TORONTO - The Government of Ontario's recent announcement to include nuclear energy in the province's electricity supply mix is the right move, says Greenpeace co-founder and former leader Dr. Patrick Moore. "This decision means Ontario will be able to meet its energy needs, while supporting a non-greenhouse-gas-emitting power source that can help alleviate reliance on polluting fossil fuels," said Moore.

"Nuclear energy is clean, safe, reliable and cost-effective," said Moore. "Ontario's decision to reinvest in its nuclear energy infrastructure while also supporting renewable energy and conservation will mean a cleaner, healthier environment for all Ontarians," said Moore.

"Ontario is joining many other countries in a nuclear renaissance that recognizes the importance of pollution-free nuclear energy in meeting growing demand globally," said Moore.

"Canadians are particularly well suited to participating in this renaissance, so we're very pleased to see Ontario support leading-edge nuclear energy technology," said Moore.

Despite his strong support of the Ontario decision, Moore had some concern over the government's plan to place a cap of 14,000 megawatts on the production of nuclear energy.

"The 14,000 megawatt cap on nuclear energy is a concern because it limits Ontario's ability to provide clean, stable base-load power as demand increases over time," said Moore.

"The government is relying on conservation measures to reduce demand, and while that's good, we must also recognize that Ontario is a growing, prosperous economy with a large manufacturing and industrial base," said Moore.

"Ontarians are already doing their part their part to conserve energy," said Moore.

"The Ontario economy has grown by 45 percent in the past decade while energy consumption has grown by only 6 percent -- if that's not a measure of energy efficiency, I don't know what is," said Moore. "Conservation and renewables will only get you so far," said Moore. "Nuclear energy is the only clean energy source that can meet the province's increasing demand, particularly as the coal-fired power plants get phased out," said Moore.

"We would ask the Minister of Energy Dwight Duncan to reconsider this 14,000 megawatt cap because it hinders unnecessarily Ontario's ability to grow its energy supply," said Moore.

TORONTO - The Association of Power Producers of Ontario (APPrO) welcomed today's announcement on Ontario's supply mix, saying that they are confident the power generation industry can bring forward the kind of supply contemplated by the government, on time, on budget and for a reasonable cost, said APPrO President David Butters. He added that development of this new generation will mean billions of dollars worth of new investment and jobs in Ontario, bringing environmentally sustainable new technologies and innovation, along with new jobs and a host of economic opportunities.

Butters said the industry also applauds the government's decision because it signals a focus on results, and limits the risk borne by consumers. "We've said before that it's time for action. With this decision, and with previously announced procurement initiatives, the government is making progress on closing the supply gap and assuring an electricity supply in Ontario that is safe, reliable and economically sound," he said. "Today's supply mix direction is a fundamental element in an Integrated Power System Plan for Ontario which will bring the province much closer to a longer term energy future based on independent and comprehensive forward planning processes - not short term thinking".

Butters said that APPrO members will do their part to provide new generation solutions, primarily utilizing private sector resources. "We look forward to working with the OPA and other agencies to ensure that Ontario's power supply needs are met at the best cost, both from new resources and by maximizing the output and efficiency of existing generation resources." But it is important that the supply mix also place a strong emphasis on conservation and demand management, Butters noted. "These are essential parts of the picture, and everyone will benefit from conservation and the development of economic opportunities for increased efficiency."

He warned that there are other challenges which must be met as well. "The greatest barrier is neither technology nor financing, but permitting and approval requirements. While the government has now clearly identified expanding the transmission capacity from Bruce County and surrounding area as a priority, the sooner we can arrive at an enduring solution to the all-to-familiar problems around approval processes and public support for vital energy infrastructure projects, the sooner we can develop and build what's needed, when its needed and at a price Ontario can afford," Butters concluded.

Securing Reliability For Ontario's Long-Term Electricity Supply QUEEN'S PARK, ON - Energy Minister Dwight Duncan directed the Ontario Power Authority (OPA) on June 13 to proceed with its recommended 20-year electricity supply mix plan, with some revisions.

The plan achieves a healthy balance by moving away from coal in favour of new nuclear power and renewable energy. The government has set targets that will double energy efficiency through conservation and double the amount of energy from renewables by 2025.

The government has directed Ontario Power Generation (OPG) to undertake feasibility studies for refurbishing units at the Pickering and Darlington sites. OPG has also been directed to begin the work needed for an environmental assessment for the construction of new units at an existing nuclear facility. Nuclear is expected to continue to be the single-largest source for Ontario's electricity in 2025.

The government has accepted the advice of the Independent Electricity System Operator in their June 9 report that indicates a need for 2,500 - 3,000 megawatts of additional capacity to maintain system reliability. Therefore, further delays will be necessary in the government's plan to replace coal-fired generation completely with cleaner sources of energy.

The government is referring the question of how to best replace coal in the earliest practical time frame to the OPA. The OPA is also being asked to recommend options for cost-effective measures to reduce air emissions from coal-fired generation.

The government will continue with the plan announced in its 2006 Budget to establish a bio-energy research facility associated with the Atikokan station.

The government has also accepted the advice of the OPA that natural gas should only be used to meet peak demand in high-efficiency applications and to meet local reliability need when no alternative is available.

Since the government received the OPA recommendations in December 2005, it has consulted extensively with the public, stakeholders, the electricity industry, the IESO and the OPA itself.

The government is acting on the advice of the OPA, the agency that studies Ontario's long-term energy needs and is responsible for carrying out the government's electricity plan.

