EXTRACTED: Daily News Clips 3/30/23
PIPELINE NEWS
E&E News: Court brings Mountain Valley pipeline closer to completion
Virginia Mercury: Federal court upholds Virginia stream-crossing permit for Mountain Valley Pipeline
Canadian Press: RCMP arrest five people near natural gas pipeline construction site in northern B.C.
KCAU: Woodbury County Board of Supervisors approve sending eminent domain letter
News Channel Nebraska: Jefferson, Washington counties meet with TC Energy about funding road repairs
Law360: FERC Says Block Of Pa.-NJ Pipeline Work Is Unjustified
San Luis Obispo Tribune: Rainstorms exposed SLO County natural gas pipeline. When will crews finish repairs?
THV11: 'It is catastrophic': Remembering the Mayflower oil spill ten years later
WASHINGTON UPDATES
The Hill: Texas Democrat says he’ll support GOP energy package
Associated Press: Companies bid $264M in Gulf oil sale mandated by climate law
E&E News: EPA leaves Americans in the dark on toxic air pollution
STATE UPDATES
Bismarck Tribune: Judge orders feds to resume oil leasing in North Dakota as state lawsuit over canceled sales plays out
Colorado Public Radio: Why Gov. Polis’ ozone crackdown could spur a debate over new oil and gas permits
Associated Press: EPA cites 2 oil and gas firms over Permian Basin pollution
EXTRACTION
Canadian Press: N.L. says its waters are home to ‘low-carbon’ oil. Scientists say that doesn’t exist.
Guardian: What is carbon capture, usage and storage?
CLIMATE FINANCE
S&P Global: UN-backed investors' group demands end to financing of oil and gas projects
The Hill: Yellen calls climate change ‘existential threat’ after GOP lawmaker labels it ‘Trojan horse’ for spending
Friends of the Earth: French bank Société Générale withdraws from Rio Grande LNG
Reuters: Financial hurdles rise for green-lighting new US LNG plants
Canadian Press: Budget measures unlikely enough to spur major carbon capture investments: Experts
OPINION
San Diego Union Tribune: Opinion: Californians need to be protected from volatile energy prices
PIPELINE NEWS
E&E News: Court brings Mountain Valley pipeline closer to completion
Niina H. Farah, 3/30/23
“The Mountain Valley pipeline inched toward completion after a three-judge panel Wednesday unanimously denied environmentalists’ challenge to a Virginia water permit for the planned natural gas project,” E&E News reports. “The 4th U.S. Circuit Court of Appeals found that Virginia regulators had done an extensive review before certifying that construction of about 107 miles of pipeline across waterways in the commonwealth complied with state water standards. “Because we conclude that the Agencies’ decision to grant MVP’s application was neither arbitrary nor capricious, we deny the petition for review,” said Judge Stephanie Thacker, writing the opinion for the court. The ruling is from the same three judges who have repeatedly rejected permits for the pipeline, contributing to construction delays and cost overruns for the $6.6 billion project. A decision from the 4th Circuit on a similar water certification from West Virginia is still pending… “Environmental groups led by the Sierra Club sued the Virginia State Water Control Board in 2021 for granting a Section 401 certification for the pipeline under the Clean Water Act, which confirms that the project is in line with state water laws… “ClearView Energy Partners LLC said in a note to clients yesterday that the Army Corps could still be on track to issue the permit by its April 29 deadline if the 4th Circuit simply sends West Virginia’s certification back to the state Department of Environmental Protection, rather than tossing it out. FERC must also reissue a biological opinion and incidental take statement for the project.”
