Story Originally Appeared in The New York Times
LONDON — Royal Dutch Shell, Europe’s largest oil company, surprised markets on Tuesday by naming Ben van Beurden to succeed Peter Voser as chief executive on Jan. 1.
Mr. van Beurden, a Dutch national who is 55, has headed Shell’s large marketing and refining business since January and has been a key player in its liquefied natural gas business, in which Shell is the world leader among publicly traded oil companies.
He was chosen by Shell’s board over better-known candidates including Andrew Brown, head of exploration and production; Marvin Odum, head of the company’s Americas business; and Simon Henry, the chief financial officer, well-known to investors.
“This will be something of a surprise to analysts who widely expected” Mr. Henry to be chosen, said Peter Hutton, an analyst at RBC Capital Markets in London. “However, it was always clear that Shell would appoint the person it felt had the best combination of skills for the job, not necessarily the best known to the external community.”
Shell shares rose Tuesday in London..
Mr. Voser had said in May that he would step down next year after less than five years in the top job, news that also surprised the markets. He said he wanted to spend more time with his family, which had remained in his native Switzerland while he worked at Shell headquarters in London.
Previously chief financial officer, Mr. Voser had helped stabilize Shell after a scandal over misstating oil and gas reserves. While uncomfortable in the limelight, he is thought to have improved the implementation of big projects like the $20 billion Pearl gas-to-liquids plant in Qatar that have come to distinguish Shell.
The standard spot for chief executives-in-waiting at major oil companies is the exploration and production division, which is usually the big profit earner.
Shell differs from other major oil major companies like BP by stressing big long-term projects that lack the tremendous potential financial rewards of oil exploration but produce steady returns with lower risk.
Liquefied natural gas tends to earn returns in the relatively modest 10 percent to 15 percent range, analysts say, but it produces steady cash flows for decades with little additional capital expenditure.
Shell has invested around $40 billion in the business in recent years. It hopes to cash in on growing use of gas in China and other developing countries.
It is also one of the few companies that is investing large sums in gas-to-liquids plants, the monster installations required to transform natural gas into fuels like diesel. And it is the leader in the still-unproven technology of building gigantic floating vessels to process liquefied natural gas in remote locations.
Mr. van Beurden was involved in the floating vessels at the early stages and is also credited by some with turning around the now-profitable chemicals business when he headed it from 2006 to 2012. He reconfigured Shell’s American chemical plants to use low-priced gas feedstock rather than oil.
In an industry where access to oil and gas is increasingly competitive, Shell hopes a demonstrated ability to design and manage megaprojects will give it a competitive advantage.
Mr. van Beurden’s experience appears tailored to Shell’s strategy. For instance, he has 10 years in Shell’s liquefied natural gas business. That business, along with gas-to-liquids, earned Shell $9.4 billion of its $25.1 billion in profit last year.
“Ben will continue to drive and further develop the strategic agenda that we have set out, to generate competitive returns for our shareholders,” Shell’s chairman, Jorma Ollila, said in a statement Tuesday.
Tuesday, July 9, 2013
Tuesday, June 25, 2013
Story Originally Appeared in the Los Angeles Times
President Obama plans to roll out the first U.S. regulations designed to cut carbon dioxide emissions from existing power plants by next June, making that the central element of a sweeping initiative to rein in emissions of gases that drive climate change.
Obama plans to describe his proposals in a speech Tuesday afternoon at Georgetown University in Washington, D.C. He is expected to unveil a strategy that works across the federal government to pare greenhouse gases sharply by the end of the decade, senior White House officials said.
The approach leans heavily on executive-branch actions, an acknowledgment that the current Congress will not take action to address climate change.
“It is a step-by-step approach that creates a bucket of cuts," said Jody Freeman, director of the Environmental Law Program at Harvard Law School who was a White House adviser on climate change in 2009-10. “What’s important to remember is that the president is behind this, and that means the starter’s pistol has gone off.”
The administration’s efforts would include plans to open more federal lands for renewable-energy development, have some public housing units powered by renewable energy, and develop new energy efficiency standards for major appliances, said senior White House officials who briefed reporters on the condition of anonymity.
Opposition to the plan already has begun to coalesce. Senate Minority Leader Mitch McConnell (R-Ky.) dubbed the climate change effort “a national energy tax” because it might raise the cost of certain goods and some types of energy, particularly electricity generated by burning coal.
Power plants emit about 40% of the country’s greenhouse gases, making them the single biggest source. Curtailing their emissions would build on rules the administration introduced during Obama's first term to address climate change, such as measures to require that new cars and trucks get better mileage.
But regulating existing power plants may prove a bigger, more legally risky effort than other regulations the administration has promulgated, independent analysts said.
More than a year ago, the Environmental Protection Agency proposed a rule that would set carbon dioxide standards for new power plants. That final rule was due out in the spring but was delayed. Now, it appears that the administration has scrapped it and will propose a different standard for new plants in September.
That means the regulation of new power plants will go into effect later than planned. Even with those delays, a revised rule will almost certainly face court challenges by the power industry.
A proposal to regulate existing plants seems likely to generate even more opposition than the rule on new plants.
Obama plans to direct the EPA “to have a proposal out in June a year from now, finalizing one year beyond that, and then working directly with the states,” a White House official said.
“The overarching goal here is to make sure we are doing the work at the front end so that we get these policies as far down the road as possible," the White House official said, a tacit acknowledgment that the regulatory process may run longer than Obama's tenure.
It’s unclear how much the various parts of the climate change plan would cost or how much revenue through exports or taxes they would generate. Much depends on the standards agencies set for pollution or energy efficiency or for fast-tracking renewable power.
Senior White House officials said the administration would not ask Congress for additional funding to back the climate effort.
The president’s plan tries to sweeten the pot for fossil-fuel companies that might feel threatened by new emission standards. It makes up to $8 billion available for loan guarantees for "advanced fossil fuel energy," which would include technologies to reduce carbon emissions from coal-fired plants.
Obama also wants agencies to plan for the impact of climate change. The plan “will direct federal agencies to make sure that any new road, building or project funded with taxpayer dollars is built to withstand the increased flood risks from extreme weather and sea level rise,” a senior White House official said.
President Obama plans to roll out the first U.S. regulations designed to cut carbon dioxide emissions from existing power plants by next June, making that the central element of a sweeping initiative to rein in emissions of gases that drive climate change.
Obama plans to describe his proposals in a speech Tuesday afternoon at Georgetown University in Washington, D.C. He is expected to unveil a strategy that works across the federal government to pare greenhouse gases sharply by the end of the decade, senior White House officials said.
The approach leans heavily on executive-branch actions, an acknowledgment that the current Congress will not take action to address climate change.
“It is a step-by-step approach that creates a bucket of cuts," said Jody Freeman, director of the Environmental Law Program at Harvard Law School who was a White House adviser on climate change in 2009-10. “What’s important to remember is that the president is behind this, and that means the starter’s pistol has gone off.”
The administration’s efforts would include plans to open more federal lands for renewable-energy development, have some public housing units powered by renewable energy, and develop new energy efficiency standards for major appliances, said senior White House officials who briefed reporters on the condition of anonymity.
Opposition to the plan already has begun to coalesce. Senate Minority Leader Mitch McConnell (R-Ky.) dubbed the climate change effort “a national energy tax” because it might raise the cost of certain goods and some types of energy, particularly electricity generated by burning coal.
Power plants emit about 40% of the country’s greenhouse gases, making them the single biggest source. Curtailing their emissions would build on rules the administration introduced during Obama's first term to address climate change, such as measures to require that new cars and trucks get better mileage.