"We are taking action to secure the electricity supply Ontarians need today and have set a balanced plan for meeting growing demand in the years ahead," Duncan said. Other features of the government's plan include: <<

- Planning to ensure adequate baseload electricity supply while limiting the future use of nuclear power to today's installed capacity level of 14,000 megawatts.
- Directing OPG to begin a federal approvals process, including an environmental assessment, for new units at an existing facility. Although the government prefers to use Canadian companies and technology, its first obligation is to the people of Ontario. Decisions will be made based on the best technology offered at the best price to Ontario ratepayers.
- Directing OPG to begin a feasibility study on refurbishing its existing nuclear facilities that will include a review of the economic, technological and environmental aspects of refurbishment. As part of this initiative, OPG will begin an environmental assessment on the refurbishment of the four existing units at Pickering B.
- Doubling the amount of electricity drawn from renewable sources, bringing the total to 15,700 megawatts by 2025.
- Doubling the conservation efforts suggested in the OPA's report, to reduce electricity demand by 6,300 megawatts by 2025.
- Expanding the transmission capacity from Bruce County and surrounding area to facilitate the transmission of electricity from several new wind farms and the Bruce facility to Ontario homes and businesses.
"We remain committed to replacing coal-fired generation in Ontario," Duncan said. "We have made significant progress in reducing greenhouse gas emissions and ensuring cleaner air to improve the standard of living and quality of life for all Ontarians."

In setting out a balanced plan for ensuring Ontario's energy needs now and into the future, the government considered the advice of the OPA, and was guided by a number of core principles:

- Ensuring reliability of energy in Ontario over the long term
- Ensuring stable energy prices for Ontarians
- Supporting Ontario businesses and creating a climate for future investment
- Increasing the use of green, renewable energy
- Integrating greater energy efficiency through conservation into Ontario's long-term energy planning
- A commitment to replacing coal-fired generation

The government is confident the directive to the OPA meets both the core principles and the long-term energy requirements of the province to enhance the standard of living and the quality of life for all Ontarians. The directive is the basis of the Integrated Power System Plan. This 20-year plan, revised every three years, will be submitted to the independent Ontario Energy Board for review and approval.

"We are building a new energy future for Ontario," Duncan said. "Our vision is of an Ontario with a safe, clean, reliable and affordable supply of electricity that will power our communities, our businesses and our homes. It is a balanced approach to power the continued growth and prosperity of our province."

WATERLOO -- A team of University of Waterloo students placed first in several categories of Challenge X: Crossover to Sustainable Mobility, a three-year North American competition to develop a sustainable crossover vehicle.

The University of Waterloo's Alternative Fuels Team (UWAFT) entry was a hydrogen fuel cell hybrid Chevrolet Equinox. UW's vehicle was unique in that it combined an alternative fuel powertrain with hydrogen and hybrid technologies to reduce emissions and environmental impact.

The UW team received top prizes for the following categories: best control strategy presentation; first place in the GMability outstanding outreach program; best website; best K-12 educational outreach; and best community outreach.

As well, the team finished in second place in both the freescale semiconductor: silicon on the move category and the Mathworks: crossover to model-based design category. The team also won the Spirit of the Challenge award.

During the first phase of the competition last year, UWAFT's detailed vehicle design process won eight of 10 categories and earned the team first place.

"We've worked very hard this past year," said Chris Mendes, UWAFT co-captain and lead mechanic. "The real value of this competition is the first-hand exposure we get to the advanced technologies being developed for the vehicles of tomorrow."

"I congratulate the University of Waterloo team on its success in this very challenging competition," said Gary Lunn, Canada's federal minister of natural resources. "The students on the team have shown that they are ready and able to create the next generation of automobiles using the latest technologies. These bright, innovative thinkers will also help put Canada at the forefront of automotive engineering, developing cleaner, more efficient vehicles that will have environmental and economic benefits for our country."

UWAFT's faculty adviser, Roydon Fraser, praised the team for building the first fully functional full-size, university-built fuel cell vehicle. Fraser is a professor of mechanical engineering with an interest in combustion engines and alternative fuels.

The UW team, which spent the past year integrating and refining advanced vehicle technologies into its vehicle, tested its work against 16 other teams during the second round of the competition last week, at the GM Proving Grounds in Mesa, Ariz. The UW team placed 14th overall.

The teams competed in more than a dozen static and dynamic evaluations, including tests for towing capacity, acceleration, off-road performance, greenhouse gas impact, total well-to-wheels fuel economy, emissions and consumer acceptability. Teams also gave oral presentations and submitted a technical paper.

The annual Challenge X competition, organized by General Motors Corp. and the U.S. Department of Energy's Argonne National Laboratory, is inspiring hundreds of engineering students with a real-world application of their knowledge and skills.

It helps the next generation of engineers develop a greater awareness of automotive technologies for the 21st century. It also shows how cooperation of academia, industry and government is a good way to developing more energy-efficient and greener automotive technologies.

Major sponsors of the UWAFT team are Natural Resources Canada, the Ontario Ministry of Research and Innovation, Hydrogenics Air Liquide, Research In Motion and Marathon Technical Services.

Implement a broad-based and sustainable conservation and demand management strategy to significantly reduce the current and future electricity use to allow time for this consultation to take place;

Complete a comprehensive assessment of the technical and economic potential for energy conservation, demand management and renewable energy, and develop a long term strategy to maximize their use in Ontario; and

Reduce future energy demand by including stringent new energy efficiency standards in the Ontario Building Code.

