Director of the CoalSwarm Project Ted Nace has said that Jamaica will be unable to meet its target, of 7.8 per cent reduction in carbon emissions by 2030, should it go ahead with the commissioning of the proposed 1,000-megawatt (MW) coal-fired plant at the Alpart alumina plant which has recently been acquired by Chinese firm Jiuquan Iron and Steel Company Ltd. (JISCO).

Using the CoalSwarm Global Coal Plant Tracker, Nace shared calculations with The Gleaner, which show that a 1,000 coal plant would produce 5.6-5.8 million tonnes of CO2 annually.

Jamaica produced 7.1 million tonnes of CO2 in 2012.

“A coal plant would increase Jamaica’s emissions of CO2 by 79 per cent (for a “subcritical” plant) – 82 per cent (for a “supercritical” plant), assuming it were run at an 80 per cent capacity factor,” the coal expert said.

Pointing to the Paris country brief for Jamaica, which outlines Jamaica’s commitment under the United Nations Framework Convention on Climate Change (UNFCCC) Paris Agreement, Nace said, “such an increase would destroy any chance of meeting Jamaica’s commitment”.

VIOLATION OF AGREEMENT

Greenpeace campaigner Lauri Myllyvirta has argued that constructing the plant would violate the Paris Agreement.

“All signatories to the Paris agreement have accepted the goal of limiting global warming to 1.5-.2.0 degrees celsius. There is no more space for any new coal-fired power plants to be built under this goal, so in that sense the project does violate the basic aim of the agreement,” he said in an email response to The Gleaner.

According to the climate action plan, submitted to the UNFCCC by the Jamaican authorities, Jamaica has committed to a 7.8 per cent reduction in emissions by 2030 under its Intended Nationally Determined Contribution (INDC).

POSSIBILITY OF COAL SPILL

Jamaica signed the Paris Accords in April of this year but is yet to ratify the agreement.

“While the construction of a coal plant can produce a number of construction jobs in the short term, the number of long-term jobs is much lower, certain far lower than the number of jobs in the tourism sector,” Nace told The Gleaner.

According to the Nace, Jamaica could face the possibility of a coal spill given that coal terminals will have to be built to facilitate the importation of coal.

“Jamaica is not a major coal producer and as such coal would have to imported from a neighboring producer such as Colombia or the United States. This would mean construction of a coal terminal and the possibility of a coal spill,” he explained.

Gleaner

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Malvern, St Elizabeth — Eighteen months after ground was broken, the 36.3-megawatt wind farm run by BMR Jamaica Wind at Potsdam, Malvern, high in the Santa Cruz Mountains, was formally commissioned in mid-August.

Priced at US$89.9 million, the wind project, located across the road from another wind farm run by light and power company Jamaica Public Service Company (JPS), is being described as the single largest investment in St Elizabeth since construction of the Alpart alumina plant at Nain in the late 1960s.

The BMR project includes eleven wind turbines, which will provide energy to JPS’s national grid at US12.9 cents per kilowatt-hour.

BMR Jamaica Wind is a subsidiary of US-based BMR Energy. Guests at the recent formal commissioning were told that billionaire British investor, Sir Richard Branson — who turned up for the commissioning — was in the process of acquiring BMR through his wide- ranging and far-flung Virgin Group.

Branson, who triggered laughter by ripping up and throwing away what he said were his speaking notes, told his audience that his motive for the acquisition was to promote a clean energy revolution.

“I decided recently that we needed to get one or two core (clean energy) companies under our belt so that we can actually get out there and speed up this revolution …” he said.

“ We were delighted to acquire BMR and we will be out there trying to hustle and bustle governments all over the Caribbean and other countries to hurry up towards carbon neutrality by 2050. Personally, I don’t need to make money out of it, if it makes a bit of money, fine; if it doesn’t, fine. I just want to get the wind out there get the solar out there, … be powered by sun, wind, sea… a green energy revolution and bring the cost of energy down for everybody; get rid of the dangers of coal and oil and the dirty energies that we are using today… ” said Branson, founder of the Virgin Group.