But regulating existing power plants may prove a bigger, more legally risky effort than other regulations the administration has promulgated, independent analysts said.
More than a year ago, the Environmental Protection Agency proposed a rule that would set carbon dioxide standards for new power plants. That final rule was due out in the spring but was delayed. Now, it appears that the administration has scrapped it and will propose a different standard for new plants in September.
That means the regulation of new power plants will go into effect later than planned. Even with those delays, a revised rule will almost certainly face court challenges by the power industry.
A proposal to regulate existing plants seems likely to generate even more opposition than the rule on new plants.
Obama plans to direct the EPA “to have a proposal out in June a year from now, finalizing one year beyond that, and then working directly with the states,” a White House official said.
“The overarching goal here is to make sure we are doing the work at the front end so that we get these policies as far down the road as possible," the White House official said, a tacit acknowledgment that the regulatory process may run longer than Obama's tenure.
It’s unclear how much the various parts of the climate change plan would cost or how much revenue through exports or taxes they would generate. Much depends on the standards agencies set for pollution or energy efficiency or for fast-tracking renewable power.
Senior White House officials said the administration would not ask Congress for additional funding to back the climate effort.
The president’s plan tries to sweeten the pot for fossil-fuel companies that might feel threatened by new emission standards. It makes up to $8 billion available for loan guarantees for "advanced fossil fuel energy," which would include technologies to reduce carbon emissions from coal-fired plants.
Obama also wants agencies to plan for the impact of climate change. The plan “will direct federal agencies to make sure that any new road, building or project funded with taxpayer dollars is built to withstand the increased flood risks from extreme weather and sea level rise,” a senior White House official said.
Tuesday, June 18, 2013
Gov seeks water-tight ballast rules
Story Originally Appeared in The Detroit News
Regional summit to address Great Lakes shipping demands
Gov. Rick Snyder plans to push this weekend for strengthening ballast water disposal requirements for ocean-going freighters that travel the Great Lakes during a summit of regional leaders on Mackinac Island.
In 2007, Michigan lawmakers created the region's toughest requirements for shipping vessels to unload excess water that can carry invasive species, such as zebra and quagga mussels that often litter Great Lakes beaches.
But surrounding states and Canadian provinces have not followed suit, so Michigan officials hope to kick-start a dialogue about the issue during the Council of Great Lakes Governors summit Snyder is hosting at the Grand Hotel.
"I would like to see at some point that we get a common standard," Snyder said Friday after kicking off the summit.
Ships are circumventing Michigan's law by "moving out of Michigan waters and dumping ballast water," said Dan Wyant, director of the Michigan Department of Environmental Quality.
Creating consistent guidelines throughout the region for ocean-going ships and their handling of ballast water needs attention, said James Clift, policy director for the Michigan Environmental Council.
Joel Brammeier, president of the Chicago-based Alliance for the Great Lakes, said his group is interested in the region's governments collaborating on an early detection and rapid response for invasive species.
The invasive aquatic species threat is a prime opportunity for teamwork, Brammeier said, since "when a new invader shows up … eventually it's a problem for everybody."
Some Michigan lawmakers want to roll back the ballast water requirements because of opposition from shipping companies.
In addition to water quality, top elected officials from the Great Lakes states and provinces are expected to discuss economic, ecological and transportation issues facing the region during the weekend gathering.
Illinois Gov. Pat Quinn, Wisconsin Gov. Scott Walker, Indiana Gov. Mike Pence and Ontario Premier Kathleen Wynne are scheduled to attend the summit, said Jon Allan, director of the DEQ's Office of the Great Lakes.
Quebec, Pennsylvania, New York, Ohio and Minnesota are sending representatives, he said.
"These things are very good incubators for thinking about what collaboration in the region needs to look like," Allan said.
The governors and their representatives are expected to announce resolutions and agreements on new policy directives for Great Lakes issues on the environment, trade, transportation and water quality and levels.
"I think it's a great opportunity to say the Great Lakes are really important," Snyder said in an interview with The Detroit News. "I don't think we're going to solve all of the issues because there are differences of view between the states."
Snyder said he's pushing the region's governors and Canadian officials to forge stronger economic ties.
"We can do a better job marketing kind of the whole basin in terms of saying we're a big economy," Snyder said. "If you draw that circle (from) Montreal to Chicago, it's a third of the North American economy."
The Great Lakes face myriad threats such as falling lake levels and potential water diversions that could create precedents for future withdrawals.
The Michigan Environmental Council is monitoring the status of a requested water diversion from Lake Michigan by the Wisconsin town of Waukesha. The state of Wisconsin is reviewing the request after Waukesha's aquifer became contaminated with radium, and the way officials handle the application could set a precedent for the region.
Regional summit to address Great Lakes shipping demands
Gov. Rick Snyder plans to push this weekend for strengthening ballast water disposal requirements for ocean-going freighters that travel the Great Lakes during a summit of regional leaders on Mackinac Island.
In 2007, Michigan lawmakers created the region's toughest requirements for shipping vessels to unload excess water that can carry invasive species, such as zebra and quagga mussels that often litter Great Lakes beaches.
But surrounding states and Canadian provinces have not followed suit, so Michigan officials hope to kick-start a dialogue about the issue during the Council of Great Lakes Governors summit Snyder is hosting at the Grand Hotel.
"I would like to see at some point that we get a common standard," Snyder said Friday after kicking off the summit.
Ships are circumventing Michigan's law by "moving out of Michigan waters and dumping ballast water," said Dan Wyant, director of the Michigan Department of Environmental Quality.
Creating consistent guidelines throughout the region for ocean-going ships and their handling of ballast water needs attention, said James Clift, policy director for the Michigan Environmental Council.
Joel Brammeier, president of the Chicago-based Alliance for the Great Lakes, said his group is interested in the region's governments collaborating on an early detection and rapid response for invasive species.
The invasive aquatic species threat is a prime opportunity for teamwork, Brammeier said, since "when a new invader shows up … eventually it's a problem for everybody."
Some Michigan lawmakers want to roll back the ballast water requirements because of opposition from shipping companies.
In addition to water quality, top elected officials from the Great Lakes states and provinces are expected to discuss economic, ecological and transportation issues facing the region during the weekend gathering.
Illinois Gov. Pat Quinn, Wisconsin Gov. Scott Walker, Indiana Gov. Mike Pence and Ontario Premier Kathleen Wynne are scheduled to attend the summit, said Jon Allan, director of the DEQ's Office of the Great Lakes.
Quebec, Pennsylvania, New York, Ohio and Minnesota are sending representatives, he said.
"These things are very good incubators for thinking about what collaboration in the region needs to look like," Allan said.
The governors and their representatives are expected to announce resolutions and agreements on new policy directives for Great Lakes issues on the environment, trade, transportation and water quality and levels.
"I think it's a great opportunity to say the Great Lakes are really important," Snyder said in an interview with The Detroit News. "I don't think we're going to solve all of the issues because there are differences of view between the states."
Snyder said he's pushing the region's governors and Canadian officials to forge stronger economic ties.
"We can do a better job marketing kind of the whole basin in terms of saying we're a big economy," Snyder said. "If you draw that circle (from) Montreal to Chicago, it's a third of the North American economy."
The Great Lakes face myriad threats such as falling lake levels and potential water diversions that could create precedents for future withdrawals.
The Michigan Environmental Council is monitoring the status of a requested water diversion from Lake Michigan by the Wisconsin town of Waukesha. The state of Wisconsin is reviewing the request after Waukesha's aquifer became contaminated with radium, and the way officials handle the application could set a precedent for the region.