If you are a resident of Waterloo Region, please contact the Regional Chair and your councillor and urge them to support this motion. (Follow this link for a list of councillors http://www.region.waterloo.on.ca/web/region.nsf/DocID/7D8DA5F9C5A28DB385256AF700553217?OpenDocument).

If you live outside the region, ask your municipal government to also consider such a motion in order to increase the security of supply in your region and to reduce the health and environmental impacts of electricity generation.

Under the agreement, Blue Line Innovations will be supplying 30,000 of the company's PowerCost Monitors to Hydro One. Hydro One will be offering the monitors to their customers in northern Ontario, free of charge, on a first come first served basis. Hydro One customers in northern Ontario will be receiving information on how to order the monitors by way of a special insert in their next bill.

Called the PowerCost Monitor(TM), the device is simple to install. The homeowner attaches the sensor component to the hydro meter on the outside of the home and it reads the meter. It then sends a signal to a small companion display unit, which can sit atop the kitchen counter or any other room in the house. The display unit shows the homeowner how much money is being spent on electricity from moment to moment. There are no wires used to connect the sensor component to the display unit in the home.

"We are always interested in providing Hydro One customers innovative ways to help them save electricity and reduce their electricity bills" explained Tom Parkinson, President and CEO of Hydro One. "Blue Line's PowerCost Monitors(TM) have proven that they can help people conserve electricity and we are pleased to offer this unique conservation solution to our customers."

Danny Tuff, CEO of Blue Line Innovations, commented on the agreement
saying: "This is an exciting development for our company. Our product gives people the data they need in real time to help them reduce electricity consumption in their homes and to save money. We are looking forward to providing our monitors to the citizens of Ontario through our agreement with Hydro One."

About Blue Line Innovations:

Blue Line Innovations is a Newfoundland and Labrador based firm offering innovative conservation and demand-side management solutions to the energy sector. Key divisions of Blue Line Innovations are involved in product development, marketing, systems engineering and manufacturing. Blue Line is the only developer and provider of this innovative technology in Canada. Given the global focus on energy conservation, Blue Line Innovations is well positioned to support individuals, utilities and governments in achieving their conservation goals.

For more information on how to order the PowerCost Monitor visit www.save-electricty.ca or call toll free 1-866-607-2583.

The IESO Report confirms that the McGuinty Government is on-track to close the Atikokan and Thunder Bay coal-fired power plants in 2007.

The IESO Report confirms that the planned in-service dates for the two new high-efficiency natural gas-fired power plants (Greenfield Energy Centre and St. Clair Generation Project), which will replace the Lambton coal-fired power plant, are 2008. Therefore the Lambton coal-fired power plant can be phased-out in 2008 or 2009.

The IESO’s revised planning assumptions which reveal the need for an additional 2,500 to 3,000 MW of peaking capacity (i.e., capacity that is needed during approximately 2% of the year) also does not entail the need to delay the phase-out of coal-burning at Nanticoke. Rather, to meet this need for additional peaking capacity and to permit the phase-out of coal burning at Nanticoke by 2009, Premier McGuinty should:

Direct OPG to convert the Nanticoke coal-fired boilers to burn natural gas. This will provide Ontario with an additional 4,000 MW of peaking capacity at a cost of only $80 to $240 million.

Direct the Ontario Power Authority (OPA) and Hydro One to aggressively promote energy conservation.

In June 2005 Energy Minister Dwight Duncan directed the OPA to implement a demand response program to pay electric utilities and large industrial, commercial and institutional customers to shift some of their electricity consumption from peak to off-peak periods on peak demand days. Despite the fact that Ontario has already experienced 11 smog days in 2006, the OPA has still not implemented this program. Furthermore, while the OPA says it will have this program up and running by July 1st, it is not willing to pay Ontario consumers as much money to reduce their demand on smog days as the IESO is willing to pay U.S. power companies for dirty coal-fired electricity imports.

Meanwhile, Toronto Hydro has developed an innovative, voluntary peakSAVER program which cycles residential central air-conditioners on and off to reduce Ontario’s peak day electricity demands. If every residential central air conditioner in Ontario were to enroll in a peakSAVER program like Toronto Hydro’s, we could reduce our peak day demands by up to 2,000 MW. Unfortunately, Ontario’s largest electric utility, Hydro One, has still not established a peakSAVER program to help reduce Ontario’s peak day demands.

Please contact Premier McGuinty, at Dalton.Mcguinty@premier.gov.on.ca and ask him to keep his promise to phase-out our dirty coal-fired power plants by 2009.

Jack Gibbons
Ontario Clean Air Alliance

University of Guelph physics professor Ernie McFarland will give the Herzberg Memorial Public Lecture Sunday in conjunction with the 61st annual congress of the Canadian Association of Physicists (CAP) at Brock University.

McFarland’s lecture, “Energy: Where on Earth Are We Going?,” will look at the physics of alternative energy sources. He will discuss the consumption and environmental consequences of fossil fuels, as well as the current and future use of wind, solar and nuclear energy. The lecture begins at 7 p.m.

“I plan to challenge the widely held view that physics is an esoteric science that has little to do with the ‘real world,’” he said, adding that his lecture will be of interest to physicists and non-physicists alike.

McFarland is the co-author of the book Energy, Physics and the Environment (with retired Guelph professor’s Jim Hunt and Iain Campbell), which provides a foundational quantitative account of energy and related issues. He has also written recent articles about geothermal energy and nuclear energy.

A recipient of the CAP Medal for Excellence in Undergraduate Teaching, he also holds a 3M Teaching Fellowship, which honours outstanding leadership in teaching, education and academic program development.