Funding for the BMR project in Malvern was sourced through a package including a US$42-million loan from the US quasi-government investment agency Overseas Private Investment Corporation (OPIC), which pushes US overseas investment globally; US$10 million from the International Finance Corporation (IFC), which promotes private sector development; US$10 million from the IFC-Canada Climate Change Programme and equity investment of US$26.9 million from BMR Energy.

Jamaica’s energy minister Andrew Wheatley said the BMR wind farm formed part of the government’s drive to significantly reduce reliance on fossil fuels and reduce the current annual oil bill of about US$2 billion. Ninety-two per cent of Jamaica’s energy needs are currently met by oil imports, he said.

The project was in line with the target of 30 per cent renewables in the national energy mix by 2030, as stated in the National Energy Policy, and in keeping with Vision 2030 Jamaica, the minister said.

“Projects like BMR continue to establish Jamaica as a clear renewables market leader within the Caribbean. By the end of this year, we would have added 80 MW of renewable energy to the national grid, through Wigton III (a wind farm at Rose Hill in southern Manchester), Content Solar (solar plant in Clarendon), and this facility,” Wheatley said.

Bruce Levy, president of BMR Energy, said the company had plans to expand the wind farm at Malvern by an additional three wind turbines. Small farmers would co-exist with the energy-generating operations, he said.

Jamaica Observer 

BY KIMONE THOMPSON Associate editor – features thompsonk@jamaicaobserver.com

DISCOVERY BAY, St Ann — For the past two-and-a-half years, the Inter-American Development Bank (IDB) has spent upwards of US$660,000 growing coral in two locations in Jamaica and one site in Belize.

If you’re like most people, you’re wondering why a development bank, with the broad objectives of helping its members reduce poverty and grow their economies, is concerned with coral.

“I don’t think it odd at all that the bank is doing this. I think the bank should be doing more things like this. In fact, if you look at the direction in which the bank is going now, you’ll see that the bank will be doing more and more things like this,” says IDB Environmental Principal Specialist, Climate Change and Sustainability Development Sector Graham Watkins.

‘This’ is in reference to the Coral Reef Restoration Program, in which scientists from the The University of the West Indies’ Centre for Marine Sciences and its Discovery Bay Marine Lab have been studying various coral species to determine their resilience to climatic variation and change, including sea level rise and increased ocean/sea temperatures. They propagate the corals in nurseries and will transplant them once they are big enough in hopes of replenishing the island’s declining coral stock over time. Work under the programme started in June 2014 and will end in November. Similar work was carried out in Placencia, Belize, through collaboration with Fragments of Hope.

Speaking yesterday at a workshop to discuss the results and outcomes of the programme at the Discovery Bay Marine Lab, Watkins explained that the programme was a natural fit for the IDB as it reflects a shift in the organisation’s policy.

“The bank recently updated its 2010-2020 strategy. It updated it mid-term, which is interesting because one of the major changes that they’ve made…they didn’t change the objectives – poverty reduction and economic growth still sit as the main objectives of the bank – but what they’ve done is they’ve made climate change and environmental sustainability institutions as completely cross-cutting. They made a clear statement that the IDB, yes, will chase those original historical goals, but it will incorporate those (climate change and environment) across the bank,” the environment specialist said.

“It is quite a fundamental change in the direction of bank,” he added.

Watkins explained that in his six years at the IDB, he has seen climate change grow from an initiative, which he defined as little more than a one-off project to throw money at, to a division, and as of this year, a full-fledged department.

Previous to that development, he said, the bank had drafted a biodiversity plan because it believes that its core objectives cannot be divorced from sustainable use of natural resources.

“If you look at biodiversity in Latin America and the Caribbean, you’ll see that [it’s] one of the major sources of dependence for very poor people, whether you’re talking about coral reefs or whether you’re talking about rainforests. So, if you really want to meet those goals of poverty reduction, you’re going to have to deal with those issues.

“If you look at the Caribbean and you’re going to talk about economic growth, you’re going to have to look at tourism and tourism depends on those resources, so the links are quite obvious when you think about it,” the IDB representative continued.

The directional shift towards environmental concerns, he said, had much to do with the Paris Agreement signed last December, and the Sustainable Development Goals to which UN member countries agreed upon earlier in 2015.