Thames River Waste Repels Olympic Rower Amid Tunnel Works
Story Appeared in Bloomberg News
Andy Triggs Hodge, a gold medal-winning rower at the Beijing and London Olympics, stopped training on Britain’s most famous river when it turned out water wasn’t his biggest obstacle: raw sewage on the Thames was.
The capital’s sewer network, built by Victorian engineers after the “Great Stink” of 1858, can’t cope. Too many people, too much waste. Thames Water Utilities Ltd. apologized in January after London properties were damaged by sewage overflow.
Help is on the way. A 4.1 billion-pound ($6.2 billion) “super-sewer” is on the drawing board, the longest and deepest tunnel ever to be built in mainland Britain and set to follow the Thames for 20 miles, passing such landmarks as Buckingham Palace. Kemble Water Holdings Ltd.’s Thames Water unit, with 14 million customers in the London area, hired UBS AG (UBS) to help raise as much as 3.5 billion pounds for the works.
“Once you explain to people that the river banks their children are playing in are not actually mud at all, they support the project,” Michael Gerrard, managing director of the Thames Tideway Tunnel project, said in an interview.
The existing sewer network’s tunnels and arched caverns were constructed to serve half the current population. This means at least 30 million tons of excrement and waste spill into the river every year, sometimes remaining in the water as long as three months before washing out to sea.
No wonder the English rower Triggs Hodge, 34, took his training to Reading. Powering oars through toilet paper, effluent and other unmentionables while practicing on the Thames took a toll on the double World Champion.
“In the summer when things warmed up, the sewage and debris that collected on the riverbanks got pretty smelly,” he said. “The effects on our health became a major concern.”
Laws Breached
That’s exposed the U.K. to potential fines for breaching European law on treatment of wastewater. Penalties could amount to 620,000 pounds each day Britain is deemed in breach, or as much as 226 million pounds a year, according to Thames Tideway.
The European Court of Justice in October ruled the U.K. failed to meet its obligations. The commission said it’s too early to speculate how much any fine may be.
The complexities of building a 7.2 meter-wide (24 feet) concrete tunnel extending west to east along the course of the river will require a new type of funding solution, according to the project’s financial adviser KPMG LLP.
Tight government pockets, and the late Prime Minister Margaret Thatcher’s 1989 privatization of the industry, point to a privately financed plan. The problem is finding investors for such project risks, said Richard Threlfall, head of the firm’s U.K. infrastructure, building and construction unit.
‘Sheer Amount’
“It’s about the sheer amount of finance required and the risk of tunneling 100 meters underneath the Thames,” he said. “When you get to that scale, it’s impossible for even the biggest international contractors to take the risk on balance sheets.”
To lure investors, Thames Tideway proposes to separate out the tunnel as a single asset, concentrating risk in one vehicle. That company will raise debt and equity in the markets and from sovereign wealth and pension funds, according to Threlfall.
Plans for the tunnel that would intercept overflow points along the river and shunt excess sewage to treatment plants are being finalized, with construction to begin as early as 2016 amid a wider government effort to secure investment in its aging infrastructure.
Investor Returns
The government agreed to give contingent financial support to cover “exceptional risks” in its 2011 National Infrastructure Plan. The model will receive special treatment by Britain’s water regulator, giving investors certainty of no changes during their investment period.
The plan is unprecedented, ripe for replication elsewhere for similarly scaled or high-risk projects, Threlfall said.
The financing model will help drive returns to investors in line with the water industry, or about 10 percent, according to Thames Tideway’s Gerrard.
Infrastructure and pension funds, current investors in U.K. water, are likely to avoid those construction risks, said Christopher Gasson, publisher of Global Water Intelligence in Oxford, England.
The project will need a “reasonably sizable” government guarantee, he said. “If you are a sewer rat, you will probably have to make do with your current accommodation.”
Improvements couldn’t come soon enough for Triggs Hodge.
Changing weather patterns mean short, sharp downpours are more frequent and overflows are increasing, according to Triggs Hodge and the Friends of the Earth group.
Sewage Spills
As little as 2 millimeters (0.08-inch) of rain can cause some London sewer tunnels to reach capacity and spill untreated waste into the Thames from 57 overflow points.
Raw industrial, animal and human sewage in the river that fermented in a warmer-than-usual summer spurred creation of the current sewer system after Parliament drapes were doused in a mix of chloride and lime in 1858 to negate the stench and lawmakers debated relocating upsteam to cleaner air.
As it is, about once a week untreated sewage overflows into the river. “People have no idea how bad the situation is,” Thames Tideway’s Gerrard said.
The lack of a system large enough to cope with London’s rising population is hampering growth as the city seeks to add new homes and businesses to revive Britain’s economy, according to Thames Water, the U.K.’s largest water supplier that’s proposing the “super sewer” to expand capacity.
Singapore Example
Tunnel program manager CH2M Hill Inc. is working on similar projects in Doha, Abu Dhabi and Singapore, which is investing more than $2.4 billion digging tunnels to collect and treat its waste. Cities including Helsinki and Washington have similar projects, and Paris has a 3.4 billion-pound program to invest in upgrading its network.
“The European water utility industry is facing significant challenges in these uncertain times,” said Jonathan Refoy, a spokesman from CH2M. “Many of these change drivers -- workforce shortages, customer demands, financial constraints, aging infrastructure, security and emergency response, population growth, climate change, regulatory compliance -- have been around for some time but many are new or emerging.”
It’s time for change, said Jenny Bates of Friends of the Earth. “Having raw sewage entering the Thames untreated is unacceptable in the 21st century.”
Fish Deaths
As many as 125 species of fish have been documented in the Thames, including salmon, sea trout and eel, and there have been several “really bad” incidents when large numbers died due to sewage overflows, Bates said. In June 2011, overflow into the river after heavy rains caused the loss of as many as 26,000 fish, according to Thames Water.
The Tideway tunnel is designed to help. It’s the largest of three projects being developed by Thames Water to boost network capacity. The utility is investing 675 million pounds to upgrade five of the city’s main sewage treatment plants by 2014 and is also building the Lee Tunnel to deal with spills into the Lee River, a Thames tributary.
The cost won’t be insignificant. London residents can expect to see annual wastewater bills, which at about 123 pounds are the lowest in the country, rise about 70 pounds to 80 pounds, or 57 percent. This would bring them in line with the national average, according to Thames Water.
The project’s latest plan involves 24 construction sites across London. With work expected to start within three years, the tunnel should be operating by 2023.
A planning application for the project that will capture untreated waste from 34 of the river’s most polluting overflow points was submitted in March.
Meanwhile, Triggs Hodge rarely rows on the Thames except for one or two race events.
“Literally what you flush out of your toilet will appear in the river and just because the pipes aren’t big enough and there isn’t the capacity,” he said. “The bottom line is the river is an excellent venue for rowers. Its potential is huge and it’s such a shame.”
Andy Triggs Hodge, a gold medal-winning rower at the Beijing and London Olympics, stopped training on Britain’s most famous river when it turned out water wasn’t his biggest obstacle: raw sewage on the Thames was.
The capital’s sewer network, built by Victorian engineers after the “Great Stink” of 1858, can’t cope. Too many people, too much waste. Thames Water Utilities Ltd. apologized in January after London properties were damaged by sewage overflow.