Virginia Mercury: Federal court upholds Virginia stream-crossing permit for Mountain Valley Pipeline
SARAH VOGELSONG, 3/29/23
“In a win for Mountain Valley Pipeline, a federal court on Wednesday struck down a challenge to a 2021 decision by Virginia’s State Water Control Board and Department of Environmental Quality to grant the project a critical stream-crossing permit, concluding state officials “did not simply ‘rubber stamp’” the request,” the Virginia Mercury reports. “...The ruling was a departure from a string of decisions by the 4th Circuit overturning permits for the 303-mile natural gas pipeline through West Virginia and Virginia that developers have been trying to build since 2014. Four judges on the court, including Thacker, Gregory, Wynn and former judge William Traxler, have repeatedly found federal agencies conducted inadequate or flawed reviews as the basis of issuing those permits… “The petition the court struck down Wednesday was filed by 10 environmental groups, led by the Sierra Club, Appalachian Voices, the Chesapeake Climate Action Network and Wild Virginia after Virginia’s water board voted 3-2 in December 2021 to approve a state water protection permit for the pipeline. David Sligh, conservation director for Wild Virginia, said in a statement that the groups “respect the court’s opinion but we are disappointed that the Board’s badly flawed decision will stand.” Despite the legal victory, the project is still seeking federal approvals from the U.S. Forest Service to cross a portion of the Jefferson National Forest and from the U.S. Army Corps of Engineers.”
Canadian Press: RCMP arrest five people near natural gas pipeline construction site in northern B.C.
3/29/23
“The RCMP say five people have been arrested at two camps in the area where a disputed natural gas pipeline is under construction in northwestern British Columbia,” the Canadian Press reports. “Police say Mounties responded to a complaint Sunday night from Coastal GasLink security, who reported that a worker had been "swarmed" by a group of people wearing masks. Police say the group allegedly fired flares and gained access to one of the pipeline company's vehicles when the worker left the area because of the intimidation… “A statement from the Gidimt'en Checkpoint, whose members oppose the pipeline's construction through Wet'suwet'en territory, says the people arrested Wednesday were mostly Indigenous women, including the daughter of a hereditary chief. Checkpoint spokesperson Sleydo' told CP "this harassment and intimidation is exactly the kind of violence designed to drive us from our homelands." The Gidimt'en statement says the police search warrant was issued for theft under $5,000, but it had no clear relation to the village site. The RCMP told CP one person was arrested after attempting to prevent officers from executing the warrant, while the others allegedly refused to follow police directions. Opposition among Wet'suwet'en hereditary chiefs to the 670-kilometre pipeline sparked rallies and rail blockades across Canada in 2020, while the elected council of the Wet'suwet'en First Nation and others nearby have agreed to the project. "A majority of these communities have also signed equity option agreements to become owners in the project," the statement from TC Energy says.
KCAU: Woodbury County Board of Supervisors approve sending eminent domain letter
John Murphy, 3/28/23
“The Woodbury County Board of Supervisors approved of sending a letter to the Iowa Utilities Board in regard to eminent domain,” KCAU reports. “The letter would be on sent behalf of the county board and residents which discusses CO2 pipelines and eminent domain usage in the county. “We oppose use of eminent domain and want to highlight the hazardous nature of the carbon capture pipelines proposed to run through our county, under our secondary roads, through our property owner’s farmland and wanted to make that concern know. It’s just another signal the board sent of our heartburn so to speak of this project,” Woodbury County Board Chair Matthew Ung told KCAU.
News Channel Nebraska: Jefferson, Washington counties meet with TC Energy about funding road repairs
Elic Chisam, 3/29/23
“Officials in southeast Nebraska and north east Kansas are working on plans to fix a road that connects the two,” News Channel Nebraska reports. “The road desperately needs it. Jefferson County Commissioner Mark Schoenrock and other area leaders want TC Energy’s help paying the bill… “Representatives from Jefferson County in Nebraska, Washington County, Kansas and the Village of Steele City met with TC Energy officials Wednesday. The counties are looking for financial support to repair a roughly-five mile stretch of 576th Avenue (named Rainbow Road on Kansas side of the state line). It’s fallen into disrepair under the weight of heavy truck traffic as TC Energy continues cleanup from the Keystone Pipeline Oil Spill in December. "Our county roads were not designed and built to withstand that volume of heavy truck traffic," Schoenrock said. "The road is basically going to have to be rebuilt. It's destroyed the base." “...The estimated price tag of a fix is $6 million, but that number is preliminary… The traffic isn’t expected to slow for a couple months still, but officials want to get the wheels spinning on the project now.”