Watkins argued that while it may be “easier said than done” convincing politicians and other decision makers to drive the change, it is the way of the future. Strengthening the point, he pointed to an op-ed in the Guardian, written by IDB President Luis Alberto Moreno and professor of economics and government at the London School of Economics Nicolas Stern, which, in a nod to the emerging green infrastructure movement, advocated for a merger of the climate change and infrastructure development agendas.

“The idea is to bring those two things together because they are critical for economic growth and poverty reduction,” said Watkins.

The two-day workshop is called ‘Coral Lifeline’ and will include site visits to the underwater coral nurseries today

Observer

Screen Shot 2016-08-19 at 12.16.19

As LNG partner New Fortress Energy begins shipment of liquefied natural gas to the island, power distributor Jamaica Public Service Company (JPSCo) is indicating that savings will depend on pricing, which varies from month to month.

Chief Financial Officer of the Jamaica Public Service Company (JPSCo) Dan Theoc told the Jamaica Observer: “The cost of LNG at Bogue is likely to be cheaper than the cost of oil next month (September) when Bogue is expected to come on line.”

But, based on current price differentials and the fact that Bogue will only represent approximately 12 to 15 per cent of the generation mix, it is expected that total savings — based on this price differential – will be marginal (less than five per cent), all other things remaining equal, Theoc told the Business Observer.

Spot prices for LNG on the Henry Hub (HH) index registered US$2.82 per million Btu in July after starting the year at US$2.28 in January and falling to US$1.73 in March.

Crude, on the West Texas Intermediate index, started the year at US$30.32 per barrel and crested at US$44.65 in July.

“Unfortunately, we cannot say definitively what the impact of natural gas will be in the future because of the volatility in oil prices relative to natural gas prices,” Theoc said.

JPS will be buying natural gas from Fortress under a 20-year exclusive gas supply agreement and they will be responsible for all of the supply chain logistics and infrastructure costs.

That includes the mode of delivery to the island, the frequency of delivery, the storage of the LNG, the regasification and the distribution by pipeline to the property.

Theoc noted, “We will pay for gas based on the Henry Hub Index plus an agreed margin (which we cannot disclose), similar to how we buy fuel today from Petrojam based on the US Gulf Average Mean Index plus an agreed margin.”

In general, he added, “It is worth noting that the HH index in the past five years has been far less volatile compared to Oil-based Indices (like US Gulf, WTI and Brent Crude), so we view the move to HH as being a plus for price stability.”

It is expected that Bogue will actually make up 12 to 15 per cent of the generation mix on natural gas and that when the 190MW plant in Old Harbour comes on line in 2018, approximately 40 per cent of our generation mix will be based on gas-fired power plants.

In general, it is expected that renewables penetration will increase from five per cent in 2015 to 12 per cent by 2018.

The consequence, Theoc said, will be an improvement in fuel diversity from a situation where 95 per cent of production was oil-fired last year to a situation where less than 50 per cent is fired by oil.

The CFO said the pending award of a gas project to Jamalco will also potentially increase the percentage of generation units which are fired by natural gas by about ten per cent to further replace oil-fired units by 2019.

Jamaica Observer 

An explosion that killed at least 21 people and injured five others last Thursday at a coal-fired plant in central China has not gone unnoticed by consulting mechanical engineer Howard Chin.

He has argued that the incident should give the Jamaican authorities cause for pause with regard to a proposal from the Chinese to build a 1,000-megawatt coal-fired plant at the Alpart alumina refinery which has been acquired by Chinese firm Jindal Iron and Steel Company Ltd (JISCO).

“China has a reputation for explosions at its coal-fired plants because the safety standards are not very well regulated, so Jamaica could face that risk … . If you look at the North-South Highway, the Chinese did a quick slab job on that one. They didn’t do proper studies for that project, if you ask me. So I think these coal plant explosions in China should be instructive for Jamaica,” he said in an interview with The Gleaner.

Chin, who is a former president of the Jamaica Institution of Engineers (JIE), explained that explosions in coal-fired plants are generally caused by improper welding.

According to Chin, the fact that the Chinese do not adhere to international welding standards, for the boiler and pressure vessels that would be used in the coal-fired plant, established by the American Society of Mechanical Engineers (ASME) that could result in improper welding. And improper welding could lead to deadly explosions, similar to those that occur in China. A lack of sufficient ASME certified welders in Jamaica is also seen as problematic.