Help is on the way. A 4.1 billion-pound ($6.2 billion) “super-sewer” is on the drawing board, the longest and deepest tunnel ever to be built in mainland Britain and set to follow the Thames for 20 miles, passing such landmarks as Buckingham Palace. Kemble Water Holdings Ltd.’s Thames Water unit, with 14 million customers in the London area, hired UBS AG (UBS) to help raise as much as 3.5 billion pounds for the works.
“Once you explain to people that the river banks their children are playing in are not actually mud at all, they support the project,” Michael Gerrard, managing director of the Thames Tideway Tunnel project, said in an interview.
The existing sewer network’s tunnels and arched caverns were constructed to serve half the current population. This means at least 30 million tons of excrement and waste spill into the river every year, sometimes remaining in the water as long as three months before washing out to sea.
No wonder the English rower Triggs Hodge, 34, took his training to Reading. Powering oars through toilet paper, effluent and other unmentionables while practicing on the Thames took a toll on the double World Champion.
“In the summer when things warmed up, the sewage and debris that collected on the riverbanks got pretty smelly,” he said. “The effects on our health became a major concern.”
Laws Breached
That’s exposed the U.K. to potential fines for breaching European law on treatment of wastewater. Penalties could amount to 620,000 pounds each day Britain is deemed in breach, or as much as 226 million pounds a year, according to Thames Tideway.
The European Court of Justice in October ruled the U.K. failed to meet its obligations. The commission said it’s too early to speculate how much any fine may be.
The complexities of building a 7.2 meter-wide (24 feet) concrete tunnel extending west to east along the course of the river will require a new type of funding solution, according to the project’s financial adviser KPMG LLP.
Tight government pockets, and the late Prime Minister Margaret Thatcher’s 1989 privatization of the industry, point to a privately financed plan. The problem is finding investors for such project risks, said Richard Threlfall, head of the firm’s U.K. infrastructure, building and construction unit.
‘Sheer Amount’
“It’s about the sheer amount of finance required and the risk of tunneling 100 meters underneath the Thames,” he said. “When you get to that scale, it’s impossible for even the biggest international contractors to take the risk on balance sheets.”
To lure investors, Thames Tideway proposes to separate out the tunnel as a single asset, concentrating risk in one vehicle. That company will raise debt and equity in the markets and from sovereign wealth and pension funds, according to Threlfall.
Plans for the tunnel that would intercept overflow points along the river and shunt excess sewage to treatment plants are being finalized, with construction to begin as early as 2016 amid a wider government effort to secure investment in its aging infrastructure.
Investor Returns
The government agreed to give contingent financial support to cover “exceptional risks” in its 2011 National Infrastructure Plan. The model will receive special treatment by Britain’s water regulator, giving investors certainty of no changes during their investment period.
The plan is unprecedented, ripe for replication elsewhere for similarly scaled or high-risk projects, Threlfall said.
The financing model will help drive returns to investors in line with the water industry, or about 10 percent, according to Thames Tideway’s Gerrard.
Infrastructure and pension funds, current investors in U.K. water, are likely to avoid those construction risks, said Christopher Gasson, publisher of Global Water Intelligence in Oxford, England.
The project will need a “reasonably sizable” government guarantee, he said. “If you are a sewer rat, you will probably have to make do with your current accommodation.”
Improvements couldn’t come soon enough for Triggs Hodge.
Changing weather patterns mean short, sharp downpours are more frequent and overflows are increasing, according to Triggs Hodge and the Friends of the Earth group.
Sewage Spills
As little as 2 millimeters (0.08-inch) of rain can cause some London sewer tunnels to reach capacity and spill untreated waste into the Thames from 57 overflow points.
Raw industrial, animal and human sewage in the river that fermented in a warmer-than-usual summer spurred creation of the current sewer system after Parliament drapes were doused in a mix of chloride and lime in 1858 to negate the stench and lawmakers debated relocating upsteam to cleaner air.
As it is, about once a week untreated sewage overflows into the river. “People have no idea how bad the situation is,” Thames Tideway’s Gerrard said.
The lack of a system large enough to cope with London’s rising population is hampering growth as the city seeks to add new homes and businesses to revive Britain’s economy, according to Thames Water, the U.K.’s largest water supplier that’s proposing the “super sewer” to expand capacity.
Singapore Example
Tunnel program manager CH2M Hill Inc. is working on similar projects in Doha, Abu Dhabi and Singapore, which is investing more than $2.4 billion digging tunnels to collect and treat its waste. Cities including Helsinki and Washington have similar projects, and Paris has a 3.4 billion-pound program to invest in upgrading its network.
“The European water utility industry is facing significant challenges in these uncertain times,” said Jonathan Refoy, a spokesman from CH2M. “Many of these change drivers -- workforce shortages, customer demands, financial constraints, aging infrastructure, security and emergency response, population growth, climate change, regulatory compliance -- have been around for some time but many are new or emerging.”
It’s time for change, said Jenny Bates of Friends of the Earth. “Having raw sewage entering the Thames untreated is unacceptable in the 21st century.”
Fish Deaths
As many as 125 species of fish have been documented in the Thames, including salmon, sea trout and eel, and there have been several “really bad” incidents when large numbers died due to sewage overflows, Bates said. In June 2011, overflow into the river after heavy rains caused the loss of as many as 26,000 fish, according to Thames Water.
The Tideway tunnel is designed to help. It’s the largest of three projects being developed by Thames Water to boost network capacity. The utility is investing 675 million pounds to upgrade five of the city’s main sewage treatment plants by 2014 and is also building the Lee Tunnel to deal with spills into the Lee River, a Thames tributary.
The cost won’t be insignificant. London residents can expect to see annual wastewater bills, which at about 123 pounds are the lowest in the country, rise about 70 pounds to 80 pounds, or 57 percent. This would bring them in line with the national average, according to Thames Water.
The project’s latest plan involves 24 construction sites across London. With work expected to start within three years, the tunnel should be operating by 2023.
A planning application for the project that will capture untreated waste from 34 of the river’s most polluting overflow points was submitted in March.
Meanwhile, Triggs Hodge rarely rows on the Thames except for one or two race events.
“Literally what you flush out of your toilet will appear in the river and just because the pipes aren’t big enough and there isn’t the capacity,” he said. “The bottom line is the river is an excellent venue for rowers. Its potential is huge and it’s such a shame.”
Better batteries could revolutionize solar, wind power
Story Appeared in USA TODAY
In February, California, which mandates that 33% of its electricity come from renewable sources by 2020, required a Los Angeles-area utility to ensure some capacity comes from energy storage. On May 1, Germany, which is shuttering its nuclear power plants as it boosts renewables, began subsidizing homeowners' purchases of batteries to store power from solar panels. China's five-year plan calls for 5% of all electricity to be stored by 2020. In the United States, about 2% of electric capacity is pumped hydro storage, the most common form of energy storage.
The global market for storing power from solar panels is forecast to explode, from less than $200 million in 2012 to $19 billion by 2017, according to a report this month by IMS Research.
One factor driving this growth is the plummeting price of renewables, especially solar panels that have fallen at least 60% since the beginning of 2011. As a result, industry groups report historic growth as U.S. electric capacity from solar panels jumped 76% and from wind turbines, 28%, last year alone.
OBSTACLES AHEAD
Still, batteries face obstacles, including cost and safety. Lithium-ion batteries aboard two Boeing 787s jets failed in January, causing a fire on one and smoke on the other. In March, batteries from the same manufacturer caused problems in two Mitsubishi vehicles: a hybrid Outlander car overheated and an all-electric i-MiEV caught fire during testing at an assembly plant.
