FORGET “CLEAN” COAL FOR EU

Carbon capturing technology doomed in Europe-study
Pete Harrison (w/James Jukwey), September 16, 2010 (Reuters)

"Innovative carbon-trapping technology might barely get past the testing phase in Europe after the economic crisis and a shift to green power destroys incentives, a new study warns.

"Massive European investment in renewable energy will reduce demand for carbon emissions permits in 2020, dragging down their price and undermining investment in Carbon Capture and Storage (CCS), says…EU Energy Trends to 2030 by the National Technical University of Athens…The complex computer modelling exercise, commissioned by European Union Energy Commissioner Guenther Oettinger, factors in all of the EU's latest climate and energy legislation, most importantly the 2008 renewable energy directive…[It] sees carbon prices rising just 7 percent to the equivalent of 16.5 euros ($21.59) a tonne in 2020 and 18.7 euros a tonne in 2030."

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"The power industry hopes CCS will allow it to continue burning cheap and abundant coal supplies, trapping and burying waste emissions in underground cavities such as depleted gas wells to prevent them from exacerbating climate change…But additional costs of around 1 billion euros per power plant have prevented CCS from taking off…

"To get past the initial hurdles, the EU plans at least eight demonstration projects in the years ahead and will agree billions of euros of subsidies for them in coming weeks…[The study casts] doubt on whether those subsidies would catalyse any more meaningful investment…[but acknowledges] many more factors would come into play…"

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"…In another study…for power industry body Eurelectric, [the report’s author] showed that CCS might become competitive with conventional fossil fuel plants with a carbon price above 30 euros a tonne…The cost of transporting and storing captured carbon dioxide ranges from 6 to 25 euros a tonne, that [study] said.

"Renewable energy is seen accounting for 80 percent of energy investment in 2015-2020, but then to slow dramatically after the EU's climate targets are met…a finding [in the report that sparked criticism…[A political leader who] helped broker the EU renewable energy laws in the European Parliament in 2008, said the scenario was not logical given that countries around the North Sea are on the verge of investing heavily in a power grid for massive wind expansion there [and dismissed the report as political ploy]..."