 

CAUSE OF THE FIRE

 

Last Thursday’s explosion at the coal-fired plant in the Hubei Province of China was caused by a faulty high-pressure steam pipe which went bust. The Dangyang-based plant was still under construction when the explosion occurred.

The former JIE president raised further questions about what he described as a number of defects that would be associated with the proposed coal-fired plant.

“There is the matter of the ash. Where are you going to put all the ash? It’s possible you can put it all in cement, but that would require a cement plant to be built to take all that ash, because of lot of ash will be generated. There is also cooling water that will be needed, and the only water source that is near there is the Black River and if you cool the plant using the Black River, you are going to kill the fish in that river with all the heat, so I don’t think that is a good idea,” he said.

andre.poyser@gleanerjm.com

 

The Gleaner

Diana McCaulay

Jamaica will pay dearly in terms of the health of its people and the environment if the new owners of the Alpart bauxite facility in Nain, St Elizabeth, are allowed to build a proposed 1,000 megawatt coal-fired power plant, according to the Jamaica Environmental Trust (JET).

The organisation yesterday registered its strong opposition to the proposed energy source “due to the harm to human health and climate posed by coal-fired power plants”.

“Rethink this harmful project,” Diana McCaulay, JET’s chief executive officer, appealed to Prime Minister Andrew Holness, the portfolio minister for environmental issues.

She went on to argue some of the potential negative impacts of the various greenhouse gases discharged into the atmosphere by coal-fired plants, which are being phased out in developed countries.

“The pollutants from coal-fired plants that pose significant risks to human health are sulphur dioxide, nitrogen oxides, mercury, and particulate matter. Sulphur dioxide is a trigger for asthma attacks and combines with water vapour to form acid rain, which will also affect crops and soil health in the farming parish of St Elizabeth and beyond,” JET said in a release.

“Nitrogen oxides are a precursor to smog and increase the likelihood of respiratory ailments such as wheezing, coughing, colds, flu, and bronchitis.”

JET continued: “Mercury is a neurotoxin associated with irreversible IQ deficits and neurobehavioral pathologies. Particulate matter, also called PM or soot, consists of microscopically small, solid particles or liquid droplets suspended in the air. The smaller the particles, the deeper they can penetrate into the respiratory system and the more hazardous they are. There is a robust association between daily rates of human mortality and levels of particulate matter even when levels are below air-quality guidelines. Emissions of these pollutants can be reduced with modern equipment, but this type of coal plant is not cheap to build and does not produce cheap electricity.”

Mining Minister Mike Henry recently announced the sale of the old Alpart plant to the China-based Jiuquan Iron & Steel (Group) Company Limited (JISCO).

He said JISCO would be investing US$2 billion to establish an industrial zone at Nain, employing more than 3,000 people.

It was announced that the industrial zone would comprise bauxite mines, an alumina refinery, a coal-fired power plant, a local electricity network, rolling wire mills, and a range of aluminium products, among other enterprises.

The Government’s consideration of coal-fired power generation is also a matter of concern for Clifford Mahlung, project administrator at the Climate Change Division in the Ministry of Economic Growth and Job Creation.

“There are other options out there I would have preferred, but they come at a cost,” he told The Gleaner yesterday.

“I’m figuring that is probably the most cost-effective way of achieving what they want from the plant. But, yes, the emissions are of concern, and so we hope that the impact will be minimised as much as possible so that we can be proud of that plant.”

However, yesterday, Energy Minister Dr Andrew Wheatley said no application had been made for construction of a coal-fired plant in St Elizabeth.

“There was no approval or anything like that done. They need to get their facts straight before they comment,” Wheatley told The Gleaner/Power 106 News Centre.

Mahlung explained that while construction and operation of a coal plant would not be a breach of climate-change conventions, it could fly in the face of Jamaica’s commitment to reduce greenhouse gas emissions by the equivalent of 1.1 million metric tons of carbon dioxide per year by 2030.

While carbon capture and underground storage of the pollutants is an option, Jamaica does not have the technology, which would involve the use of large underground caves consistent with the size of the Green Grotto Caves in Discovery Bay, St Ann.