While the EV industry says these incidents are the exception rather than the rule, money has also been a problem. In October, Massachusetts-based A123 ,a lithium-ion battery manufacturer that spent $132 million in federal stimulus funds, filed for bankruptcy. In December, Wanxiang American, the U.S. arm of a Chinese automotive parts giant, bought A123's technology.
Toyota's Jaycie Chitwood said lithium-ion batteries are just too expensive to make electric cars cost competitive without subsidies. Speaking at the Advanced Energy 2013 conference last month in New York City, she said Toyota is expanding its line of electric vehicles to meet the U.S. government's fuel-efficiency targets — not because they're profitable. She said it gives a $14,000 discount for each new electric RAV4.
Chitwood said a major battery advance is needed. Toyota is working on several alternatives, including cheaper, longer-range batteries that use magnesium instead of lithium. Commercialization, though, is years away.
"Batteries continue to be a challenge," especially those for electric vehicles, Esther Takeuchi,chemistry professor at SUNY Stony Brook, said at the same conference. "Things aren't where we'd want them to be, but they're getting closer."
Her university and others, some with federal funding, are looking not only at new chemical mixes but also at nano-sizing the chemical elements — or making them microscopically small — to make them more efficient. Takeuchi said successful batteries often have specific applications, such as lead-acid ones for auto ignition or lithium-iodine for pacemakers. She said lithium-ion has worked well in cellphones and laptops, their initial use.
Batteries will improve "but not at the pace that we've seen in recent years," writes Richard Muller, a physics professor at the University of California-Berkeley, in his 2012 book, Energy for Future Presidents: The Science Behind the Headlines. He says the growing demand for portable electronics sped the development of already-known battery technologies. He says it will take awhile to commercialize new ones such as lithium-air.
Batteries are just one of many ways to store grid-scale energy. The most common is pumped hydroelectric, in which water is sent to a reservoir and released later to run generators.
"Storage is the glue that can hold the grid together," said Matthew Maroon of GE Energy. GE, which opened a $100 million factory in Schenectady, N.Y., to build a sodium nickel chloride battery, announced earlier this month that Invenergy will install its Brilliant wind turbine with Durathon batteries at a Texas wind farm later this year.
The U.S. government is promoting energy storage. In November, the Department of Energy announced grants for 23 R&D projects and picked Argonne National Laboratory in Lemont, Ill., as the first national "innovation hub" for batteries and energy storage. Argonne will receive $120 million over five years for this work.
Batteries are getting particular attention, because they're versatile. While pumped hydro facilities require lots of land and water and are meant for utility-scale projects, batteries can be used anywhere and are easily scalable so they can help power not only a car but a factory.
"Everyone's finally realizing, 'Hey, this works.'... It's the key to the future," says Brad Roberts of the Electricity Storage Association, an industry group. He says the industry's hiccups are part of its growth and adds: "I don't see any hesitation on the part of venture capitalists."
ALTERNATIVES IN THE WORKS
IBM's Allan Schurr is bullish on his company's new lithium-air battery, which takes in oxygen from the air to form a chemical reaction that generates an electric charge. It's lighter and denser than the lithium-ion ones in most of today's electric vehicles, which use heavy metal oxides to drive the chemical reactions that produce power.
"The performance we've seen in tests so far is at or above our expectations," he says. With 500 miles on a single charge, he says, "You'd take the 'range anxiety' out of the equation." The current Nissan Leaf gets up to 75 miles on a single charge, and the Mitsubishi i-MiEV, 62 miles. Schurr expects a prototype to be developed next year, but its commercial availability will take at least five years.
Toshiba has developed a rechargeable lithium-ion battery, the SCiB, that has a new oxide-based material, lithium titanate, that allows quicker charging times. It's used in the Honda Fit's EV and Mitsubishi's i-MiEV.
Huge lithium-ion batteries, filling 53-foot shipping containers, are being used for grid-scale projects. Since September 2011 on a ridge of Laurel Mountain in West Virginia, AES Storage has used them to store 64 megawatts of energy generated by windmills. That capacity, if it ran continuously, would be enough to power nearly 50,000 U.S. households for a year.
Batteries are also taking homes off the grid or providing back-up energy. SolarCity, a California-based solar installer, is piloting a back-up battery for some of its solar projects in California and may extend that option to other states this year. Minnesota-based Juhl Energy's SolarBank system pairs solar panels with batteries. Detroit-based Nextek Power Systems offers a portable off-grid option that combines a solar panel with a battery.
Ontario-based Electrovaya plans to bring to the U.S. market this year a residential system, now being tested in Canada, that would install solar panels and a big-enough lithium-ion battery that homes could go completely off grid. Sankar Das Gupta, the company's CEO, says it would cost less than $10,000 for an average-size home to add such a battery to a solar array.
"There's no one battery technology that is one-size-fits-all," says GE's Maroon. He says each has its own advantages and disadvantages, adding: "The market is big enough for each technology to survive."
American Vanadium says flow batteries that use vanadium last longer and are more powerful than lithium-ion ones, because they absorb and release huge amounts of energy quickly and can do so thousands of times. They can be used for grid-scale projects, and smaller lithium-vanadium batteries can power vehicles.
Radvak says if his project is approved, it could provide 5% of the world's vanadium supply and help reduce battery costs. The Bureau of Land Management, which is examining the project and will hold a public meeting Tuesday in Eureka, says the mine could cause a loss of habitat for greater sage grouse and of acreage for livestock grazing.
"There is no mining operation that doesn't have a consequence," Radvak says. But he says the Eureka mine won't involve moving lots of earth, because the vanadium is in surface deposits and can be simply leached with a sulfuric acid. "It's a very low-risk project," he says.
Radvak says while the U.S. has lagged behind other countries, notably Germany, on energy storage, he expects that in the long run, it will become the world's leader.
GLOSSARY OF COMMON BATTERIES:
Batteries often work the same basic way even if they use different metals. They're mini power plants that produce electricity by creating chemical reactions. As atoms move between two plates of different metals, via a chemical solution called an electrolyte, they produce voltage that is discharged through a metal wire on the other side.
• Lead-acid: (auto ignition). They have atoms pass from a plate of metallic lead through sulfuric acid to a plate of solid lead oxide.
• Lithium-ion (personal electronics, electric vehicles). They have carbon on one end and a metal oxide on the other, using lithium salt in an organic compound as the electrolyte in the middle.
• Lithium-air (still in development; possible uses include electric vehicles). They use lithium metal and oxygen as inputs at the two ends.
• Nickel-cadmium (portable electronics, electric vehicles). Their metal plates are nickel oxide hydroxide and cadmium.
• Sodium-sulfur (electric vehicles, grid-scale storage). A type of molten-salt battery, it's made from liquid sodium and sulfur.
• Vanadium redox flow (grid-scale storage). They use vanadium, a metal named for Vanadis — the Scandinavian goddess of beauty and youth — in different oxidation states to store chemical energy for repeated use.
In February, California, which mandates that 33% of its electricity come from renewable sources by 2020, required a Los Angeles-area utility to ensure some capacity comes from energy storage. On May 1, Germany, which is shuttering its nuclear power plants as it boosts renewables, began subsidizing homeowners' purchases of batteries to store power from solar panels. China's five-year plan calls for 5% of all electricity to be stored by 2020. In the United States, about 2% of electric capacity is pumped hydro storage, the most common form of energy storage.
The global market for storing power from solar panels is forecast to explode, from less than $200 million in 2012 to $19 billion by 2017, according to a report this month by IMS Research.
