"We owe it to them to hear what they have to say."

Ms. Murphy said EarthFirst is "clearly signalling" it is dealing with a global issue that a lot of companies are trying to cope with these days.

In the past year, NSP has signed power purchase agreements with five other companies for new wind-generated electricity.

EarthFirst announced in March it would buy the Nuttby Mountain project from Atlantic Wind Power Corp. and its partner, Cobequid Area Wind Farms.

At the time, EarthFirst paid $75,000 cash and $374,000 in shares for the Nuttby project. The deal went through in May, when shares were trading in the range of $1.80.

The stock crashed this summer to 22 cents a share and on Tuesday was trading at seven cents a share.

http://thechronicleherald.ca/Business/1088645.html