Quotulatiousness

November 22, 2011

The biggest threat to the environmental movement

Filed under: Economics, Science, Technology — Tags: , , — Nicholas @ 09:50

No, it’s not some ferociously polluting corporation, or a dangerously powerful conservative politician or a candidate for the GOP nomination in the United States. It’s algae:

“We can engineer, humbly, like we have been domesticating plants for a long time,” one scientist told me. “We engineer the algae to do biochemically something quite different to what they’d be doing in the wild: they still take photons from the sun, and via biology, turn it into a useful captured molecule. We have them doing something similar but with stunning efficiency: it’s 40 to 100 times more efficient,” says Elbert Branscomb, chief scientist to the US Department of Energy.

There are (at least) around 60 startups hoping to produce oil and diesel biologically, with accelerated fermentation or photosynthesis techniques to produce an end product that is 100 per cent compatible with the existing infrastructure. Some, for example, tweak the algae to make them do photosynthesis anything from 40 to 100 times more efficiently. LS9 received $30m in funding and has a one-step process to convert sugar to create renewable petrol. It expects production within five years. If oil prices remain high, say over $40 or $50 a barrel, then it’s viable.

So why is this the biggest threat to the environmental movement?

But the greatest challenge cheap hydrocarbons poses is for people whose outlook is founded on what I call “End Times logic”. The most successful political movement in recent years is environmentalism, which expanded from specific concerns about pollution and conservation into an all-encompassing worldview, complete with very preachy appeals to changing parts of our lifestyles.

These ranged from “Don’t flush the loo too often”, to “Don’t fly for a weekend break”, to “Eat less red meat”. Very few politicians have felt courageous enough to contradict this. And the movement has achieved its ascendancy through urgent, apocalyptic appeals, rather than using calmer methods of rational persuasion which involve costs and benefits to be totted up. These new energy sources pose a profound problem: they saves the planet, and we carry on with minimum disruption.

I expect that one effect will be that environmentalism will become much more about everyday concerns such as pollution, and conservations again, back to where it started. But it grew into a vacuum, after the end of the Cold War, when great political ideas seemed to lose credibility. As a way of driving the political agenda, it will become currency without value. Buzzwords such as “sustainability”, founded on a resource-constrained view, will no longer be credible. People will simply laugh at them.

October 14, 2011

Green beliefs, but brown realities

Filed under: Economics, Environment, Food, Media — Tags: , , — Nicholas @ 13:35

Patrick J. Michaels reviews a new book by Todd Myers, Eco-facts:

Just about every organo sacrament withers under Myers’ scrutiny. “Buying local” often means more dreaded greenhouse gas emissions from inefficient short-term shipment compared to the economies of scale when carloads of spuds ride the Burlington Northern Santa Fe across the country. “Certified Organic” means so much paperwork and oversight that mom-and-pop farms (another organo icon) get pushed out by corporate agriculture, which can afford to spend the time and resources satisfying bureaucrats.

Then there are “green jobs.” Solyndra is no outlier; governments are just very bad at picking winners and losers in the energy world. Myers documents the decline and fall of biofuel plants throughout the northwest. Inefficiencies destroy jobs. The Teanaway “Solar Reserve”, supported by an ever-increasing feed of taxpayer dollars, was supposed to be the “world’s largest”, supplying power to a grand total of 45,000 homes. That’s all you get?

John Plaza, CEO of the failed biofuel facility Imperium Renewables (you would think a better name would have helped) thinks it’s all the government’s fault. “What the industry needs,” he said, “is a two-fold support, a mandated floor, and incentives and tax policy to get the outcomes we’re trying for.” In other words, more expensive energy subsidized by you and me, and the government rigging the market. That will create jobs!

What is missing here (and everywhere else) is a comprehensive analysis of how much money the organo fads, follies and delusions cost us. Hopefully that will be in Myers’ next book. The incredible constellation of policy errors, wrongheaded logic and downright stupidity has to be extracting a dear cost from our very sick economy. It’s time to stop this. It’s time for you to read this book.