One factor driving this growth is the plummeting price of renewables, especially solar panels that have fallen at least 60% since the beginning of 2011. As a result, industry groups report historic growth as U.S. electric capacity from solar panels jumped 76% and from wind turbines, 28%, last year alone.
OBSTACLES AHEAD
Still, batteries face obstacles, including cost and safety. Lithium-ion batteries aboard two Boeing 787s jets failed in January, causing a fire on one and smoke on the other. In March, batteries from the same manufacturer caused problems in two Mitsubishi vehicles: a hybrid Outlander car overheated and an all-electric i-MiEV caught fire during testing at an assembly plant.
While the EV industry says these incidents are the exception rather than the rule, money has also been a problem. In October, Massachusetts-based A123 ,a lithium-ion battery manufacturer that spent $132 million in federal stimulus funds, filed for bankruptcy. In December, Wanxiang American, the U.S. arm of a Chinese automotive parts giant, bought A123's technology.
Toyota's Jaycie Chitwood said lithium-ion batteries are just too expensive to make electric cars cost competitive without subsidies. Speaking at the Advanced Energy 2013 conference last month in New York City, she said Toyota is expanding its line of electric vehicles to meet the U.S. government's fuel-efficiency targets — not because they're profitable. She said it gives a $14,000 discount for each new electric RAV4.
Chitwood said a major battery advance is needed. Toyota is working on several alternatives, including cheaper, longer-range batteries that use magnesium instead of lithium. Commercialization, though, is years away.
"Batteries continue to be a challenge," especially those for electric vehicles, Esther Takeuchi,chemistry professor at SUNY Stony Brook, said at the same conference. "Things aren't where we'd want them to be, but they're getting closer."
Her university and others, some with federal funding, are looking not only at new chemical mixes but also at nano-sizing the chemical elements — or making them microscopically small — to make them more efficient. Takeuchi said successful batteries often have specific applications, such as lead-acid ones for auto ignition or lithium-iodine for pacemakers. She said lithium-ion has worked well in cellphones and laptops, their initial use.
Batteries will improve "but not at the pace that we've seen in recent years," writes Richard Muller, a physics professor at the University of California-Berkeley, in his 2012 book, Energy for Future Presidents: The Science Behind the Headlines. He says the growing demand for portable electronics sped the development of already-known battery technologies. He says it will take awhile to commercialize new ones such as lithium-air.
Batteries are just one of many ways to store grid-scale energy. The most common is pumped hydroelectric, in which water is sent to a reservoir and released later to run generators.
"Storage is the glue that can hold the grid together," said Matthew Maroon of GE Energy. GE, which opened a $100 million factory in Schenectady, N.Y., to build a sodium nickel chloride battery, announced earlier this month that Invenergy will install its Brilliant wind turbine with Durathon batteries at a Texas wind farm later this year.
The U.S. government is promoting energy storage. In November, the Department of Energy announced grants for 23 R&D projects and picked Argonne National Laboratory in Lemont, Ill., as the first national "innovation hub" for batteries and energy storage. Argonne will receive $120 million over five years for this work.
Batteries are getting particular attention, because they're versatile. While pumped hydro facilities require lots of land and water and are meant for utility-scale projects, batteries can be used anywhere and are easily scalable so they can help power not only a car but a factory.
"Everyone's finally realizing, 'Hey, this works.'... It's the key to the future," says Brad Roberts of the Electricity Storage Association, an industry group. He says the industry's hiccups are part of its growth and adds: "I don't see any hesitation on the part of venture capitalists."
ALTERNATIVES IN THE WORKS
IBM's Allan Schurr is bullish on his company's new lithium-air battery, which takes in oxygen from the air to form a chemical reaction that generates an electric charge. It's lighter and denser than the lithium-ion ones in most of today's electric vehicles, which use heavy metal oxides to drive the chemical reactions that produce power.
"The performance we've seen in tests so far is at or above our expectations," he says. With 500 miles on a single charge, he says, "You'd take the 'range anxiety' out of the equation." The current Nissan Leaf gets up to 75 miles on a single charge, and the Mitsubishi i-MiEV, 62 miles. Schurr expects a prototype to be developed next year, but its commercial availability will take at least five years.
Toshiba has developed a rechargeable lithium-ion battery, the SCiB, that has a new oxide-based material, lithium titanate, that allows quicker charging times. It's used in the Honda Fit's EV and Mitsubishi's i-MiEV.
Huge lithium-ion batteries, filling 53-foot shipping containers, are being used for grid-scale projects. Since September 2011 on a ridge of Laurel Mountain in West Virginia, AES Storage has used them to store 64 megawatts of energy generated by windmills. That capacity, if it ran continuously, would be enough to power nearly 50,000 U.S. households for a year.
Batteries are also taking homes off the grid or providing back-up energy. SolarCity, a California-based solar installer, is piloting a back-up battery for some of its solar projects in California and may extend that option to other states this year. Minnesota-based Juhl Energy's SolarBank system pairs solar panels with batteries. Detroit-based Nextek Power Systems offers a portable off-grid option that combines a solar panel with a battery.
Ontario-based Electrovaya plans to bring to the U.S. market this year a residential system, now being tested in Canada, that would install solar panels and a big-enough lithium-ion battery that homes could go completely off grid. Sankar Das Gupta, the company's CEO, says it would cost less than $10,000 for an average-size home to add such a battery to a solar array.
"There's no one battery technology that is one-size-fits-all," says GE's Maroon. He says each has its own advantages and disadvantages, adding: "The market is big enough for each technology to survive."
American Vanadium says flow batteries that use vanadium last longer and are more powerful than lithium-ion ones, because they absorb and release huge amounts of energy quickly and can do so thousands of times. They can be used for grid-scale projects, and smaller lithium-vanadium batteries can power vehicles.
Radvak says if his project is approved, it could provide 5% of the world's vanadium supply and help reduce battery costs. The Bureau of Land Management, which is examining the project and will hold a public meeting Tuesday in Eureka, says the mine could cause a loss of habitat for greater sage grouse and of acreage for livestock grazing.
"There is no mining operation that doesn't have a consequence," Radvak says. But he says the Eureka mine won't involve moving lots of earth, because the vanadium is in surface deposits and can be simply leached with a sulfuric acid. "It's a very low-risk project," he says.
Radvak says while the U.S. has lagged behind other countries, notably Germany, on energy storage, he expects that in the long run, it will become the world's leader.
GLOSSARY OF COMMON BATTERIES:
Batteries often work the same basic way even if they use different metals. They're mini power plants that produce electricity by creating chemical reactions. As atoms move between two plates of different metals, via a chemical solution called an electrolyte, they produce voltage that is discharged through a metal wire on the other side.
• Lead-acid: (auto ignition). They have atoms pass from a plate of metallic lead through sulfuric acid to a plate of solid lead oxide.
• Lithium-ion (personal electronics, electric vehicles). They have carbon on one end and a metal oxide on the other, using lithium salt in an organic compound as the electrolyte in the middle.
• Lithium-air (still in development; possible uses include electric vehicles). They use lithium metal and oxygen as inputs at the two ends.
• Nickel-cadmium (portable electronics, electric vehicles). Their metal plates are nickel oxide hydroxide and cadmium.
• Sodium-sulfur (electric vehicles, grid-scale storage). A type of molten-salt battery, it's made from liquid sodium and sulfur.
• Vanadium redox flow (grid-scale storage). They use vanadium, a metal named for Vanadis — the Scandinavian goddess of beauty and youth — in different oxidation states to store chemical energy for repeated use.