The CAP congress, which is expected to attract more than 500 national and international delegates, will include a workshop for high school teachers on solar energy led by Nobel laureate Walter Kohn. It will also feature more than 150 invited talks and some 400 presentations, including a session on “Communicating Effectively With Politicians”with Preston Manning and Peter Adams and an address by Suzanne Fortier, the new president of the Natural Sciences and Engineering Research Council.

As bio-ethanol is a renewable fuel derived from plants (such as sweet sorghum, cassava, cereals, sugar beet etc.) or biomass (such as wood waste), the primary environmental benefit is the reduction of CO² emissions. The use of bio-ethanol can lead to up to a significant reduction in overall CO² emissions compared to a traditional petrol only engine. Bio-ethanol used as part of the fuel, by blending with petrol, for a motor vehicle is called fuel-ethanol. Bio-ethanol can be blended in various proportions in petrol.

Sales of refined petroleum products totalled 7 399 300 cubic metres in April, down 2.7% from April 2005. Sales decreased in six of the seven major product groups, with diesel fuel oil down 76 400 cubic metres or 4.0%. Petro-chemical feedstocks sales rose 46 900 cubic metres or 14.4%, while motor gasoline sales decreased 45 500 cubic metres or 1.4%.

Sales of premium (-6.7%) and sales of regular non-leaded gasoline (-1.2%) fell while mid-grade gasoline (+7.8%) rose from April 2005.

Year-to-date sales of refined petroleum products at the end of April reached 31 432 400 cubic metres, down 4.1% from the same period of 2005. Sales fell in six of the seven major product groups, with the largest decrease in heavy fuel oil (-548 500 cubic metres or 19.7%).

In making its announcement, S&P said the change in the short-term rating

reflects: a significant improvement in OPG's ability to manage cash flow pressures, a formal process for project review and for obtaining financing from the Ontario Electricity Financial Corporation (OEFC), and a reduction in intra-month cash volatility through better working capital management. For more information refer to the S&P press release of May 25.

The announcement follows S&P's decision on September 27, 2005 to affirm OPG's long-term corporate credit rating at 'BBB+' and revise its outlook to "positive" from "developing".

Ontario Power Generation Inc. is an Ontario-based electricity generation company whose principal business is the generation and sale of electricity in Ontario. Our focus is on the efficient production and sale of electricity from our generation assets, while operating in a safe, open and environmentally responsible manner.

"China, India and Brazil must reduce their use of energy over the next two decades in order to avoid a drastic increase of gas emissions which would spawn the greenhouse effect, according to a group of international experts," reports Agencia EFE (Spain).

"Data from an international study published Monday after having been worked on during the last four years under the Three Country Energy Efficiency Project (3CEE) run by the United Nations and the World Bank are overwhelming. According to present energy consumption and use of traditional energy sources, in a single generation - by 2030 - China, India and Brazil will have duplicated their use of energy and its gas emissions that produce the greenhouse effect. ."

The Wall Street Journal adds that the 3CEE ". focuses on spurring local financing for retrofitting factories and commercial and public buildings to improve their energy use. The 3CEE estimates that such retrofitting such as adding high-efficiency lighting, heating or cooling systems would reduce the three countries' energy use by a quarter by 2030. But World Bank Consultant Jeremy Levin said that estimate is based on 'high-end, optimistic' scenarios, and a large-scale adoption of the program is essential for it to have any measurable effect. ."

Reuters notes that "World Bank Lead Energy Specialist, Robert Taylor who led the study said 'cutting energy waste is the cheapest, easiest, fastest way to solve many energy problems, improve the environment and enhance both energy security and economic development.' .

'The key source of financing is the local banking sector,' said Levin, adding that banks have yet to realize the potential for lending to unglamorous-sounding energy efficiency schemes. 'Energy efficiency may not have the same sizzle as alternative solutions such as renewable energy,' he told Reuters. Still, cutting waste would be the most important path to improving energy efficiency until about 2030. ."

The Financial Times (UK) reports that Senior Environmental Specialist at the World Bank, Chandrasekar Govindarajalu said, 'commercial banks in these countries are generally unfamiliar with financing projects designed to achieve cost savings, rather than develop new product lines or other tangible assets.' Yet companies could reap returns on investment of between 20 and 40 percent through energy efficiency projects, he said. . There are precedents. In Eastern Europe, the European Bank for Reconstruction and Development has built energy efficiency into its lending criteria for many projects. ."

Dow Jones writes that ". the 3CEE has provoked some changes, according to Levin. 'It's really helped shrink the gap between the energy efficiency practitioners and the financiers,' Levin said. 'At the beginning, they were almost speaking different languages - the practitioners had the projects but couldn't get the financing; the banks were getting all these submissions that didn't meet their needs.' After a series of international workshops, most recently in Paris, there has 'most certainly' been a change in attitude, Levin says. The State Bank of India has launched its own scheme for financing energy efficiency projects, and has been copied by four other Indian banks.

Many businesses have also been slow to adopt efficiency measures, although investments soon pay for themselves in a matter of months and come with a host of economic, environmental and social benefits at a local level. Lack of awareness of newer, more efficient technologies could partly be to blame, but Levin says some companies could be a victim of their own success. 'Maybe they're growing so fast, they're aware of [efficiency measures] but honestly don't have time to focus on these things.' Even if they do, these developments will barely make a dent in the three countries' vast energy appetites. ."

"Chronic power shortages across Africa are undermining investment, industrial development and economic growth and keeping the poorest continent poor, ministers and bankers said on Thursday," reports Reuters.