September 23, 2011

Solyndra: “They doubled down, just like some chump who lost his stake at the Vegas blackjack tables”

Filed under: Economics, Government, Politics, Technology — Tags: , , — Nicholas @ 10:55

Megan McArdle tries to figure out how Solyndra managed to spend nearly a billion dollars in two years:

By my count, Since September 2009, they borrowed $535 million from us to get their second fab up and running, raised $219 million in a private equity offering, got $175 million from issuing convertible promissory notes after their IPO was pulled, received $75 million in the last-ditch round where the DOE allowed their seniority to be subordinated, and maybe got a loan from a different bank. By the time they filed bankruptcy in August, my understanding is that they were basically out of cash.

The Washington Post‘s rather scathing new account, full of employees saying that post-loan, Solyndra started spending money like it was about to be discontinued, says the new facility for which we loaned them all that money cost $344 million to build. So it seems that in the space of two years, Solyndra managed to spend $344 million building a factory and $660 million . . . doing what?

September 18, 2011

Solyndra: not just crony capitalism as usual

Filed under: Environment, Government, Law, Technology — Tags: , , , — Nicholas @ 12:28

Andrew C. McCarthy shows the difference between the collapse of Solyndra and ordinary crony capitalist use of government funds:

Homing in on one of the several shocking aspects of the Solyndra scandal, lawmakers noted that, a few months before the “clean energy” enterprise went belly-up last week, the Obama Energy Department signed off on a sweetheart deal. In the event of bankruptcy — the destination to which it was screamingly obvious Solyndra was headed despite the president’s injection of $535 million in federal loans — the cozily connected private investors would be given priority over American taxpayers. In other words, when the busted company’s assets were sold off, Obama pals would recoup some of their losses, while you would be left holding the half-billion-dollar bag.

As Andrew Stiles reported here at NRO, Republicans on the Oversight and Investigations subcommittee say this arrangement ran afoul of the Energy Policy Act of 2005. This law — compassionate conservatism in green bunting — is a monstrosity, under which Leviathan, which can’t run a post office, uses your money to pick winners and losers in the economy’s energy sector. The idea is cockamamie, but Congress did at least write in a mandate that taxpayers who fund these “investments” must be prioritized over other stakeholders. The idea is to prevent cronies from pushing ahead of the public if things go awry — as they are wont to do when pols fancy themselves venture capitalists.

[. . .]

The criminal law, by contrast, is not content to assume the good faith of government officials. It targets anyone — from low-level swindlers to top elective officeholders — who attempts to influence the issuance of government loans by making false statements; who engages in schemes to defraud the United States; or who conspires “to defraud the United States, or any agency thereof, in any manner or for any purpose.” The penalties are steep: Fraud in connection with government loans, for example, can be punished by up to 30 years in the slammer.

September 16, 2011

Ontario’s clean energy Potemkin village

Filed under: Cancon, Economics, Politics, Technology — Tags: , , , , , , — Nicholas @ 10:50

John Ivison reports on a recent photo op by Premier Dalton McGuinty:

The solar energy company touted this week by Ontario Premier Dalton McGuinty as a flagship of the province’s clean energy economy has halted production because of slow demand.

Mr. McGuinty was flanked by Eclipsall Energy Corp.’s workforce when he visited its Scarborough solar panel plant Tuesday, but there was no mention that the production line is temporarily shut down. When my colleague Tamsin McMahon visited the plant she found the reception desk was empty, the cafeteria was closed and only a handful of employees milling around inside the sparsely furnished building.

Leo Mednik, Eclipsall’s chief financial officer, said the production line halt is because the company has already completed its current order book. “It’s no secret that the market is slow and there have been delays. That’s part of it — part of it is logistics. Our production team went through our purchased inventory a lot quicker than expected,” he said.

Not only is the plant not working to capacity: it’s only working at all because of government subsidies:

The Liberal government’s efforts have created jobs — though the 20,000 number touted by Mr. McGuinty seems highly questionable, far less the 50,000 he says will be created by the end of next year. In addition, they are hardly high wage, high skilled jobs the Premier claims (Eclipsall pays 20% over minimum wage to its workers, who assemble glass and solar cells imported from Asia, thereby qualifying for the Liberal Green Energy Act’s 60% domestic content rule).

