Clean Energy Lobby Outspends Big Oil! September 8, 2010Posted by Jamie Friedland in Congress, Politics.
Tags: Big Oil, CCS, Clean Energy, Energy Subsidies, Exxon Mobil, FutureGen, Lobbyists, Oil Subsidies, Political Climate, Politics, RedState, Renewable Energy, ThePoliticalClimate
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No, that didn’t happen. The mere thought of it is preposterous. What actually happened is a recent report highlighted increased lobbying expenditures from renewable energy companies, and the conservative reaction has been predictably devoid of perspective. Pot? Kettle here. Let’s get you a mirror.
“By 2007, the alternative energy industry had begun to drastically increase its lobbying spending, almost doubling its expenditures from the previous year. In 2009, alternative energy organizations shelled out an unprecedented $30 million to protect and promote their interests on Capitol Hill, and this year, it’s on pace to equal that record output.
The alternative energy industry’s lobbying expenditures have grown to 12 times from its 1998 level. In comparison, oil and gas spending and mining spending have grown less than three times their 1998 amount, and electric utility spending has grown to just twice its 1998 amount.” (emphasis added by RedState)
That sounds like a lot of money, and it is. But of course the concept of context is lost upon RedState. Let’s try adding some.
Renewable energy companies spent $30 million on lobbying in 2009. Compare that to 2009 lobbying expenditures for:
- Oil & Gas: $175,079,824
- Electric Utilities: $145,691,753
- Mining: $26,538,874
- Misc. Energy: $56,013,293 – $30 million in renewables = ~$26 million*
Total: more than $373 million in 2009 lobbying.
*The “Misc. Energy” category contains dozens of companies, some from the renewable energy sector but others such as the FutureGen Industrial Alliance, which lobbies for “clean” coal. OpenSecrets cited $30 million for renewables, so I used that number here.
In 2009 alone, dirty fuel interests outspent clean energy by a factor of 12.4. The oil and gas industry outspent renewables by a factor of nearly 6. And Exxon Mobil – alone – spent 90% as much on lobbying as the entire clean energy sector.
Since 1999, oil and gas companies along with electric utilities have spent over $2 billion. In that period, the renewable energy sector spent $105 million. So tell me again why we’re whining about the big bad clean energy lobby?
The author of this RedState blog post, writing under the pseudonym Vladimir, identifies himself only as “Operations Manager for a small Gulf of Mexico oil & gas explorer & producer.” Vlad further explains the crippling burden imposed by tyrannical American energy subsidies upon the tiny, innocent oil industry:
“The wind industry is pocketing subsidies that dwarf those garnered by the oil and gas sector. …Wind subsidies are more than 200 times as great as those given to oil and gas on the basis of per-unit-of-energy produced.”
First of all, The per-unit cost difference is easily explained: oil industry is fully mature whereas renewables are still very much developing. New industries, especially those with positive instead of negative social benefits, receive subsidies so that they can develop more quickly and their costs can come down. These fuels are our future, and we’d like to get there as soon as possible.
Side note: That future isn’t just clean and renewable, it’s really cool: check out these self-healing solar cells.
But more importantly, NO wind subsidies absolutely do NOT “dwarf” oil subsidies. That is patently false. When one compares size, one generally compares…size. A > B. Not A/X > B/Y.
Below is a wonderful graphic produced by the nonpartisan Environmental Law Institute (where, in the interest of full disclosure, I currently work – this was compiled long before my recent arrival).
This chart is slightly dated. For example, just this Tuesday, the Department of Energy pledged more than $575 million in stimulus funding for 22 different projects related to Carbon Capture and Storage (E&E News, subscription required). But you get the idea.
You cannot make the serious claim that renewables get unduly preferential government treatment on account of their lobbying. One look at the benefits these lobbying efforts reap dispels that notion.
The conservative self-delusion is irreconcilably hypocritical when subjected to the facts of real life. That is why the two worldviews currently exist without much overlap.
Hat tip to Kevin Grandia at DeSmogBlog for his post on this.
Back to the FutureGen: Obama Revives Coal Plant August 16, 2010Posted by Jamie Friedland in Climate Change, Coal, Politics.
Tags: Advanced Coal, CCS, Clean Coal, Coal, Earthquakes, FutureGen, IGCC, Illinois, Mattoon, Obama, President Bush, USGS
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Earlier this month, the Obama administration awarded $1 billion to revive FutureGen, a commercial-scale advanced coal power demonstration plant that was both proposed and killed during the Bush administration. As a coal-state senator, Obama has long supported projects such as this, and this funding is consistent with promises made on the campaign trail. The resurrected project has been dubbed FutureGen 2.0.
Originally announced in 2003, FutureGen was intended to combine and test a number of different advanced coal technologies* (explained at the bottom of this post for those who are interested).
The most anticipated technology to be tested at this plant was the underground storage of carbon dioxide emissions, known as Carbon Capture and Sequestration (CCS), the subject of an entire previous post. This technology could theoretically allow us to burn coal without releasing greenhouse gases.