"Longstanding shortages are being compounded by high oil prices with some countries, which import oil products to generate power, facing rolling blackouts to curb spending. 'Go around Africa today and you see the energy crisis, the impact on business,' African Development Bank President Donald Kaberuka said at the bank's annual meetings in Burkina Faso.

Several schemes aim to build regional power grids to ensure reliable supplies and a spread of sources like hydropower and coal and oil stations in case of drought or fuel shortages. But progress is slow, with generating capacity struggling to meet demand and much of rural Africa without mains electricity.

'All our teams, when they come to Africa, they do hear the concerns that power is really a big bottleneck,' Sanjeev Gupta, Assistant Director of the International Monetary Fund's Africa Department, told Reuters. He said energy intensity -- a measure of the electric power used per unit of economic output -- was rising in Africa, contrary to the trend in the rest of the world where increasing industrial efficiency is reducing energy intensity.

Poor power supplies prevent factories and other enterprises from growing as they have in other regions, delegates said. They said poor power, phone and road services contributed to the 'missing middle' -- referring to the fact Africa has a number of large conglomerates and millions of tiny businesses owned by families or individuals, but little in between. The lack of middle-level enterprise compounds chronic unemployment in Africa, where economic growth of more than 5 percent is due in part to high oil and commodities prices rather than job-creating industry. ."

Agence France Presse adds that ".Kaberuka, called on African leaders to help fight corruption and 'to create a political and legal environment favorable to foreign investment.' He said the bank had cancelled $9 billion in debt owned by 14 African countries in the past year. Liberian President Ellen Johnson-Sirleaf said her country awaited support from the bank to rebuild its war-shattered economy, while Burkina Faso's Blaise Compaore insisted on the urgency of good governance of the African states. Ivory Coast Prime Minister Charles Konan Banny briefed the assembly on the crisis in his divided country, saying the peace process was moving ahead. ."

The Daily Monitor (Ethiopia) writes that ". speaking to journalists in Ouagadougou ahead of the 17-18 May, 2006 Annual Meetings of the bank Group, Kaberuka pointed to some encouraging indicators: higher growth rates in both oil and non-oil producing economies, improved macroeconomic management and overall governance, and a significant decline in areas of active conflict, according to a press release. Kaberuka said the continent had registered an average economic growth of 5 percent in 2005, with oil and mineral producing countries growing at an average 8 percent and the non-oil producing countries registering growth rates of about 4.5 percent.

Kaberuka further said that while Africa was not where it should be and current rates will not result in the region attaining the Millennium development Goals, Africa was definitely turning the corner. Addressing questions on current reforms in the bank, the President spoke of the institution's solid financial situation and its growing capacity to bear risk, all of which should bring benefits to its regional member countries. He noted, however, that the bank also needed to adapt to new demands and the new challenges facing Africa, revising its structures, processes and operations. ."

Increased ethanol consumption has both positive and negative effects on the chemical industry, because ethanol is increasingly replacing the fuel additive MTBE. The two largest MTBE manufacturers, Lyondell with 20% and Huntsman with 15% market share, would suffer from this development, according to Citigroup.

The stock market appears to have a different view of matters: increases of 7.2% in the Lyondell share price and 10.8% in Huntsman since the beginning of the year, counters warnings to a certain extent. A successful search for a non-dangerous chemical replacement could give both shares a further boost.

BIELEFELD, Germany - The green energy of the future: A German-Australian research team has succeeded in breeding algae, which produce hydrogen in previously unheard-of quantities.

Amid rising oil prices and dwindling energy reserves, a genetically altered alga is now nourishing visions of an environment-friendly supply of energy.

Researchers from the University of Bielefeld in Germany and the University of Queensland in Brisbane, Australia, have genetically changed the single-cell green alga "Chlamydomonas reinhardtii" in such a way that it produces an especially large amount of hydrogen.

This gas can then be burned to produce energy. In contrast to the use of fossil-based fuels such as petroleum, coal or natural gas, no carbon dioxide is produced, but instead only water.

It has been known for a long time that certain algae can produce hydrogen during the photosynthetic process, explains Bielefeld biologist Olaf Kruse. But the catch was efficiency, as one litre of alga produces only about 100 ml of hydrogen. "Then it's over, because the cells die off."

But the genetically altered variant boosts this up to half a litre of hydrogen. By Kruse's estimates, it can, in the long run, produce five times the volume made by the wild form of alga.

Economic feasibility with regard to algae sets in only when the energy efficiency - the conversion of sunlight into hydrogen - reaches 7-10 percent. But alga in its natural form achieves at most a meagre 0.1 percent. The new "turbo-alga" has now come up to 1.6-2.0 percent.

"We have not reached our goal yet," says Kruse, calmly announcing: "We want to reach it in five years."

At the end of the development process could be a biological fuel cell in which the alga produces the necessary hydrogen directly at the site of consumption. A motorist would then, instead of a stop at the petrol pump, need only to have an alga power plant on board.

This is naturally a futuristic vision.

Kruse has been working on such a "turbo-alga" together with Ben Hankamer of the Institute of Molecular Bioscience at the University of Queensland since the year 2001. From a pool of 20,000 random mutations, the scientists have selected 20 algae, ultimately coming up with a genetically altered mutation called "Stm6".

Meanwhile, at the Technical University in Karlsruhe, a prototype of a bio-reactor containing 500-1,000 litres of algae cultures is being developed. The reactor is to be used to prove the economic feasibility of the system in the next five years.

"What is of decisive importance is finding a way of producing energy for which we won't need to import any resources," Kruse says. On the basis of calculations, a reactor shaped like a cube measuring three metres per side and filled with algae could supply a two-person household with their energy needs.