Law360: FERC Says Block Of Pa.-NJ Pipeline Work Is Unjustified
Keith Goldberg, 3/29/23
“The Federal Energy Regulatory Commission said a bid to block construction of a gas pipeline expansion project in Pennsylvania and New Jersey simply amounts to a disagreement over evidence the agency used to approve the project, but opponents insisted Wednesday that their emergency stay request is warranted,” Law360 reports.
San Luis Obispo Tribune: Rainstorms exposed SLO County natural gas pipeline. When will crews finish repairs?
KATHE TANNER, 3/29/23
“It could be weeks before SoCalGas crews can conduct permanent repairs on a natural gas pipeline exposed during the recent string of rainstorms that hit San Luis Obispo County, the utility company said Monday,” the San Luis Obispo Tribune reports. “The pipeline remains exposed after heavy rainfall and flows from Whale Rock Reservoir,” which recently reached full capacity and spilled for the first time in about 18 years, SoCalGas spokesperson Dan Guthrie told The Tribune by email Monday night. A series of atmospheric river-fueled storms undermined and then exposed the pipe. At first, SoCalGas emergency crews filled oceanfront parking areas at Studio Drive and 24th Street in Cayucos… “According to Guthrie, SoCalGas has to wait until Whale Rock Reservoir stops spilling to proceed with permanent gasline repairs… “(SoCalGas) is in the process of preparing to install two temporary supports over the waterway that will secure the pipeline in place,” he told SLO, adding that “support installation is currently anticipated to be completed by mid-April.”
THV11: 'It is catastrophic': Remembering the Mayflower oil spill ten years later
Lauren Johnston, 3/29/23
“In the decade since a pipeline ruptured in the small Arkansas town of Mayflower, the community has dealt with health issues, environmental concerns, and the questions that linger about the pipeline industry,” THV11 reports. “On March 29, 2013 ExxonMobil's Pegasus Pipeline, which was carrying Canadian crude oil from Illinois to Texas, ruptured in the Northwoods subdivision in Mayflower. The pipeline spilled out more than 3,000 barrels of oil into the neighborhood, seeping under homes and saturating yards… “In the immediate days after, then-Attorney General Dustin McDaniel toured the damage with other city leaders. "I have been reminded by Exxon's representatives that this is a relatively small spill," McDaniel said at the time. "I hope that they realize that to the homeowners in this area. It is not small, it is catastrophic." “...Several families were evacuated from their homes while Exxon crews attempted to remove all oil from the surrounding environment. A total of 22 homes were evacuated in the spill's aftermath. The EPA was also on hand to monitor air quality in what it labeled a "major spill," but some residents reported issues with headaches and other sicknesses due to the smell… “In 2015, ExxonMobil paid a little over $5 million to settle claims that it violated the Clean Water Act and Arkansas environmental laws. The company did not admit liability in the spill. The pipeline has sat dormant in Mayflower for the last decade. In a statement, the company that now owns the pipeline, Energy Transfer, told THV11 it has not announced any plans to restart it.”
WASHINGTON UPDATES
The Hill: Texas Democrat says he’ll support GOP energy package
MYCHAEL SCHNELL, 3/29/23
“Rep. Vicente Gonzalez (D-Texas) announced on Wednesday that he will support the House GOP’s energy package, which the chamber is set to vote on this week,” The Hill reports. “Gonzalez — who represents Texas’ 34th congressional district — said that while the GOP legislation is “far from perfect,” it represents a step forward in improving federal environmental review and permitting processes. “I plan to support H.R. 1, the Lowering Energy Costs Act, when it comes to the floor for a vote later this week,” Gonzalez said in a statement. “In order to fully realize the benefits of the Bipartisan Infrastructure Law, remain competitive on the world stage, and ensure the American people have access to safer roads and bridges and reliable and affordable energy, we must improve federal environmental review and permitting processes,” he added. “While this package is far from perfect, it is a step forward.” “...Senate Majority Leader Charles Schumer (D-N.Y.) said the energy package is “dead-on-arrival” in the upper chamber, writing on Twitter “All it takes is a brief glance at House Republicans’ H.R. 1 to realize it’s just a giveaway to Big Oil pretending to be an “energy package.”