The question is: how sustainable are these jobs? Mr. Mednik admitted that if the domestic content rule was removed, Eclipsall and other Ontario manufacturers would not be able to survive. “Frankly, it would be very difficult for any start-up to compete” against cheaper Chinese producers, he said.

He said it is a question of when, rather than if, the 60% threshold is removed. Both the European Union and Japan have taken the FIT program to the World Trade Organization and want the local content requirements removed. They claim this Buy Ontario provision is a prohibited subsidy. The FIT program might also soon become subject to a NAFTA dispute case, after American renewable company Mesa Power Group said it would file a complaint.

September 15, 2011

Why first-gen electric vehicles will be a hard sell for Canadians

Filed under: Cancon, Technology — Tags: , , — Nicholas @ 12:24

It’s not just that (at least in Ontario) we’re facing potentially huge electricity price hikes to pay for our new alternative energy strategy, it’s also that electric cars don’t handle winter weather very well:

On Wednesday, Jan. 26 a major snowstorm hit Washington D.C. Ten-mile homeward commutes took four hours. If there had been a million electric cars on American roads at the time, every single one of them in the DC area would have ended up stranded on the side of the road, dead. And, before they ran out of power, their drivers would have been forced to turn off the heat and the headlights in a desperate effort to eek out a few more miles of range.

This illustrates the biggest drawback of BEVs, which is not range, but refueling time. A few minutes spent at a gas station will give a conventional car 300 to 400 miles of range. In contrast, it takes 20 hours to completely recharge a Nissan Leaf from 110V house current. An extra-cost 240V charger shortens this time to 8 hours. There are expensive 480V chargers that can cut this time to 4 hours, but Nissan cautions that using them very often will shorten the life of the car’s batteries.

No doubt some conventional cars ran out of gas while trapped in the massive traffic jams that occurred in and around the nation’s capital the night of January 26. However, a two-gallon can of gasoline can get a stalled conventional car moving again in a few minutes. In contrast, every dead BEV would have had to be loaded on flatbed tow truck and taken somewhere for many hours of recharging before it could be driven again.

Nissan claims that the range of a Leaf is about 100 miles. However, in their three-month extended road test, Car and Driver magazine obtained an average range from a full charge of 58 miles. Cold weather and fast driving can shorten this to as little as 30 miles.

September 14, 2011

Solyndra’s $500m deal pushed through against OMB concerns

Filed under: Economics, Government, Politics, USA — Tags: , , — Nicholas @ 12:11

The need for President Obama to get a good press outcome may have trumped the official concerns of the Office of Management and Budget in loaning half a billion dollars to now-bankrupt Solyndra:

The Obama White House tried to rush federal reviewers for a decision on a nearly half-billion-dollar loan to the solar-panel manufacturer Solyndra so Vice President Biden could announce the approval at a September 2009 groundbreaking for the company’s factory, newly obtained e-mails show.

The Silicon Valley company, a centerpiece in President Obama’s initiative to develop clean energy technologies, had been tentatively approved for the loan by the Energy Department but was awaiting a final financial review by the Office of Management and Budget.

The August 2009 e-mails, released exclusively to The Washington Post, show White House officials repeatedly asking OMB reviewers when they would be able to decide on the federal loan and noting a looming press event at which they planned to announce the deal. In response, OMB officials expressed concern that they were being rushed to approve the company’s project without adequate time to assess the risk to taxpayers, according to information provided by Republican congressional investigators.

September 7, 2011

How much more will “green” renewable power cost?

Filed under: Britain, Economics, Environment, Government, Technology — Tags: , — Nicholas @ 09:37

In short, lots more than ordinary power generation:

The Telegraph has obtained a policy document, dated July, that seems to suggest that the government is considering a walk away from the most expensive renewables — and now we can see the full copy online. Two No 10 advisers challenge the Department of Energy and Climate Change’s utopian cost predictions, and say energy bills will be much bigger than we’ve been told.

What isn’t in contention is that energy itself will be much more expensive. DECC’s argument is that we’ll all start insulating our homes more — so our utility bills won’t reflect the higher per-unit energy costs. No 10’s energy expert thinks this is nonsense.

The Cameron advisors also suggest that government policy should be “open” to ditching some of the most expensive renewables — such as offshore wind power.

What’s the real cost of wind and solar?

