TXU faces a Texas coal rush

Interesting article from Fortune Magazine bellow. Other articles about TXU can be found (baptists) here, (environmental groups) here, (TU Scientists) here and for another one of my posts with a video of activists on the streets check this out.

[UPDATE] Sheryl Crow and Laurie David are now planning to tour texas to help build opposition.
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For whatever reason - the wreckage of Hurricane Katrina, Al Gore's "An Inconvenient Truth," the plight of polar bears in the Arctic, the Democratic takeover of Congress - this is the moment when corporate America has at long last decided to get serious about global warming.

Joining hands with environmentalists, the CEOs of ten Fortune 500 companies, among them GE (Charts), Alcoa (Charts), DuPont, and utilities Duke Energy and PG&E (Charts), last month called on the government to regulate the greenhouse gases caused by burning fossil fuels. Dozens of big companies, including Wal-Mart (Charts), have pledged to reduce their own emissions of carbon dioxide. In a twist on the theme, Dell (Charts) will arrange to have trees planted for customers who pay $2 to offset the CO2 generated when a computer is plugged into the power grid.

And then there is TXU (Charts).

A $10.4-billion-a-year energy company based in Dallas, TXU is staking its future on coal - the dirtiest of all fuels used to generate electricity. Last spring the company announced plans to build 11 new coal-fired power plants in Texas at a cost of nearly $1 billion apiece. That has set off a firestorm of opposition - lawsuits, pickets, petitions, anti-TXU Web sites, lobbying at the state capitol, even a hunger strike.

One environmental group calculated that the new plants would generate 78 million tons of CO2 each year - more than the emissions of Sweden, Denmark, or Portugal. Texas already ranks first in the U.S. in carbon emissions.

"This is an $11 billion step in the wrong direction," fumes David Hawkins, a climate-change expert at the Natural Resources Defense Council. "And when you're marching backward with $11 billion, you can do a lot of damage."

But TXU is just getting started. The company says it will soon unveil plans to build another eight to 15 coal-burning plants outside Texas, counting on economies of scale to hold costs down. TXU also operates strip mines, which supply 70 percent of the coal it burns.

To explore the logic behind TXU's plans, I went to see Mike McCall, the company executive in charge of selling the coal plants to Texans. A burly, easygoing 49-year-old, McCall is a coal man to his core. He went to the college at the Missouri School of Mines with the financial help of Peabody Coal, the nation's largest producer, worked in coal mines in Illinois, ran a private railroad that shipped coal, and climbed the ladder at TXU to become head of its wholesale electricity unit.

McCall's argument on behalf of coal is straightforward. Coal is abundant, and it is mined in the U.S. It's cheaper than natural gas and more reliable than wind or solar power.

TXU would like to generate more nuclear energy - it plans to apply for permits to build up to three nukes in 2008 - but getting a green light from industry-friendly Texas regulators for coal plants, even with all the brouhaha, is a lot easier than obtaining the federal government's approval to build a nuclear power plant. No new permits for nukes have been issued since the 1970s.

That leaves coal as the best fuel available to satisfy America's ever-expanding appetite for electricity - all our computers and big-screen TVs and air-conditioned homes and offices need juice.

Currently, coal supplies about 52 percent of the nation's electricity, and U.S. demand for electric power is projected to grow by about 1.5 percent a year. (Nationally, more than 150 new coal plants are planned.) With its hot summers, fast-growing population, and expanding industrial base, Texas has an even more urgent need for power; peak demand could exceed supply as soon as the summer of 2008.

"If you care about national security and you care about energy independence," McCall says, "you want to find a way to use coal that's acceptable to the public."

As for climate change, he allows that it's an "important and long-term issue" and says TXU's plants will be designed so that someday they can be retrofitted to capture and store carbon. Right now, there's no way to capture carbon from coal-burning plants. But, McCall says, "we have confidence that technology will come along."

That, say TXU's critics, is hokum.
A long list of opponents

TXU is fighting not just the usual activists from the Sierra Club and Public Citizen but environmental groups like Environmental Defense and the Natural Resources Defense Council, which are ordinarily business-friendly. (With GE, DuPont, and others, they formed the coalition of big companies to lobby for carbon caps.)

Opposing the plants, too, are the Democratic mayors of Dallas and Houston, Texas celebrities such as rocker Don Henley, and prominent businesspeople, including real estate scion Trammell S. Crow and Garrett Boone, the chairman of the Container Store.

Albert J. Huddleston, a pro-business Republican who helped finance the Swift Boat television ads against John Kerry in 2004, is funding a lawsuit against TXU because he's concerned about mercury contamination of lakes and fish.

So intense is the fervor that a 50-year-old activist, Karen Hadden, went on a ten-day hunger strike last fall to call attention to the issue. "It is certainly an uphill battle," Hadden says, "but we're trying to keep the pressure on every front."