Associated Press: Companies bid $264M in Gulf oil sale mandated by climate law
KEVIN McGILL and MATTHEW BROWN, 3/29/23
“Oil companies offered a combined $264 million for drilling rights in federal waters in the Gulf of Mexico on Wednesday in a sale mandated by last year’s climate bill compromise,” the Associated Press reports. “The auction was the first in the Gulf in more than a year and drew strong interest from industry giants including Chevron, BP and ExxonMobil. But it could further test the loyalty of environmentalists and young voters who backed President Joe Biden in 2020 and were frustrated by this month’s approval of a huge drilling project in Alaska. Developing the Gulf leases would produce up to 1.1 billion barrels of oil and more than 4 trillion cubic feet (113 billion cubic meters) of natural gas over 50 years, according to a government analysis. Burning that oil would increase planet-warming carbon dioxide emissions by tens of millions of tons, the analysis found. A legal challenge to the sale from environmental groups is pending in federal court. Bids were up 38% from the last auction and marked the most offered in a sale since 2017. Chevron USA was the top bidder, offering $108 million for 75 tracts. BP Exploration and Production had $47 million in high bids and Shell Offshore had $20 million in high bids.”
E&E News: EPA leaves Americans in the dark on toxic air pollution
Sean Reilly, 3/29/23
“Across the United States, residents of neighborhoods abutting refineries, chemical plants and other major industrial sources can generally be sure of two facts: Those facilities emits tons of dangerous pollutants and EPA rarely requires monitoring for their presence in local air,” E&E News reports. “Meanwhile, after a Norfolk Southern Corp. freight train spectacularly derailed in northeast Ohio last month, the agency rushed to protect residents with around-the-clock air tracking for dozens of contaminants. The contrast is striking. Environmental advocates elsewhere don’t begrudge East Palestine, Ohio, residents that exceptional response. But the rule is a “broken” system that allows companies to pollute, then fails to keep tabs on the public’s real-life exposure to that pollution, Anne Rolfes, director of the Louisiana Bucket Brigade, told E&E. “There’s no question that people who live on the fence line are experiencing a long-term disaster,” Rolfes told E&E. Although lacking the fiery visuals of the Ohio derailment and subsequent controlled explosion, fence-line pollution “certainly has significant health impacts, and those are going unanswered and untended to by EPA.”
STATE UPDATES
Bismarck Tribune: Judge orders feds to resume oil leasing in North Dakota as state lawsuit over canceled sales plays out
BLAKE NICHOLSON, 3/28/23
“A judge has ordered the U.S. government to allow oil and gas lease sales to resume on federal lands in North Dakota amid a legal battle over the Biden administration’s halting of the practice two years ago,” the Bismarck Tribune reports. “However, U.S. District Judge Daniel Traynor denied the state's request that the Bureau of Land Management also be immediately forced to hold sales that were canceled in 2021 and 2022 amid the nationwide pause. North Dakota contends canceled lease sales cost it hundreds of millions of dollars in royalties. Traynor wrote in his 82-page order that "North Dakota has a substantial likelihood of prevailing on the merits" but that "given this preliminary stage of litigation and the incomplete administrative record, however, not all of North Dakota's requested relief is appropriate." “...Several environmental groups have intervened in North Dakota’s lawsuit, seeking to protect public land: the Center for Biological Diversity, the Dakota Resource Council, the Sierra Club and the Western Organization of Resource Councils. They also had asked Traynor to reject North Dakota's request to force the government's hand, arguing in part that North Dakota's "underlying irreparable harm theories are meritless," and that "The federal minerals at issue belong to the United States -- not North Dakota -- and the U.S. Constitution empowers the federal government to decide how that property will be managed."
