News Roundup
Coldry trial program and Latrobe Valley project
Our most recent announcement on the status of our proposed Latrobe Valley project got a little bit of extra attention.
Environment Victoria CEO Mark Wakeham took to Twitter.
Some may find it odd that we'd direct attention to his opinions, but environmental advocacy is an important and necessary part of the democratic mix as we strive toward cleaner air and water, protection of flora and fauna and increasing efficiency in how we use scarce resources.
It’s with these noble aims in mind that we find it strange that he needs to resort to misrepresenting facts to his followers.
Mark writes:
“Yet another attempt by Environmental Clean Technologies to boost its share price and build a case for public funds”.
Let’s break that down.
Mark is a CEO. That means he is probably qualified and competent to read an ASX announcement. It’s safe to assume his business experience means he understands ASX announcements are made to comply with the Corporations Act and ASX Listing Rules regarding continuous disclosure.
As an investor, you know we’re required to announce material information. It’s the law.
Our announcement wasn’t a manufactured attempt to boost the share price as he would like his followers to believe. Quite simply, we reached an agreement with a company on a matter of material interest, which triggered an obligation to disclose. That disclosure naturally includes explanations around what the project may entail and its alignment with broader strategy. If an announcement affects the share price, that’s a decision by the market, not us.
Mark then claims we’re trying to ‘build a case for public funds’, suggesting we’re trying to convince the government to give us a grant. Nowhere in our announcement does it allude to seeking public funds. Mind you, if there was a grant on offer, we’d be mad not to apply, but this isn’t the case. So, why would he say that? Why be misleading? I’ll let you be the judge, but it sure looks like an attempt to manufacture some outrage out of nothing.
And here's the irony...
Having accused us of seeking public funds, he wholeheartedly supports wind and solar, which continue to rely on taxpayer funds, and still aren’t commercial (despite many claims to the contrary). By all accounts, renewable subsidies will total around $60 billion by 2030.
Don’t get us wrong. Mark is probably well-intentioned. And it can be said of both Mark and ECT, that we each have a vested interest in the positions we take. But after decades of subsidies for wind and solar (and a large chunk of gold plating across the network), we have a reliability and affordability crisis across our power network that needs to be addressed. Denying the part renewables plays in this problem doesn’t help.
What seems to elude Mark is our proposed plant will focus on three key market segments:
- Small to medium volume consumers who need affordable utility grade heat to run their business. Timber, dairy and agriculture. Many switched to gas when the Morwell briquette plant closed, but with the increasing gas price, they need an alternative. Coldry is an ideal substitute and is more cost-effective than importing black coal from NSW or Queensland.
- Large consumers like Loy Yang power station who need an affordable fuel to restart their boilers after a shutdown.
- High-value downstream products like PCI coal (the type used to generate heat in blast furnaces), activated carbon (which has applications in water and air cleaning, food & beverage, medical and pharmaceutical industries), and of course, hydrogen production.
These applications don’t step on the toes of wind and solar because wind and solar aren’t suitable for providing process heat to these industries. At least, not in any technically efficient or affordable manner.
Wind and solar can’t support primary iron production. That takes lots of heat, energy and chemistry provided by coal or gas.
Wind and solar can’t make activated carbon.
Wind and solar could be used to make hydrogen by making electricity to 'split' water, but scale, intermittency and cost are a problem (more on that in a future article).
We do step on the toes of gas, which has rocketed in price in recent years, thanks in large part to the closure of coal plants creating increased domestic demand for gas while globalisation and new gas export projects drive parity pricing.
In terms of power generation, we do think it makes sense to ensure we have a viable solution for a brown coal based HELE power station should we need it. We’ve crunched the numbers, and they are better than a wind-gas solution.
And this is where we fundamentally differ; we believe that for solutions to be environmentally sustainable, they need to be economically sustainable. Delivering emissions reductions needs to be technology agnostic and seek to balance the energy policy trilemma: affordability, reliability, emissions intensity.
That’s why we’ll provide an exclusive license to the Victorian project for up to 10 million tonnes a year, allowing the Coldry plant to expand if needed to fill the gap left by retiring power stations or to serve new markets for PCI coal, fertiliser, SNG, hydrogen and steel production.
Our zero-emission Coldry plant can produce an alternative solid fuel that helps achieve a balance between affordability, reliability and emissions intensity as we sensibly transition to a low or zero-emissions economy in a fiscally responsible way over coming decades.
If we’re lucky, wind and solar will be weaned off the current $3 billion a year in subsidies and be able to stand on their own after 2030. Until then, we need pragmatic, transitional solutions that deliver economic security, energy security and lower emissions intensity here and abroad.
Read more >
Governance
Withdrawal of Resolution 4 from 2017 AGM
Each year we’ve included this Resolution as part of our capital management planning. The Resolution gives us the ability to issue up to an additional 10% more shares than the regular 15% allowance.
A few shareholders queried why we need it, given our current cash position and plans. We agreed and withdrew it from the Agenda.
Speaking of the AGM, it will be held between 10 am and 12 pm on Wednesday 22 November at the offices of RSM, level 21, 55 Collins Street, Melbourne.
We look forward to seeing you there if you can make it.
Read more >
Newswires
Cost of power strangling the economy
8 Nov 2017: There’s a state election in Queensland and power prices are a major issue. An article by ABC Online highlights the launch, by Canegrowers, Queensland Farmers Federation, and the Chamber of Commerce and Industry Queensland, of the Queensland Industry Energy Alliance with an aim to put downward pressure on prices.
Travis Tobin, Chief Executive of the Queensland Farmers Federation describes the objective of the alliance, “It’s far better to price electricity efficiently and have that money flowing through to businesses that can stimulate economies and regional communities rather than having it in Treasury coffers.”
Read more >
Report: Ultra-supercritical coal-fired power station in North Queensland is viable
3 Nov 2017: The Townsville Bulletin ran a revealing article recently. It turns out a report delivered earlier this year confirming the viability of a high-efficiency, low-emission (HELE) coal-fired power station was never made public.
Prepared by Brisbane-based consultancy Energy Edge for the Queensland State Labor government, the report details the viability and broader benefits of an ultra-supercritical plant in north Queensland, including improvements in energy reliability and affordability.
“The report says the introduction of a new ultra-supercritical (USC) coal-fired asset would allow existing subcritical power stations to be phased out.”
Read more >
India set to take up clean coal technologies in a big way
1 Nov 2017: A recent article in India’s Economic Times highlights the drive by the Indian government to deploy clean coal technologies, according to Shusheel Kumar (pictured), the Secretary of the Coal Ministry.
Shareholders will know Mr Kumar as the sponsor of the current review of our project by NITI Aayog. The main objective is energy security. The secondary objective is affordability.
Energy security essentially comes down to the security of supply and reliability.
Security of supply entails developing domestic coal resources, reducing reliance on imports.
Reliability entails development of robust mining operations and supply chains, which requires significant rail and storage networks.
Read more >
https://environmentvictoria.org.au/who-we-are/our-people/
snazzy
ˈsnazi/
adjective
informal
adjective: snazzy; comparative adjective: snazzier; superlative adjective: snazziest
- stylish and attractive.
"snazzy little silk dresses"
WTF
Sounds like they are more interested in what they are wearing than the environment
What a bunch of FLOGS
(20min delay)