     The former power director of the National Grid, Colin Gibson, now estimates that the lifetime per unit cost of onshore wind is £178 per megawatt hour (MWh), and offshore wind at £254/MWh. Nuclear is £60/MWh. The figures DECC provides don’t account for the huge additional transmission costs of wind.

     Note how much more expensive reality is than the clean, green vision. Government figures reckoned onshore wind cost £55/MWh and offshore wind £84/Mwh [. . .] compared to gas at £44/Mwh. Politicians seeking to dump the renewables policy could argue that green-minded civil servants sold them a pup. They’d be right.

September 4, 2011

James Delingpole forced to offer an apology

Filed under: Britain, Environment — Tags: , , — Nicholas @ 11:45

Yes, it’s true. Delingpole made an error in a recent column and has to make a full apology for the error:

It has been brought to my attention that this blog owes Sir Reginald Sheffield, Bt. an apology. In a recent column entitled Green Jobs? Wot Green Jobs? (Pt 242), I carelessly suggested that Sir Reg — beloved dad of the famous environmentalist “Sam Cam”; distinguished father-in-law of the Prime Minister of Great Britain and Northern Ireland, no less — is making nearly £1000 a week from the wind turbines on his estates.

The correct figure is, of course, nearly £1000 a day.

In other words, Sir Reginald is making the equivalent of roughly 1000 looted widescreen plasma TV screens every year from the eight 400 foot wind turbines now enhancing the view for miles around on his 3,000 acre Normanby Hall estate, near Scunthorpe.

There will be those who suggest that my mistake is a resigning matter. I do share their concern. However it is my view that if a journalist is going to resign on a point of principle these days, it has to be over something immeasurably trivial, rather than over something merely quite trivial. What I do nevertheless agree is that I owe Sir Reginald Sheffield, Bt, an apology.

A big apology.

UK “will lose 2 to 3 per cent GDP a year for around 20 years” on renewable energy subsidies

Filed under: Britain, Economics, Environment, Technology — Tags: , , , — Nicholas @ 11:01

A report in The Register says that the subsidies for green renewable energy will be a big net drain on the national economy:

The UK’s headlong rush into renewable energy — one ignored by the rest of the world — will hit British jobs and then general incomes, an economic study finds.

The report, The Myth of Green Jobs by economist Professor Gordon Hughes of Edinburgh University, examines the long-term impacts of subsidising expensive “green” renewable energy projects. It says that if the UK continues to do so, it will lose 2 to 3 per cent GDP a year for around 20 years. If reducing CO2 emissions is your goal, says Hughes, your economy really can’t afford renewable energy.

[. . .]

“All forms of green energy tend to be substantially more expensive than conventional energy, so there is a trade-off between higher costs and lower emissions,” writes Hughes. “This trade-off is not specific to green energy, since there are many ways of reducing emissions of greenhouse gases. Hence, the starting point of any assessment of such programmes should be the total cost per tonne of carbon dioxide saved — or its equivalent — which will be incurred by relying upon different measures or policies to reduce emissions.”

September 1, 2011

“It is rather amazing how fast Solyndra wasted over half a billion US taxpayer dollars”

Filed under: Environment, Government, Technology, USA — Tags: , , , , — Nicholas @ 09:34

Mike “Mish” Shedlock looks at the breakneck pace of loss at Solyndra, a solar power company that just went bankrupt:

The federal government should get out of the business of picking technology and “green” winners. Government backing of alternate energy companies has been nothing short of disastrous.

A solar energy firm touted by the administration in 2010 as a as a “gleaming example of green technology” today announced bankruptcy. 1,100+ employees will be fired.

[. . .]

The “seen” math is simple enough. $535 million divided by 1,100 is roughly $486,363 per job saved, now job lost.

That is just the “seen” consequence. The “unseen” consequences are not directly calculable but by giving Solyndra money, other companies that the free market would have preferred have been harmed, perhaps permanently harmed.

Although Obama clearly rushed this pathetic company for a nice photo-op, this is not a simple case of the president failing to do his homework as the GAO implies. The government has no business promoting this kind of crap in the first place.

In this case, it is rather amazing how fast Solyndra wasted over half a billion US taxpayer dollars, so fast I suspect fraud.

