who is selling at these low prices, page-6

Commentary
12:09 PM, 15 Jul 2009 Robert Gottliebsen
New energy can't wait
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Many times in our history when we have faced a crisis a solution has suddenly appeared. When TRUenergy announced last weekend that it was ceasing long-term maintenance of its Latrobe Valley power station, Australia suddenly faced a potential long-term crisis affecting 25 per cent of its eastern states power generation.

But just prior to the TRUenergy announcement, Santos CEO David Knox on KGBTV explained that there was a solution.

The two broad technologies that are clearly available to reduce carbon emissions are renewables and gas. And the coal gas that has been found in Queensland has a much lower carbon dioxide emission rate that natural gas in the Cooper Basin or the North West Shelf.

Furthermore, Australia has an eastern state pipeline network that with relatively minor additional investment, will enable us to get the gas to power generation plants that can be built close to markets.

The reserves of coal gas in Queensland are nothing less than staggering and represent another North West Shelf. Santos alone has the oil equivalent of 11 billion barrels which is well over twice the reserves of Woodside. But there are many other players in the Queensland game also with big reserves. If we use the coal gas to fuel base load power then it will make wind and solar power, which can't efficiently provide a base load, far more effective.

If Australia combines major solar stations like the one planned near Mildura, with wind power and gas power we can really slash our emissions and contain the cost increases. But we have to start now because of the looming Latrobe valley crisis.

Suddenly all the theoretical debate about carbon aims becomes academic – we are actually required to do something. There are a number of variations.

For example, Ceramic Fuel Cells has a technology that enables the gas to be converted to power in the home. Longer term there are some exciting technologies being developed to harness the brown coal in a way that emits little carbon and returns water to the system.

But that’s in the future. Getting the capital for gas power stations will not be difficult if governments set the rules for pricing as they have done for toll roads and do not allow regulators to change them when they feel like it. This has soured so much past infrastructure investment.



FROM:
http://www.businessspectator.com.au/bs.nsf/Article/Harnessing-the-Latrobe-valley-crisis-pd20090715-TXW5B?OpenDocument