Fracking critics protest Michigan's oil, gas exploration lease auction
Story Appeared on The Detroit News
Lansing — The state Department of Natural Resources leased $1.4 million for oil and natural gas exploration on 36,970 acres of public land Thursday while hydraulic fracturing opponents protested.
Although exploration firms bought five-year leases on more than 98 percent of the land available at auction, 11 acres south of Rochester in Oakland County didn't attract any bids. Lease rates averaged $36.66 per acre, DNR spokesman Ed Golder said.
Opponents of hydraulic fracturing gathered outside a meeting room where the auction was held in the Lansing Center.
"We believe hydraulic fracturing should be banned and stopped in Michigan," said Charlevoix resident Ellis Boal, an attorney involved in a petition-circulation drive that aims to bring the oil and gas extraction method, also known as "fracking," to a state-wide vote in 2014.
Security was heavy. DNR and Lansing Police officers were almost as numerous as the 40 or so protesters who came from around the state.
Officers were checking bags and brief cases carried by those showing up to bid on parcels mostly concentrated in northern Lower Peninsula counties.
Golder said there were seven arrests when the DNR held its last oil and gas lease auction in October — after demonstrators became disruptive and entered the bidding room. There were no arrests Thursday.
The 37,652 acres up for bid Thursday was down from the average of about 100,000 acres. Revenue from the leases is earmarked for public land purchases and recreational area improvements.
Such auctions have been held since 1929 and hydraulic fracturing has been used for 50 years in Michigan with few problems. But concern has heightened because of controversies in other states about techniques such as horizontal drilling.
The fracking technique uses a water/chemical mixture pumped under high pressure to fracture shale rock formations and unleash oil or natural gas that can be pumped back to the surface.
Gov. Rick Snyder wants more exploration of Michigan's natural gas deposits to decrease dependence on coal from other states for energy generation.
But demonstrator Kurt Gleichman of Saline argued the state is selling the five-year leases at bargain prices and creating more reliance on fossil fuels that exacerbate climate change.
Exploration firms nominate the parcels, which then must be cleared by the DNR and Department of Environmental Quality.
Lansing — The state Department of Natural Resources leased $1.4 million for oil and natural gas exploration on 36,970 acres of public land Thursday while hydraulic fracturing opponents protested.
Although exploration firms bought five-year leases on more than 98 percent of the land available at auction, 11 acres south of Rochester in Oakland County didn't attract any bids. Lease rates averaged $36.66 per acre, DNR spokesman Ed Golder said.
Opponents of hydraulic fracturing gathered outside a meeting room where the auction was held in the Lansing Center.
"We believe hydraulic fracturing should be banned and stopped in Michigan," said Charlevoix resident Ellis Boal, an attorney involved in a petition-circulation drive that aims to bring the oil and gas extraction method, also known as "fracking," to a state-wide vote in 2014.
Security was heavy. DNR and Lansing Police officers were almost as numerous as the 40 or so protesters who came from around the state.
Officers were checking bags and brief cases carried by those showing up to bid on parcels mostly concentrated in northern Lower Peninsula counties.
Golder said there were seven arrests when the DNR held its last oil and gas lease auction in October — after demonstrators became disruptive and entered the bidding room. There were no arrests Thursday.
The 37,652 acres up for bid Thursday was down from the average of about 100,000 acres. Revenue from the leases is earmarked for public land purchases and recreational area improvements.
Such auctions have been held since 1929 and hydraulic fracturing has been used for 50 years in Michigan with few problems. But concern has heightened because of controversies in other states about techniques such as horizontal drilling.
The fracking technique uses a water/chemical mixture pumped under high pressure to fracture shale rock formations and unleash oil or natural gas that can be pumped back to the surface.
Gov. Rick Snyder wants more exploration of Michigan's natural gas deposits to decrease dependence on coal from other states for energy generation.
But demonstrator Kurt Gleichman of Saline argued the state is selling the five-year leases at bargain prices and creating more reliance on fossil fuels that exacerbate climate change.
Exploration firms nominate the parcels, which then must be cleared by the DNR and Department of Environmental Quality.
Wednesday, May 29, 2013
Agroterrorism - The New Threat To Food Security
Story originally appeared on Lloyd's.
Food security is increasingly becoming an oxymoron in many parts of the world. From last year’s droughts which decimated US crops to the recent European horsemeat scandal, the ability to produce enough food for the world is once again under the spotlight.
While climate change, commodity speculation and the rise in meat and dairy consumption regularly grab the headlines, our new report highlights agroterrorism as a rising threat to food security – in addition to these better-known risks.
‘Feast or Famine: business and insurance implications of food safety and security’ looks at issues as diverse as globalisation, water security and land availability, and suggests the food sector is increasingly vulnerable to attack.
There is already a well-documented history of such attacks. In 1952, Kenya’s Mau Mau used the African milk bush to poison cattle. In 1978, the Arab Revolutionary Council poisoned Israeli orange crops with mercury, leading to a decline in orange exports. In 1997, Israeli settlers used pesticides to destroy 17,000 metric tonnes of Palestinian grapevines. Even more recently, US security officials have warned that al Qaeda have undertaken research into poisoning public buffet bars with lethal toxins such as ricin and cyanide.
Because food chains have so many points of vulnerability, potential threats to them can include anything from the sabotage of open field crops and water pipes to deliberate contamination or destruction of food reserves.
Given that the geo-political and ideological issues which generate these threats are usually beyond the immediate control of the food sector, managing the risk requires a thorough analysis of each part of the food supply chain. It’s here that the expertise of specialist risk managers and anti-terrorism experts, such as those who advise hotel chains in areas of high political risk, can pay dividends.
Depending on the degree of risk and the relative impact an attack would have, food business can take a number of steps. They may decide to replace ‘just in time’ stock levels with more substantial ‘just in case’ models, retrofit their warehousing and factories for added security, increase food safety testing or front load the value of their business interruption cover.
The longer a supply chain becomes, the more vulnerable it will be to damage to its weakest link. By pinning down these points of vulnerability, and taking expert steps to strengthen them, commercial food producers can do much to protect both their businesses and their consumers from the agroterrorist threat.
“Food security is a huge issue for businesses, governments and society. As populations grow and climate change and competition for land use are taken into consideration, the problem of securing future food supplies is only going to get worse” says Neil Smith, Lloyd’s Emerging Risks & Research Manager.
He continues, “Insurance is likely to play a key role in mitigating some of the risks relating to food security, including agroterrorism.”
Food security is increasingly becoming an oxymoron in many parts of the world. From last year’s droughts which decimated US crops to the recent European horsemeat scandal, the ability to produce enough food for the world is once again under the spotlight.
While climate change, commodity speculation and the rise in meat and dairy consumption regularly grab the headlines, our new report highlights agroterrorism as a rising threat to food security – in addition to these better-known risks.
‘Feast or Famine: business and insurance implications of food safety and security’ looks at issues as diverse as globalisation, water security and land availability, and suggests the food sector is increasingly vulnerable to attack.
There is already a well-documented history of such attacks. In 1952, Kenya’s Mau Mau used the African milk bush to poison cattle. In 1978, the Arab Revolutionary Council poisoned Israeli orange crops with mercury, leading to a decline in orange exports. In 1997, Israeli settlers used pesticides to destroy 17,000 metric tonnes of Palestinian grapevines. Even more recently, US security officials have warned that al Qaeda have undertaken research into poisoning public buffet bars with lethal toxins such as ricin and cyanide.
Because food chains have so many points of vulnerability, potential threats to them can include anything from the sabotage of open field crops and water pipes to deliberate contamination or destruction of food reserves.