August 7, 2011

Wind turbines totally dominate the skyline over Wolfe Island

Filed under: Cancon, Technology — Tags: , , — Nicholas @ 18:39


Click to see full-size (very wide) image

I took this photo from the Wolfe Island ferry on Friday. It amazed me how many wind turbines were in view (32, I think). I kept having images of James Blish’s “spindizzies“.

July 4, 2011

British Green activist recants opposition to nuclear power

Filed under: Britain, Environment, Technology — Tags: , , — Nicholas @ 09:51

Unlike Germany, which has announced it will be shutting down its nuclear power plants, Britain is considering a new generation of plants to provide an even greater share of their electricity needs. Even a few green activists are changing their tune:

Also, as much as Greens are enthusiastic about solar electricity, in cloudy countries such as ours it is extremely inefficient and expensive. Nuclear power, on the other hand, is one of the cheapest ways of producing electricity, and it is much safer than many environmentalists would have us believe.

The objection of environmentalists to nuclear power — fears about the dangers of nuclear waste and the cost of decommissioning it — are overblown, which explains why many people don’t like the Greens.

[. . .]

Solving many of the world’s most critical environmental challenges will, in some cases, involve doing the exact opposite of what most environmentalists want.

Rather than retreating into hair-shirt austerity, I believe that, just as technology got us into this mess, technology is vital to get us out of it.

That means embracing some things that will make a lot of Green believers choke on their organic muesli.

It has taken me a long time to reach this conclusion. I used to passionately oppose not only nuclear power but GM crops. I once even threw a pie in the face of a Danish scientist who dared to question the orthodox environmental line. So what changed?

Through research, I found that much of what I believed about environmental issues had little, if any, basis in science. Put simply, though my concerns were right, my solutions were wrong.

June 27, 2011

Stephen Gordon: The “broken window” fallacy of “green” jobs

Filed under: Economics, Environment, Technology — Tags: , , , — Nicholas @ 09:51

It’s always nice to see a reference to Frédéric Bastiat in a modern day setting:

But it is possible to oversell the green jobs theme. Job creation should not be a goal of environmental policy, no more than it should be a policy goal in the fields of health or national security. If, instead of hiring people, we could use magic to stop disease, crime and environmental degradation, we would. Pointing to jobs ‘created’ to fix these problems is an error that Frédéric Bastiat identified in his ‘parable of the broken window’. Broken windows generate work for glaziers, but that doesn’t mean that breaking windows will increase national income.

An often-quoted statistic goes something like this: “wind energy produces 27 per cent more jobs per kilowatt hour than coal plants and 66 per cent more jobs than natural gas plants”. This could well be true, but it is hardly a strong argument in favour of the employment opportunities that would be generated by investing in wind energy: hiring more people to produce less energy is not a strategy for prosperity. Similar gains in employment could be obtained by outlawing mechanical excavators so that all digging must be done by hand. It may make sense to encourage the development of wind power, but increased employment is most emphatically not one of the reasons for doing so.

June 11, 2011

QotD: OPEC’s 50-year fishing trip

Filed under: Economics, Government, Middle East, Quotations, USA — Tags: , , , — Nicholas @ 11:56

The petroleum-exporting countries have kept America as a gigantic fish on a steel line for nearly 50 years, reeling it in slowly, and letting it out (relaxing oil prices), when the United States made purposeful noises about raising domestic production, cutting consumption, and going to alternate sources. As soon as OPEC fine-tuned the fishing reel, the great fish went with the docility of the addicted consumer back to its default position mainlining on foreign oil at steadily increasing prices and in ever larger quantities. Every president starting with Richard Nixon warned of the danger in this addiction, but none has done anything useful about it. There must be an emphasis on cheap and plentiful natural gas, more nuclear (with maximum safety standards), more off-shore drilling (with maximum environmental-protection arrangements), and higher gasoline taxes to raise revenues and restrain use. All of this will bring down the international price and reduce the amount of money available for the Iranians, Saudis, Venezuelans, and others to finance terrorism around the world, and will ultimately reduce U.S. defense costs. None of this has been done, though the need for it has been obvious for decades.

Conrad Black, “Why America is suffering”, National Post, 2011-06-11

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