However, that does not seem a practical option in light of the country’s geological formation, which is mainly limestone, which is very porous.

“So it can’t keep the CO2 (carbon dioxide) underground … . Maybe they can find a way to capture that CO2 and transport it to somewhere else in the island. But all of this is at a cost to store it if that technology becomes possible, but these would add to the cost.”

christopher.serju@gleanerjm.com

The Gleaner

Steadman Fuller, custos of Kingston has described climate change as the single greatest threat to local agriculture and, by extension, the Jamaican economy.

“Sadly, ladies and gentlemen, the food security to which we are traditionally accustomed is under serious threat. Only this time, it is under threat not directly from crop diseases and pests or praedial larceny, but from a more severe, potentially devastating and costly phenomenon called climate change,” Fuller told patrons on Sunday while delivering the keynote address on day two of the annual Denbigh Agricultural, Industrial and Food Show.

Explaining climate change as a “noticeable and sustained variation in weather conditions”, the custos sought to drive home to his audience the impact of climate change.

“The excessive heat that we have experienced; the long, dry season and the disappearance of some of some of our beaches, such as what is taking place at Hellshire in Portmore, are the direct result of climate change. You may even want to account that the heat that you have been feeling today is part of that phenomenon. In relation to agriculture specifically, climate change is a ticking time bomb,” Fuller declared.

VULNERABLE

“Just to give you an example, the destructive forces of flood and bush fires which destroy hundreds of acres of crops and farmland across Jamaica in the process, are reminders of our vulnerability to the intensity of natural disasters due to climate change. If left unchecked, climate change could reduce crop yields and the overall contribution of agriculture to national development. The farming sector could be wiped out if measures to safeguard the industry are not swiftly implemented and vigorously pursued.”

Fuller said that the theme of this year’s show ‘Grow What We Eat … Eat What We Grow Through Climate-smart Agriculture’ is evidence that the Jamaica Agriculture Society is well aware of the imminent danger and is ready to have that important conversation with farmers and other stakeholders in order to avert the potential danger.

He also had a message for policymakers.

“While there is no simple solution to the threat and consequences of climate change, it is a reality that measures and strategies must be implemented to ensure that our farmers can continue to do what they have done for centuries, and that is feed our nation.

“As a nation, we have to introduce measures to embrace climate-smart agricultural practices, so that rural communities can remain economically viable; our tourism and hospitality sector can have a sustained supply of fruits and vegetables and high-quality products; (and) our agro-processing sector can achieve its growth potential.”

Gleaner

JMMB Group Limited will spend US$420,000 ($53 million) on a solar energy system to power various offices across Jamaica this year.

The project forms part of a wider move by JMMB to reduce its carbon footprint.

“We plan to implement this on a location-by-location basis, with the first implementation taking place at one of our locations in Kingston, in the coming months. The cost is as stated, US$420,000,” the financial conglomerate told the Financial Gleaner.

JMMB estimates the project payback period will span just about five years based on expected energy savings.

The solar plant will generate up to 293,935 kilowatts, hours of electricity per year with the use of clean renewable energy.

“The system is expected to save the company US$90,000 annually, and reduce oil energy dependency by 34 per cent,” JMMB said in its newly released annual report for year ending March 2016.

Roughly three years ago, JMMB embarked on a company-wide initiative coined ‘Go Green’, with one of the primary objectives to change the group’s energy practices in a way that was more environmentally friendly and cost-efficient.

“This investment in a grid-tied solar system is just another step in the direction of making us even more efficient at how we use energy,” the company said via email.

A grid-tied solar system is one where the system itself is tied to the external electricity grid, as opposed to batteries.

“In other words, the system uses the sun to generate our electricity needs, with any unused electricity going back to the external grid, as opposed to being stored in batteries,” said JMMB.

JMMB expects the project to expand over time through exploration of other renewable resources to all JMMB Group locations, where possible.

JMMB Group made $2.3 billion profit off $10.42 billion of net revenue in FY2016.

Gleaner

MAHLUNG… emissions from the transport sector have increased significantly

JAMAICA SAW a reduction in its greenhouse gas (GHG) emissions between 2008 and 2012, signalling a step in the right direction for the island’s efforts to stave off negative climate change impacts.