Opponents have sued Texas regulators as well as TXU. They are asking the Texas legislature to impose a moratorium on new coal plants. They have taken their case to Wall Street, where Merrill Lynch, Morgan Stanley and Citigroup, the lead underwriters for the plants, have come under fire. They are telling the TXU story in Washington as Congress moves closer to setting mandatory caps on greenhouse-gas emissions.

"TXU is becoming the poster child for why we need mandatory federal legislation," says Jim Marston, who runs Environmental Defense's Texas operations.

Climate Change News: Roundup of Climate Blog Stories (#2)

Roundup of recent climate change stories bellow, many of these stories have been highlighted in the sidebar of Climate Change News/Action/Resources as 'Top Climate Blog Stories'.

This week the blogosphere has been dealing with questions of transport, future energy solutions, negawatts as a source of energy, carbon offsets, weird weather, china's development and environmental devastation, and continued business innovation.

In the case of transport, the main developments this week have been increasing concern over the rapid expansion of corn based ethanol in the US and more broadly about the global blueprint for biofuels. Advancements in ultra-capacitors have been seen, and these promise to increase the durability and performance of electric cars which both utilise energy more efficiently and promise a low emissions route to mobility if renewables can be used to source this power.


The electricity sector as always has shown some of the more positive trends. Solar power is expanding dramatically, Sharp's largest plant will soon have a production capacity of 800MW per year--a large fraction of global manufacturing capacity just a couple of years ago. The rapid rise of both solar and wind power is being supported by record, and rapidly increasing CleanTech investment. Wind power contracts have grown to 1400MW for Siemens in the US, a figure that would have seemed enormous just a couple of years ago; today several wind farms either already built or in the planning will individually approach this size. In a significant partnership, India and Europe are starting to undertake serious discussions of how to scale up wind power across the sub-continent. All of this development is starting to be integrated, visions of a 'Green Unifying Theory' are being developed. Many discussions are taking place about the contents of such a theory, one component that isn't to likely to be included is coal. That's a shame because in a reversal of the famous dash-to-gas, the UK seems to be undergoing a somewhat smaller but rather disconcerting career-to-coal.

Meanwhile, in efficiency, negawatts have been in the news again, a report just release in Texas has found that they don't actually need new coal, or wind, they need efficiency and this option is remarkably affordable. Technological developments that may help with such improvements in the future include frequency regulation using flywheels that produce a tiny fraction of the GHG emissions associated with typical regulation facilities.

After 'Carbon Neutral' made it as word of the year by the Oxford English Dictionary it was perhaps predictable that there would be more scrutiny of this nascent market. This has proved to be the case. In the UK the Environmental Audit Comitte has started an investigation and the UK government is planning offset standards. I recently also made my views on the topic clear and supported my preferred company, MyClimate.

All of which has become even more relevant, and discussed due to the extremely weird 'winter' weather occurring throughout the northern hemisphere. Weather that is having many unforceen impacts.

In Asian news, ASEAN has come to an agreement on encouraging energy efficiency, cheap energy and biofules (ahem..). The tensions between economic development, energy security and climate change are really showing themselves. China's continuing rapid expansion to the detriment of its environment has been written about over at china dialogue in a two piece article. Meanwhile, more on Bejing's efforts to clean up prior to the 2012 Olympics can be found here.

Finishing off with some good news, Marks and Spencer's (M&S) has join the growing ranks of businesses prepared to take on (to some degree) the issues of climate change. This general willingness can also be seen the in the continued growth of the Climate Group which has just acquired three new members.

Climate Change News: Roundup of Climate Blog Stories (#1)

Roundup of recent climate change stories bellow, many of these stories have been highlighted in the sidebar of Climate Change News/Action/Resources as 'Top Climate Blog Stories'.

1. Biofuel concerns increase. Lester Brown of the Earth Policy Institute (and Plan B 2.0) has called for a halt to the construction of ethanol production facilities due to increasing competition between corn for fuel and cars.

2. Democrats may form global warming committe. This is quite speculative at the moment but could be a highly important development.

3. UK Electricity Sector shifts towards coal usage.

4. European Commission has carried out a study into the impacts of climate change on Europe. When considering the quote bellow, please remember that Europe is far more able to adapt to climate change then many contries of the south, and is also less vulnerable for geographic and business reasons.

“As many as 87,000 extra deaths a year would occur annually by 2071, assuming a three degree centigrade temperature rise. If efforts to curb greenhouse gas emissions limit the rise to 2.2 degrees, additional mortalities would be 36,000 a year.”

5. Ayles Ice Shelf detaches from the Canadian coast, taking 3000 year old ice out into open water.

6. Jacques Chirac has announced plans for an international conference with the aim of agreeing to place taxes on good imported from countries which are not signed up to the successor to Kyoto. Interesting idea, removes the penalty for acting first that most countries are afraid of. The Uk Green party and several NGO's have been calling for something of this kind for some time. I don't know if there is the political support at the moment but i think that in the absence of sufficient progress at the UNFCCC level that this issue could have its time within the next 10 years. A very interesting story to watch.