Colorado Public Radio: Why Gov. Polis’ ozone crackdown could spur a debate over new oil and gas permits
Sam Brasch, 3/28/23
“Colorado clean air advocates are rushing to finalize a yet-to-be-introduced bill to limit the oil and gas industry’s contribution to Front Range ozone pollution after Gov. Jared Polis directed his administration to tackle the same issue earlier this month,” Colorado Public Radio reports. “At issue is whether the state can both improve air quality—and continue to permit new oil and gas drilling sites. The governor’s plan calls for regulations to push companies toward new technologies, like using electricity to power fossil fuel extraction. In a letter sent earlier this month, he directed state agencies to pass rules to cut the industry’s emissions of a critical ozone ingredient—nitrogen oxides—30 percent by 2025 and 50 percent by 2050. Meanwhile, lawmakers and environmental groups are drafting legislation to give air regulators more authority over the permitting process for new drilling operations. Supporters of the effort have argued the approach will help ensure the state does not greenlight projects that put the Front Range further out of compliance with the U.S. Clean Air Act.”
Associated Press: EPA cites 2 oil and gas firms over Permian Basin pollution
MICHAEL BIESECKER, 3/28/23
“Two Texas companies have resolved Clean Air Act violations with the Environmental Protection Agency by agreeing to reduce emissions of planet-warming methane and other harmful pollutants wafting from the nation’s largest oil and gas producing region,” the Associated Press reports. “EPA announced Monday that Matador Production Company has agreed to pay $6.2 million in fines and mitigation measures related to 239 oil and gas well pads in New Mexico. Permian Resources Operating agreed earlier this month to pay $610,000 and make improvements to its equipment to settle environmental violations. The enforcement actions came after EPA flew a helicopter equipped with a special infrared camera that can detect emissions of hydrocarbon vapors that are invisible to the naked eye. EPA announced a new round of overflights in August, four days after publication of an investigation by The Associated Press that showed 533 oil and gas facilities in the region are emitting excessive amounts of methane and named the companies most responsible.”
EXTRACTION
Canadian Press: N.L. says its waters are home to ‘low-carbon’ oil. Scientists say that doesn’t exist.
Sarah Smellie, 3/29/23
“Climate scientists say there is no such thing as “low-carbon” oil, despite the Newfoundland and Labrador government’s claims that it is produced in the waters off the province’s east coast,” the Canadian Press reports. “The provincial government has long said its “low-carbon” offshore oil will be part of the global transition away from fossil fuels. Finance Minister Siobhan Coady used the term last week when she presented her budget, which included more than $60 million to expand offshore oil exploration. But climate scientists across the country say the phrase is misleading, and even nonsensical. “There is no low-carbon oil,” Damon Matthews, a climate science professor at Concordia University, told CP. “It’s an oxymoron and a misnomer.” “...Matthews told CP it is true that fewer emissions are produced when oil is extracted from Newfoundland’s four offshore oilfields compared to when it is removed from the Alberta oilsands. But extraction emissions are a small percentage of oil’s carbon footprint, Matthews told CP, adding that it’s the emissions produced when oil is ultimately burned that are driving climate change.”
Guardian: What is carbon capture, usage and storage?
Jillian Ambrose and Fiona Harvey, 3/29/23
“The UK government, along with many other governments around the world, is placing a lot of faith in carbon capture and storage, the technology that can keep carbon dioxide emissions from entering the atmosphere. But does it work, and how can we afford it?,” the Guardian reports. “...The key aim is to stop the CO2 escaping into the atmosphere and exacerbating the climate crisis. In most versions, the preliminary step involves fitting factory chimneys with solvent filters, which trap carbon emissions before they escape. The gas can then be piped to locations where it can be used or stored. Most carbon dioxide will be injected deep underground – where fossil fuel gas comes from in the first place – to be stored where it cannot contribute to the climate crisis. This can be part of a process called “enhanced oil recovery”, where CO2 is pumped into an oilfield to force out the remaining pockets of oil that would otherwise prove difficult to extract… “The UK government has committed £20bn over the next 20 years to developing CCS… “Although carbon capture and storage technology is expensive at present, within a few decades it is likely to come down sharply in price, according to a study published earlier this year, which argues that the companies that profit from extracting fossil fuels – oil, gas and coal producers around the world – should be paying for an equivalent quantity of carbon dioxide to be stored geologically as a condition of being allowed to operate. Under a “carbon takeback obligation”, all fossil fuels extracted or imported into a nation or group of nations would be offset by storing underground an amount of carbon dioxide equivalent to that generated by that fuel. Phased in over time, it could be used to store 100% of emissions by 2050, to help the world reach net zero. In reality, this plan is pretty unlikely to go ahead. Instead, governments are crossing their fingers that the costs will come down as the technology evolves.”