“We have seen a reduction from about 27,000 gigagrams (CO2 equivalent) in 2008 to just about 20,000 in 2012,” revealed Clifford Mahlung, project administrator for the Third National Communication and Biennial Update Report to the United Nations Framework Convention on Climate Change (UNFCCC).

Mahlung was referencing findings from the Biennial Update Report that is to be submitted to Cabinet in another two or so weeks for their approval before submission to the UNFCCC.

“The main reason for this is the reduction in fuel consumption in the mining/bauxite sector. It was in 2008 that we had a downturn in the demand for bauxite,” he noted.

However, a former seasoned climate change negotiator for Jamaica, Mahlung cautioned that the island would need to continue its efforts to reduce emissions – and for a variety of reasons.

“With the upturn in bauxite since 2012, you could see the levels going up,” he noted.

And even with the move towards renewables ‘that are now somewhere about 20 per cent of the energy mix’, Mahlung said, emissions from the transport sector was trending up.

“What we have found is that emissions from the transport sector have increased significantly. It is now about 28 per cent of the total emissions and second only to the energy sector, which is 31 per cent,” he noted.

“It means that there should see some focus on how we can reduce the emissions coming out of the transport sector,” he added.

For this, Mahlung has lauded the efforts of actors such as the JPS.

“We support the report that we have heard from the JPS, for example, about the introduction of electric cars. And definitely we should also still be actively pursuing an improved mass transit system, such as rail,? he added.

JPS announced earlier this month that it was seeking a deal with American electric car maker Tesla – to fuel the appetite for electric cars, which are seen as one answer to current high levels of petrol consumption.

Global climate change is fuelled by emissions of GHGs, including carbon dioxide and methane, with significant negative implications for, in particular, small-island developing states, including Jamaica.

Among the negative impacts of the changing climate is increased global temperatures and extreme weather events, such as droughts, the burden of which Jamaicans have had to bear in recent times.

pwr.gleaner@gmail.com

 

The Gleaner

Winsome Callum: Company officials had only “just” received the determination notice and were going through it.

Jamaica Public Service Company (JPS) customers will see an increase in their August electricity bills as a result of the average 2.6 per cent rate increase the Office of Utilities Regulation yesterday (OUR) announced it had granted the energy company.

Rate-10 customers (small residential) will see on average a 2.4-per-cent increase, the same as Rate-20 (small commercial) customers.

For Rate-40 customers (medium commercial/industrial), the increase is 2.9 per cent, and 3.2 per cent for Rate 50 (large commercial/industrial) customers.

This means that a Rate-10 customer using 349 kilowatt-hours of electricity per month for which he or she paid $9,583.48 before April, is likely to see that bill going up by about $231.90 to $9,815.38, reflecting a 2.42 per cent increase.

Contacted for comment, Winsome Callum, director of corporate communications at the JPS, advised that company officials had only “just” received the determination notice and were going through it and so could not comment in detail on the matter.

This first rate increase granted by the OUR in more than three years comes on the heels of a 12.8 per cent increase in electricity charges announced by the JPS less than a month ago, on June 13, and which it linked to the tax package announced by Finance Minister Audley Shaw in his Budget presentation on May 12.

The JPS justified the rate hike at the time to the following combination of factors:

• An increase in the cost of the fuel used for electricity generation because of rising oil prices on the international market;

• The impact of the recent increase in the special consumption tax charged on heavy fuel oil;

•  Continued devaluation of the Jamaican dollar.

In its release, the OUR explained that in arriving at its decision, it had taken the following factors into consideration:

a) A 9.53 per cent increase in the non-fuel revenue cap over the starting cap of 2014;

b) The full pass-through of system losses in the fuel rate as is now required by the new electricity licence;

c) The introduction of a revised incentive scheme for system-loss reduction, and based upon non-fuel revenues rather than fuel revenues, in keeping with the terms of the new licence;

d) A 50 per cent reduction in the Electricity Efficiency Improvement Fund (EEIF) tariff contribution;

e) The adjustment of rates to be charged for prepaid residential customers; and,

f) The adjustment of rates to be charged to some customers who will benefit under the Community Renewal Programme.

christopher.serju@gleanerjm.com

The Gleaner