If coal is to have any real future, it will be completely reliant upon some form of CCS technology; without it, “clean coal” does not exist and coal will not be able to compete with other energy sources if/when any kind of price or limit is established on carbon pollution*. So coal companies have a prominent stake in this project.
It makes sense, then, that this project was a joint venture between the federal government and a corporate consortium called the FutureGen Industrial Alliance Inc. Alliance members include major coal companies from both the United States and around the world; as I said, the future of coal power depends upon the development of CCS technology**.
The project was originally planned to cost $950 million, but expected costs continually rose. After five years, in January 2008, the Bush administration cancelled funding for FutureGen largely because the expected cost had ballooned to $1.8 billion (with the government on the hook for a much larger share than the private sector**).
Interestingly, it was reported in 2009 that the Energy Department had made a $500 million accounting error in projecting those increased costs; the price tag had indeed gone up, but it had not actually doubled. This adds another layer of intrigue to the already curious circumstances of the project’s first death.
Cost was the stated reason for cancelling FutureGen, but there were other plausible motives. A number of states actively pursued the investment and jobs that FutureGen would create. The final four potential sites were split evenly between Illinois and Texas. Just three weeks before our nation’s most prominent Texan killed FutureGen, Mattoon, Illinois was selected as the future home of FutureGen.
So when the funding disappeared, the Illinois delegation immediately accused Bush and his Secretary of Energy of having ulterior motives. And the accusations weren’t beyond belief, especially given the deceitful manner in which the funding was withdrawn: the administration announced its intention to pull the plug literally the day after President Bush highlighted federal investment in advanced coal technology during his State of the Union address. Political promises are often broken, but not often within the first 24 hours.
Yet after all that effort to bring FutureGen to Mattoon, the Illinois town pulled out of the project last week. Their decision makes some sense.
FutureGen 2.0 is notably different from its predecessor; instead of building a completely new plant, the new plan is to retrofit a currently mothballed coal plant 150 miles away in Meredosia, Illinois. Mattoon was still a key player in the new plan, however: the town boasts one of the country’s most ideal geological formations to store carbon dioxide underground. FutureGen 2.0 planned to store carbon dioxide beneath Mattoon via a pipeline from Meredosia.
As I have previously described, if CO2 were to leak out from an underground reservoir, the denser CO2 can displace all the oxygen near the ground and smother any living thing above. It has happened before. A particular geological formation might be structurally sound and contain CO2 for now, but we are not talking about short-term storage, and geology is not permanent. Mattoon residents were reminded of this just 6 months ago.
The Midwest is not commonly known for its earthquake activity, but Mattoon is just 100 miles from the Wabash Valley Seismic Zone. On February 11 of this year, a 3.8-magnitude earthquake shook southern Illinois. And in 2008, a 5.2-magnitude quake was centered 200 miles from Mattoon.
To make matters worse, according to the U.S. Geological Survey, the nearby New Madrid Seismic Zone has a 90% chance of a magnitude 6 or 7 quake in the next 50 years.
I’m not a geologist, but that worries me a little. If I lived in Mattoon, I wouldn’t find the prospect of carbon storage in my back yard very attractive without $1 billion in investments either.
But other towns are already lining up to take Mattoon’s spot, and lawmakers from my native Illinois are doing everything they can to keep this project close to home. FutureGen 2.0 is very much alive.
* FutureGen Technologies:
FutureGen is planned to be an “Integrated Gasification Combined Cycle” plant (aka IGCC). Coal gasification is a process that breaks down coal into its chemical components and produces, among other things, a cleaner-burning gas that no longer contains many of the pollutants in coal. Another product is hydrogen, and this plant is supposed to test the commercial viability of creating fuel hydrogen from coal.
The “Combined Cycle” refers to a more efficient design that uses two turbines to generate power instead of just one: the primary turbine is powered by that gasified coal, but a secondary steam turbine generates extra electricity from all the heat generated by the gasification process and primary generation.
In a traditional power plant (and the vast majority of industrial facilities around the world), vast quantities of heat are produced and wasted. That heat could be used to generate electricity or heat facilities or water. Anyone interested in more on this should look up “Combined Heat and Power” aka “Cogeneration.”
Additionally, FutureGen is designed to demonstrate oxy-combustion technology that produces a more manageable stream of carbon dioxide that is better suited for storage.
** Funding FutureGen:
America today is undeniably dependent upon coal power. Carbon-free coal would certainly be in our national interest. It would be a boon. However, the coal industry, for obvious reasons, is entirely dependent upon coal power for its survival. America can survive without coal; the coal industry cannot. For that reason, it has always rubbed me the wrong way that the Department of Energy agreed to provide nearly three quarters of the funding for FutureGen, with industry exposure limited to just $400 million – to fund their own survival. Why taxpayers should pay so that a polluting industry can have a future is beyond me.
It is also worth noting that according to a report released late last week by a CCS Task Force established by President Obama, the key barrier to CCS deployment is the lack of comprehensive climate change legislation. So coal companies are both taking taxpayer money to fund their only chance for a future and spending their own money to fight against that very same future.