Decentralised reactors with a million litres of alga cultures could in the future supply entire districts of 1,000 households.

"Hydrogen is absolutely the energy of the future," Kruse stresses. "A precondition however is that certain things must be improved. In the next 20 years, we must have built up a carbon dioxide-free alternative source of energy."
Copyright 2001-2005 newkerala.com

“Energy is the hinge of the world economy and its security cannot be taken for granted,” the report argues, laying out four critical sets of questions for the institutions, companies and decision-makers whose actions will shape the future of energy. Energy security must evolve to reflect a far more complex integration of economies, infrastructures and political alliances, and be able to respond to unexpected disruptions such as natural disasters and geopolitical unrest.

The New Energy Security Paradigm tracks changes in the original elements of energy security:

Global oil supply and demand – Oil production capacity is concentrated in 15 countries – nine of them OPEC members – which will control 58% of world liquid production capacity by 2015. National oil companies have joined in the competition for resources and will require new infrastructure to bring product to market. Oil demand is rising quickly in Asia and Brazil, half of global oil demand growth over the next ten years being forecast to occur in the Asia Pacific. The OECD countries, which accounted for 70% of demand in 1974, today represent just 60% of global demand.

Dash to natural gas – Demand for natural gas, the fuel of choice for new power generation, has more than doubled in the past 30 years, driven largely by new technology. Liquefied natural gas (LNG), with more supply flexibility than point-to-point pipelines, will claim 17% of the global market by 2020, up from 7% in 2003.

Power demand growth – With economic growth driving global power demand, markets are shifting between state ownership and deregulated commercial structures. However, if markets are perceived to be unreliable, a swing back towards greater state control of power markets as well as oil and gas operations is possible. Local communities are more vocal about the impact of new development, affecting the timely construction of new infrastructure.

The report further explores new energy security elements which have joined traditional concerns on the agenda:

Interconnections of world economies – The interconnectedness of the energy infrastructure was highlighted by the disruptions caused by Hurricanes Katrina and Rita, which were felt throughout the world. Geopolitical alliances continue to shift along with supply sources and demand centres transforming traditional geopolitical dichotomies.

Climate change and technological innovation – Climate change concerns influence companies’ choices of new energy sources and emerging policies of governments on growth, environment, competition and new technologies. Many more fuel options – wind, photovoltaic, nuclear – exist today than in the 1970s, and diversified options such as hybrid vehicles and biofuels are increasingly available for transportation. Carbon capture and storage technology is being pursued as a potential avenue for keeping coal in the fuel mix for energy security without releasing greenhouse gas emissions.

Broader array of stakeholders and pressures – Although price signals may assist in achieving energy efficiency, successful efforts will be short-lived unless consumers either believe that higher price levels will be sustained or support conservation as a result of an improved market/policy matrix. Consumer and user organizations, for the first time in decades, will have the opportunity to negotiate alternative deals with a number of non-OPEC players, and to exploit upstream and downstream investment opportunities presented by non-OPEC producers.

The New Energy Security Paradigm is the first semi-annual Energy Vision Update for members of the World Economic Forum’s Energy Industry Partnership.

"Our revenues and earnings during the quarter increased primarily as a result of our current regulatory structure. We continued to improve the reliability of our generating stations, which also favourably impacted earnings. Despite lower Ontario electricity demand caused by a warmer than normal winter, electricity production was only marginally lower than in the first quarter of 2005," said President and CEO Jim Hankinson.

Earnings for the three months ended March 31, 2006 were favourably impacted by an increase in gross margin from electricity sales because of an increase in OPG's average sales price compared to the same period in 2005. OPG's average sales price increased as a result of the introduction of regulated prices and other related regulatory changes effective April 1, 2005. However, OPG continued to be a moderating influence on Ontario electricity prices, receiving an average sales price for the three months ended March 31, 2006 of 4.7 cents/kWh, which was lower than the weighted average hourly Ontario spot electricity market price in the first quarter of 2006 of 5.2 cents/kWh. OPG's average sales price in the first quarter of 2005 was 4.3 cents/kWh. The impact of the improved gross margin on earnings was partly offset by an increase in pension and other post employment benefit costs primarily caused by changes in economic assumptions.

OPG's earnings during the three months ended March 31, 2005, were unfavourably impacted by an impairment charge of $202 million related to its Lennox generating station. At the time, it was determined that due to its relatively high variable costs, the Lennox station would not be able to recover its carrying value from the wholesale electricity market in the future.

Electricity generated in the first quarter 2006 of 28.4 terawatt hours

(TWh) was slightly lower than first quarter 2005 generation of 28.8 TWh. Electricity generated from OPG's nuclear generating assets increased primarily as a result of the return to service of Unit 1 at the Pickering A generating station. Hydroelectric generation increased slightly due to higher water levels at stations in northern and eastern Ontario. Fossil generation declined as a result of lower Ontario electricity demand caused by a warmer than normal winter.

"Hydro One remains on track to achieve our 2006 financial targets. Strong and stable financial performance enables us to make the necessary investments to ensure the reliable supply of electricity to the people of Ontario," said Hydro One President and CEO Tom Parkinson. "Projects such as the $116 million investment we are making to reinforce the transmission system in the Niagara region are needed to provide access to new sources of generation in the public interest. The Niagara upgrades will increase our ability to import electricity by up to 800 megawatts and accommodate the expansion of the Sir Adam Beck facility in Niagara Falls."

