Negative value-added from subsidising carbon capture and storage

Here is a precise of a piece of mine in today’s Australian

Angus Taylor is trying to bring an erosion of costs to combat alleged climate change through ‘masterful inactivity’ – letting the programs expire.  But it will take at least a decade to eliminate the current $5 billion a year impost paid by Australians in the subsidies and regulatory induced costs that are undermining low cost energy supply. Meanwhile, additional spending is being proposed – the latest being a subsidy for poles and wires to support the already subsidised rooftop solar panels.

New fads are constantly emerging, like extracting hydrogen from fossil fuels which, in a familiar refrain, will be a future bonanza if only governments come to the party with funding!

Rudd created six separate quangos to foster CSS with the Global Carbon Capture and Storage Institute (GCCSI) at the program’s heart. Being “member owned”, GCCSI doesn’t publish financial information to inform its Australian donors.

GCCSI shares its agenda with the CO2CRC, Chaired by Martin Ferguson, who as the former minister, in 2012 told us the government would be spending $2 billion and getting another $4 billion from industry and we’d have 2-4 carbon sequestration plants built by 2017.

At present, across the world, only two (heavily subsidised) CSS projects involve coal: SaskPower’s Boundary Dam and Petra Nova in Texas. Kemper’s CSS generator in Mississippi was abandoned 2 years ago – its original cost of $2.4 billion reached $7.5 billion.

CCS plant costs three times as much as conventional coal plants.  This was left unsaid in a recent article by David Byers, the head of CO2CRC, which puts the costs of a CCS coal plant at $150-250 per MWh, compared with its estimate of $65 per MWh for a conventional plant.

Buried carbon dioxide is unlikely to be permanently interred, even if CO2 were to have adverse human impacts.  After all, carbon for billions of years has been alternatively sequestered in the earth by plant photosynthesis and released by naturally induced surface fissures.

Meanwhile, Government funding of R&D and regulatory ‘nudging’ of energy developments diverts entrepreneurial activities away from better meeting new consumer-focused commercial needs.

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20 Responses to Negative value-added from subsidising carbon capture and storage

  1. Whatever the solution is, the problem is that our government is out of the citizens control.
    Once that control is re established, measures to halt the damage caused by lunatic government policies can be attempted.
    But until that happens, we are in the position of the man wrestling the proverbial 400 pound gorilla.

  2. stackja

    And if subsidies are removed?

  3. Karabar

    It is a mistake to continually harp on and on about the mythical “emissions”.
    Carbon Dioxide in the atmosphere is:
    a) Wholly disconnect to anything that humans can do
    b) Beneficial to humans and all living things in every respect
    c) Governed exclusively by Hook’s Law and the sea surface temperature.
    Continual focus on how many of these “emissions” are the fault of India or China, and continual banter about the myth of global warming is folly. The entire thing from go to whoa is superstitious nonsense.

  4. Shy Ted

    How good are Australian subsidies? Much better than other folk’ subsidies. And remember it’s Australian masterful inactivity at which we lead the world. If subsidies were removed Labour maaates would just be employed in some other scam.

  5. the myth of global warming is folly. The entire thing from go to whoa is superstitious nonsense.

    Second that!

    + ∞

  6. Tim Neilson

    Negative value-added from subsidising carbon capture and storage

    There ought to be a one key stroke shortcut for the bolded bit. It’s of universal application.

  7. mem

    the myth of global warming is folly. The entire thing from go to whoa is superstitious nonsense.

    +2
    And so is the proposition that you can measure (and average) the entire planet’s atmospheric temperature with any accuracy let alone to a fraction of a degree. It is meaningless number crunching only made possible by computer models.

  8. max

    Green Extinction Rebellion protester, Eric Serge Herbert 20, who caused chaos by gluing himself to a Brisbane street still lives with his parents in emission-spewing five-bedroom mansion with an infinity pool.

    https://wattsupwiththat.com/2019/07/21/green-protester-20-who-caused-chaos-by-gluing-himself-to-a-brisbane-street-still-lives-with-his-parents-in-emission-spewing-five-bedroom-mansion-with-an-infinity-pool/

  9. Note how both of those activists had to use plastic mats and a plastic reliant onsie (available thanks to oil) . These people simply cannot see the hypocrisy of their actions and beliefs.

  10. Bruce of Newcastle

    extracting hydrogen from fossil fuels

    Australia leaping into the 19th Century! We used to extract hydrogen from coal. That is what town gas was. A mix of H2 and CO from pyrolysing coal.

    Maybe if the Lock the Gate nutters would let us have some LNG and CSG we wouldn’t need to keep the lights on with reinvented town gas plants and ginormous gasometers.

  11. W Hogg

    CSS was money well spent by the swamp. Obviously tripling the net cost of power is designed to render Da Cole uncompetitive, just like every other policy of sabotage like RET and preferential feed-in for Unreliables. Once they slip a requirement for CSS into law, every power company will be screaming that Da Cole costs far more than solar etc. And it will be true, and economists will nod sagely and affirm the calcs that solar is the cheapest. It’s as if we mandated that ICE cars must be made by Rolls Royce. Instantly, 99.99% of cars will be Teslae.

    But you can only mandate that if there is actually a CSS demonstration plant working somewhere – otherwise it’s too transparent.

  12. gowest

    The govt does not want cheap power – cheap power means less taxes for them. Get over it.. Never going to happen without a revolution – you know a real one.
    Global warming is the universal excuse for doing something to tax the real economy and create jobs for govt influencers simple.
    Other peoples money has run our govt – whatcha going to do now? offer cheap loans, employ extra govt people to make things easier! – not working is it?
    Even greeny trad is going cap in hand to BEG (legislate) more taxes from coal mines to pay for her new qld public servants (activists more like) – she forgets these games have been played before and greedy poli’s go down.

  13. Mark M

    Next time someone tells you you need a carbon (sic) tax, they know they lie to you …

    UN CO2 hazchem sign UN2187

    non-flammable
    non-toxic gas

    https://nationalsafetysigns.com.au/safety-signs/carbon-dioxide-hazchem-un2187-sign-h1567/

    Merkel favors carbon (sic) pricing to meet environmental targets

    https://www.reuters.com/article/us-germany-merkel-environment/merkel-favors-carbon-pricing-to-meet-environmental-targets-idUSKCN1UE0YE

  14. Dr Fred Lenin

    The globalistas amuse me ,it is not possible for them to stop criminnal illegal entrannts tto white counntries ,they cant do it . However they CAN change the climate ! in spite of non white countries iincreasing coal power ,the sheer ignorant arrogance is breathtaking . At least religions invented a superior power (not coal fired) to do miracles ,all this mob need is an irrelevant tiny arts degree .Peak Wank is upon us.

  15. Sydney Boy

    “Global warming”? What are you talking about? Stop Adani protestors claim that a single coal mine 300km from the coast is going to destroy the GBR. So which is it? Global climate change or local climate change?

  16. Tel

    We used to extract hydrogen from coal. That is what town gas was. A mix of H2 and CO from pyrolysing coal.

    Lethal shit that was.

  17. Rayvic

    CCS is another sure way of wasting billions of dollars. It should not be allowed to grow.

  18. RobK

    Thanks for your efforts Alan. Keep up the good work.

  19. Nato

    Leave him alone. Angus has to prepare the lucrative consultancy projects for his life after Parliament, too.

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