CLIMATE FINANCE
S&P Global: UN-backed investors' group demands end to financing of oil and gas projects
Bill Holland, 3/29/23
“A UN-sponsored group of institutional investors managing $11 trillion in assets called for the elimination of investment in carbon-intensive oil and gas projects as part of the global effort to achieve net-zero carbon emissions by 2050,” S&P Global reports. “The Net-Zero Asset Owner Alliance issued the directive March 29 as part of new guidance to its 85 members, predominately European institutional investors. The group asked consumers and suppliers of oil and gas to set science-based goals to reduce emissions from their own operations, their suppliers, and the use of their products, commonly referred to as Scope 1, 2 and 3 emissions. The alliance called for investors to back energy projects that align with net-zero emissions goals and for oil and gas companies to adopt emissions targets aligned with those of the UN's Intergovernmental Panel on Climate Change or bodies such as the International Energy Agency. "On private asset investment in new unabated oil and gas infrastructure, investors, including alliance members, shall align with credible 1.5-degree C net zero scenarios," the Net-Zero Asset Owner Alliance said in a news release. "This cannot be achieved if there are new upstream infrastructure investments in new oil and gas fields." The alliance called for an immediate end to investments in carbon-intensive oil extraction projects such as oil sands. Shale gas and oil projects often have lower carbon footprints than their conventional peers and could be financed on a case-by-case basis, Alliance spokesperson Oliver Wagg told S&P.
The Hill: Yellen calls climate change ‘existential threat’ after GOP lawmaker labels it ‘Trojan horse’ for spending
BRETT SAMUELS, 3/29/23
“Treasury Secretary Janet Yellen on Wednesday pushed back against a GOP congressman who voiced skepticism about the threat of climate change, suggesting the issue was being used by the Biden administration to secure funding and was not a serious concern,” The Hill reports. “Can you provide to me, or do you know any research on your own to justify this drastic climate change that we have to do today or the next four or five years this world’s going to come to an end?” Rep Jerry Carl (R-Ala.) asked Yellen at a hearing on the banking system. When Yellen pointed to an “enormous amount of research” summarized by a United Nations group about the threat of climate change, Carl claimed that the global organization “makes a lot of money off the climate change scenario.” “There is a strong scientific consensus and enormous body of research,” Yellen responded… “Carl argued that the issue of climate change was being used by the Biden administration so it could secure funding for its various priorities. “The way it’s being used now is like a Trojan horse. Everything you want to use it for to get into the conversation is climate change related,” Carl said… “Climate change, I believe, is an existential threat, and we will leave a world to our grandchildren and great grandchildren that will become uninhabitable if we don’t address climate change,” Yellen continued. “We have let decades pass in which we have understood that this was a problem and not taken meaningful action.”
Friends of the Earth: French bank Société Générale withdraws from Rio Grande LNG
3/28/23
“French bank Crédit Agricole confirmed this Tuesday to the media Novethic that it will not take part in the financing of the Rio Grande LNG project. The French bank had been the target of a coalition of US and French organizations since 2017, when it was engaged as financial advisor by the project sponsor, NextDecade. The organizations welcome this news and call on all financial institutions to stay away from this disastrous LNG project. This public announcement follows NextDecade’s recent one that it would reach a final investment decision for its Rio Grande LNG project by the summer of 2023, after securing several sales and purchase agreements in the past months. Among the buyers are the French utility Engie, which committed in May 2022 to import fossil gas from Rio Grande LNG for 15 years – until at least 2041. TotalEnergies is also expected to announce a new buying contract with NextDecade. “After years of mobilization by activists and communities on both sides of the Atlantic, this announcement is a victory for civil society and a defeat for Rio Grande LNG. It comes at a time when far too many governments and companies in Europe are rushing into US LNG, locking us into dependencies that are already costing the climate and citizens far too much,” said Lorette Philippot, campaigner at Friends of the Earth France.