During the quarter there were several industry developments and company initiatives, some of which are highlighted below:

Capital expenditures of $177 million for the first three months were higher than the comparative period by $21 million, or 13%. Expenditures made to expand the transmission system increased as a result of higher demand for customer connections and two critical investment programs: the Niagara Reinforcement Project and a project to construct an underground transmission line in downtown Toronto that will improve reliability. Asset replacement costs related to storm activity in north-central Ontario in early February 2006 also contributed to the increase.

Total revenues for the period were $34 million, or 3% lower than last year primarily due to the reduction in our transmission tariff revenues. Distribution revenues were marginally lower, reflecting lower purchased power costs, partially offset by improved tariff revenues attributable to a previously deferred rate increase effective April 1, 2005. Net cash from operations was $146 million for the first three months of 2006. During this period we paid $159 million in dividends to the Province of Ontario.

Glen Miller Hydro Facility Will Power 4,000 homes

TRENTON, ON - The Ontario government is delivering on its plan to ensure safe, clean, reliable, and affordable power for the future with the opening of the Glen Miller Hydro Electric Station near Trenton, Energy Minister Donna Cansfield announced April 26.

"This is another example of a clean power project that will help make renewable energy a key part of Ontario's future energy supply mix," Cansfield said. "All Ontarians will benefit as we increase our renewable generation supply."

The eight-megawatt, $21 million hydro project on the Trent River will generate enough electricity to power up to 4,000 homes. Glen Miller is the first new hydro power station and the fifth new renewable energy project to open in the last year as a result of the government's renewable energy RFP process.

"We're very pleased to be helping the province meet the energy needs of Ontarians," said project developer Michel Letellier, executive vice president, Innergex. "We support the Ontario Government's initiative to execute long-term contracts with independent power producers. It enables us to invest in sustainable development in the province."

"I want to congratulate the government for its continuing efforts to support the hydro power sector," said Paul Norris, President, Ontario Water Power Association. "Hydro power has been and continues to be a key component of Ontario's generation mix."

The Glen Miller Hydro Electric Station is one of the 19 new, renewable energy projects the province has contracted to date. Combined, these projects will help Ontario reach its goal of generating five per cent of its electricity capacity through renewable generation by 2007, and ten per cent by 2010.

"We are proud that since 2003 we have significantly increased the amount of renewable energy generation and brought an estimated $3 billion in new investment to Ontario," Cansfield said.
www.energy.gov.on.ca

Backgrounder

Glen Miller Hydro Electric Station

One of the oldest hydroelectric sites on the Trent-Severn waterway, Glen Miller Hydro Electric Station, has been revitalized. The 8-megawatt, $21 million project will generate enough electricity to power up to 4,000 homes.

Located in the community of Glen Miller on the Trent River north of Trenton, Glen Miller Hydro Electric Station was one of 10 winning proposals in the government's first renewable energy Request for Proposals (RFP) in 2004. The station developer, Innergex II Income Fund, is a private open-ended trust, that builds, own and operates hydroelectric power plants and wind farms in North America, especially in Canada. The Innergex Group contracted with Sonoco Canada, the owner of the site to revitalize the project.

Government of Ontario's Progress on Renewable Energy

The McGuinty government has set a target of generating five per cent of Ontario's total energy capacity from new renewable sources by 2007, and 10 per cent by 2010.

Through its renewable RFP process the government has contracted 19 projects for a total of 1,370 megawatts of clean renewable energy from wind, water, landfill gas and biogas projects.

Glen Miller Hydro Electric Station is the first new Ontario hydro station and the fifth renewable energy project to open as a result of the RFP process. Erie Shores Wind Project (99 megawatts) opened on April 13, 2006, Kingsbridge I Wind Project (40 megawatt) opened on April 6, 2006, Melancthon Grey Wind Project (67.5 megawatts) became commercially operational on March 4, 2006 and Eastview Land Fill Gas Project (2.5 megawatts) began operations on August 18, 2005.

Where:
RenewABILITY Energy Inc., 60 Baffin Place, Unit #2, Waterloo (see map below)

Directions:
RenewABILITY Energy Inc. is located 1 mile from the King Street Exit of the Conestoga Parkway/Provincial Route 85 North - Waterloo. Exit the Conestoga Parkway on King Street North (RR-15 North). After exiting Conestoga Parkway, proceed .4 miles on King Street making a right onto Northfield Drive East (RR-22). Travel .2 miles and turn left onto Davenport Road. Follow Davenport Road for .2 miles and turn left on to Baffin Place.

Who:
David Suzuki
Donna Cansfield, Ontario Minister of Energy
John Milloy, MPP (Kitchener Center)
Corey McBurney, Director of Operations, EnerQuality Corporation
Gerald Van Decker, RenewABILTY Energy Inc.
Hans Schreff of London Hydro

Reuters reports “the World Bank is urging its steering committee to approve a new breed of loans and grants that would go to developing countries to help them make power generation cleaner and more efficient. A report drafted for this weekend's meeting of the International Monetary Fund and World Bank at the request of Group of Eight leading nations already seems to have gained traction among some emerging countries.”

“The World Bank said developing nations need to invest some $300 billion each year for the next 25 years to meet their energy needs -- largely in electricity -- so the report focused on ways to make projects less environmentally taxing. ‘It's quite clear we have a number of technologies but the private sector has walked away,’ World Bank chief scientist Robert Watson said. ‘The problem is to induce investment.’ … ”

“One idea floated by the World Bank is the creation of a grant to help developing countries cut the cost of buying new high-efficiency energy technology and infrastructure. Another would see existing power plants upgraded, with the gains from more efficient production going to repay the loans that funded the original overhaul. The Bank also suggested establishing a venture capital fund to finance the development of promising new clean energy technologies as well as bringing them to market.”

Agence France Presse further reports that “British Chancellor of the Exchequer Gordon Brown said in March that at the meeting in Washington Sunday he would propose a World Bank fund under which $20 billion would be invested to develop alternative energy sources in poor countries. But Steen Jorgensen, the Bank's acting vice president for sustainable development, said that while Brown's idea had been welcomed it was not debated by the Development Committee on Sunday. ‘We think the needs will be much larger,’ he said of the 20-billion-dollar price tag on Brown's idea.”

Dow Jones add the World Bank study noted that “‘large developing countries must improve their regulation of energy markets to remove the biggest obstacle to investment in clean energy … Rapid policy and regulatory reforms could increase private-sector investment in the electricity sector in developing countries, as would better risk management tools, like political risk insurance, the World Bank said. Removal of broad energy subsidies would promote conservation. Public funding could concentrate on clean energy technologies that are not quite economically viable but which have potential for wider use to mitigate greenhouse gas emissions, the World Bank said. ‘There is a wide range of technologies,’ Robert Watson, chief scientist at the World Bank, said at a press conference. ‘The problem seems to be the private sector has walked away.’”

Further covering the World Bank and IMF Spring Meetings, The New York Times writes that “rich nations and Russia are responsible for at least 70 percent of greenhouse gases, and developing countries that are expanding energy production to feed economic growth and reduce poverty say it is unfair to expect them to bear the financial burden of producing clean power, said Robert Watson. ‘The developing countries say if you want us to be climate friendly, we have to be compensated for the additional costs,’ he said. The Bank estimates it will cost $10 billion to $200 billion per year to reduce greenhouse gas emissions, depending on the rate of the reductions. To help meet those costs, Bank officials authorized a proposal for accelerating investments in clean energy, to be drafted in the next five months.”

Agence France Presse finally reports that “the Bank plan has provoked criticism in some quarters. Some "find the (project) to be biased toward the development of alternative, renewable sources of energy not yet commercially viable while neglecting the bigger picture of aiming for cleaner, more efficient traditional energy sources."

The news agency further notes that “Dutch Development Minister Agnes van Ardenne noted that the project principally targets middle-income countries where there is a potential market for the development of clean energy. She said she would have preferred an "energy for all" initiative that would embrace the millions of people -- 500 million living in sub-Saharan Africa alone -- who have no access whatsoever to electricity. Her German colleague, Heidemarie Wieczorek-Zeul, meanwhile called for the creation of a fund at the African Development Bank to which oil producers would contribute for the promotion of renewable power sources in African countries.”

The Los Angeles Times and The Associated Press report that “finance ministers endorsed proposals Sunday intended to make it easier for international lending institutions to deal with soaring oil prices, trade gaps and other problems that threaten to derail growth. The policy-setting committee for the 184-nation International Monetary Fund and the World Bank told the agencies to attack corruption and, in the IMF's case, give tougher advice to member countries. Oil prices, now at a record $75-plus per barrel, were among the developments causing officials from Europe, the US and other countries at the institutions' weekend meetings to worry about the prospects for long-term growth.”

Agence France Presse reports that “World Bank policymakers for their part launched a new anti-corruption drive and gave final approval to the cancellation of $37 billion in debt owed the Bank by 17 poor countries, most of them in Africa. The World Bank in addition unveiled a two-year project aimed at promoting the use of clean energy in developing countries.”

Reuters meanwhile notes US Treasury Secretary John Snow said on Sunday that “as wealthy nations offer debt relief to the poorest, they must be sure not to trigger a new lend-and-forgive cycle that becomes endless. The US Treasury chief said global lenders must find ways to ‘unleash the power of the private sector’ to help the poor while also fighting corruption in countries where they lend and increasing access to financial services for their citizens.”

Agence France Presse also reports that “energy needs were … very much on the minds of the Group of Seven industrial powers, who on Friday declared that it was ‘crucial’ for oil producing countries to boost infrastructure investment in the face of soaring crude oil prices. While G7 finance leaders agreed that the global economic outlook remained favorable, they warned that oil prices were a menacing cloud on prospects. Stepped-up pressure for increased oil production prompted a blunt reminder from the Organization of Petroleum Exporting Countries

(OPEC) that oil consuming nations bore a responsibility to build more refineries in order to ease supply constraints.”

The Wall Street Journal Europe meanwhile reports that finance ministers on the IMF's policy-steering committee Saturday endorsed Managing Director Rodrigo Rato's proposal for formal ‘multilateral surveillance’ for countries whose policies have important spillover effects on others. The change seeks to address limitations the IMF has encountered in dealing with issues such as the US trade deficit or China's exchange-rate policy. At the same time, the steering committee endorsed Rato's proposal to give more votes at the fund to countries whose economies have grown rapidly. Ministers said they expected to consider proposals to accomplish this at the IMF annual meeting in Singapore in September.

The Guardian (UK) suggests that the new role for the IMF heralds a drop in status for the G7. The emergence of China and India in recent years has made the G7 unrepresentative of the new global economy and unable to offer solutions to global imbalances.

The Financial Times suggests that “the weekend agreement to establish ‘multilateral surveillance’ and ‘multilateral consultations’ to address global trade imbalances may not sound like a breakthrough. But even the most skeptical finance ministers and central bank governors viewed the IMF meeting as a great success. There was finally a shared understanding that huge trade gaps represent the biggest threat to the world economy, they said and a willingness to do something about them.”