Reuters: Financial hurdles rise for green-lighting new US LNG plants
Scott Disavino, 3/29/23
“Financial hurdles are rising for U.S. liquefied natural gas (LNG) project developers aiming to get their proposed export terminals off the ground as investors become more demanding,” Reuters reports. “The banking crisis added a new snag to rising interest rates and supply chain shortages for these multi-billion-dollar projects, which months ago were seen as sure bets. Two of four new projects aiming for a financial okay this quarter have been pushed back, and others will face that higher bar, analysts told Reuters. The pair that have gone ahead - Venture Global LNG's project in Louisiana and Sempra Energy's (SRE.N) in Texas - embody what analysts tell Reuters have met the new requirements: less reliance on developer's equity and more on fully contracted capacity. Both projects won approvals with strong corporate financing - $7.8 billion for Venture Global and $6.8 billion for Sempra - Jefferies Group Managing Director of Equities Research Lloyd Byrne told Reuters. And the pair address volatile gas-price risk by having about 90% of production capacity under long-term deals, Byrne wrote in a report this week. Rivals who are unable to recruit a full contingent of buyers face "a project stalling or outright cancellation," he told Reuters.
Canadian Press: Budget measures unlikely enough to spur major carbon capture investments: Experts
Amanda Stephenson, 3/29/23
“A question mark continues to hang over the future of carbon capture and storage projects in Canada, in spite of a pledge in Tuesday's federal budget to deliver more investment certainty for major emissions-reducing projects,” the Canadian Press reports. “Look, we have set some very aggressive climate targets in Canada. You can't kick the can down the road,” carbon capture advocate James Millar told CP, arguing that's exactly what the federal government did Tuesday when it provided no additional details around its previously stated intention to reduce the risk of investing in pricey emissions-reduction projects by essentially guaranteeing the future price of carbon. “The difference comes down to investment certainty in the U.S., versus the promise of investment certainty in Canada.” As president and CEO of the International CCS (carbon capture and storage) Knowledge Centre, a non-profit organization based in Regina, Millar had been closely watching Tuesday's budget in hopes of obtaining more federal support for the expensive technology that can be used to trap harmful greenhouse gas emissions from industrial processes and store them safely underground… “On Tuesday, the federal government reiterated that it intends to create such a mechanism through a so-called carbon contracts for difference system - but disappointed many who were hoping for details. Instead, the government announced it plans to begin consultations around the development of such a program.”
OPINION
San Diego Union Tribune: Opinion: Californians need to be protected from volatile energy prices
Ryan Hanna is an assistant research scientist with the Deep Decarbonization Initiative at UCSD and lives in Pacific Beach; Emily Carlton is a research associate with the Deep Decarbonization Initiative at UCSD and lives in Normal Heights; Sean Smillie is a Ph.D. candidate with the Department of Engineering and Public Policy at Carnegie Mellon University and lives in Pittsburgh, 3/27/23
“This winter, Californians saw their highest electricity and natural gas prices in years, up five and eight times, respectively, at their December peak compared to prices during the previous winter,” Ryan Hanna, Emily Carlton and Sean Smillie write for the San Diego Union Tribune. “...But regulator efforts, aimed at smoothing bills and preventing future similar price spikes, are just one part of a broader strategy needed to insulate customers. As we look to the future, a pivotal set of choices about how to cut California’s carbon emissions raises profound uncertainties about the future of gas demand and prices. Alongside preventive measures, a serious program to fully protect Californians from volatile prices must also grapple with the uncertain effects that decarbonization could have on the gas industry and, subsequently, on energy prices… “At the same time, gas utilities and other municipalities are heeding Europe’s example and exploring strategies to blend decarbonized fuels like biomethane and hydrogen into the gas system, build new hydrogen pipelines, convert gas power plants to green hydrogen, and replace backup diesel generators, used during power outages, with hydrogen fuel cells. Moving past fossil gas rests, most likely, with a combination of electrification and decarbonized fuels. Each has advantages; both were recently bolstered by the federal government through billions in new incentives. All of this uncertainty in gas demand, and in turn in gas prices, merits precaution. Tangibly, that means proactive measures like risk mitigation plans that insulate customers from price fluctuations and programs that support those least able to transition to new devices and fuels.”