Given that the geo-political and ideological issues which generate these threats are usually beyond the immediate control of the food sector, managing the risk requires a thorough analysis of each part of the food supply chain. It’s here that the expertise of specialist risk managers and anti-terrorism experts, such as those who advise hotel chains in areas of high political risk, can pay dividends.
Depending on the degree of risk and the relative impact an attack would have, food business can take a number of steps. They may decide to replace ‘just in time’ stock levels with more substantial ‘just in case’ models, retrofit their warehousing and factories for added security, increase food safety testing or front load the value of their business interruption cover.
The longer a supply chain becomes, the more vulnerable it will be to damage to its weakest link. By pinning down these points of vulnerability, and taking expert steps to strengthen them, commercial food producers can do much to protect both their businesses and their consumers from the agroterrorist threat.
“Food security is a huge issue for businesses, governments and society. As populations grow and climate change and competition for land use are taken into consideration, the problem of securing future food supplies is only going to get worse” says Neil Smith, Lloyd’s Emerging Risks & Research Manager.
He continues, “Insurance is likely to play a key role in mitigating some of the risks relating to food security, including agroterrorism.”
Wednesday, May 1, 2013
Detroit's response to refinery explosion questioned
Story originally appeared on Freep.
The Marathon Petroleum refinery explosion rocked Jacqueline Wright's Detroit home Saturday, less than a mile away. Black smoke was pouring from the tank next to Fort Street. She and her friends wondered what to do.
On the Melvindale side of I-75, the city gave word to evacuate. On the Detroit side, nothing.
"We all were nervous because we didn't know what was going on," said Wright, 46, who has lived on Patricia with her mother, father, sister and, now, her 3-year-old son, her whole life.
"We were trying to watch the news to see what they said. But nobody came around and said to evacuate. I heard in Melvindale some of them evacuated. But that was it. They didn't tell us to evacuate."
On the Melvindale side, Keisa Carter, 35, who's lived on Fairlane for 3 1/2 years, left with her 9- and 10-year-old daughters after getting the order to evacuate.
"Probably like an hour later, police came up and down the street with masks on, knocking on doors, telling them we had to evacuate and go to the ice arena," she said. "Did we evacuate in time, though? You don't know. Spooky."
Emergency officials say air quality testing showed local residents were safe from breathing toxic fumes from Saturday's explosion and fire. But the incident led the refinery's Detroit neighbors and some local officials questioning the differing response by the two cities.
Officials from the Michigan Department of Environmental Quality's Air Quality Division in the Detroit office; the U.S. Environmental Protection Agency's Grosse Ile office, which responded to the scene; a Marathon spokesman and local hazmat officials say air quality monitors did not show dangerous levels of pollution from the refinery.
"Right near the tank there were some low-level air monitoring readings for contamination, as you would expect," Jeff Kimble, the EPA's on-scene coordinator said today, adding that the Downriver Emergency Response Team also took readings north and south of the explosion site. "There were no levels ... that were causing concerns."
Marathon spokesman Shane Pochard said that company employees, after the explosion, watched permanent air quality monitors and also went out into the neighborhoods surrounding the refinery with portable air monitors, testing for dangerous emissions.
"We've been doing both of those since the incident on a consistent basis," Pochard said. "We got no readings or detections anywhere."
Detroit Fire Commissioner Donald Austin, after being questioned today by Detroit City Council public health and safety commission members about the city's response, said that Melvindale "pulled the trigger too soon" on calling for an evacuation.
"As we got more into the incident and we started understanding exactly what the product was that was burning, we realized we didn't have a need for an evacuation," Austin said after the meeting. Had the Marathon explosion required an evacuation of Detroit residents, Austin said, public safety officials would've reacted quickly.
Pamela Shivers of Detroit's Homeland Security & Emergency Management office said today that wind direction Saturday played a part in where evacuations took place. She said residents should register with Nixle.com and monitor local news media for information on incidents like the refinery explosion.
"Detroit residents were not notified because there was never a decision to evacuate," she added in an e-mail response to inquiries.
The city of Detroit on Tuesday -- after inquires by local media -- put a document titled "City of Detroit Evacuation Plan" on the city's website. According to the plan, members of the Detroit Fire Department are one of the critical groups -- along with an incident public information officer -- responsible for notifying residents of an evacuation order.
Michigan Representative Rashida Tlaib said residents in her 6th District were calling her for help Saturday, leading her to question city officials about the response.
"I sent all of them an e-mail expressing great concern that residents were so afraid and it was just chaos, people calling me, asking if they're supposed to evacuate, asking what to do," said Tlaib. . "There seems to be a lack of communication with residents."
Detroit City Councilwoman Brenda Jones, who sits on the public health and safety committee, said the Marathon explosion showed the city needs to do a better job of informing residents in an emergency.
"When you have a situation that occurs such as what occurred on Saturday, the residents should be communicated to even if they don't need to evacuate," Jones said. "They need to know what's going on. They need to know there is no need for them to evacuate as opposed to silence."
That would be a welcome change for Wright and her family, she said.
"I hope that this stuff stops happening because it is kind of scary," Wright said. "And if it does, at least come let us know, let people know what's going on. Send somebody out or get it on the news, so everybody will know what's going on so we won't be scared or whatever."
Thursday, April 25, 2013
Tracking bird flu: US wildlife workers on the front line against deadly strains
Story originally appeared on NBC News.
They were once featured on the show “Dirty Jobs” but the wildlife experts who spend weeks each year wrestling wild birds to swab their behinds for avian flu don’t mind. They’re happy to be on the front line, keeping an eye out for infected birds that might bring new and deadly strains of influenza to the United States.
The program’s been dialed back a bit since it started in 2005, but the U.S. Geological Survey and Fish and Wildlife Service experts are paying close attention to reports of a new and deadly strain of bird flu – the H7N9 virus. It’s infected 102 people in China at last count, and killed 20 of them.
No one is sure where, exactly, it’s coming from. Domestic chickens don’t seem to be a source, nor do pigs, and the virus has been traced to pigeons and finches. It doesn’t seem to be spreading from person to person easily.
“Right now the situation in China seems to be more of a public health situation than a wildlife situation,” says Hon Ip, who has been working on the avian surveillance program since it started up in 2005.
“We are going to see whether it really is going to be extensively in wildlife before we ramp up our surveillance in this country.”
The bird surveillance program started as concern grew over H5N1 – the other bird flu virus – which has spread to 15 countries since 2003, infecting more than 600 people and killing about 60 percent of them.
Ip and his colleagues showed the H5N1 virus was definitely spread by migrating birds, but they’ve also shown, so far, that the highly pathogenic type has not yet come to the U.S.
Just about every other type of bird flu has, however. Birds can carry dozens of different varieties of influenza, and some make them sick, while others don’t. There’s highly pathogenic influenza – high-path for short – that can sweep through a flock of chickens in days. Other types don’t seem to cause so much as a sniffle in birds.
And different species are infected differently. Dometic ducks don’t seem to be bothered by H5N1, but they can give it to chickens which, in turn, can sometimes infect people.
The best way to check is to test the birds. This is where “Dirty Jobs” comes in. People are tested for flu with a nasal swab. You can test birds this way, too, but they also spread flu in their feces. So they need a swab of the cloaca – the all-purpose opening that birds have on the back end.
“Yes, it’s a dirty job,” Ip says, laughing. The Discovery Channel show featured the USGS and Fish and Wildlife Service project during season 3 in 2007.
The team has tested more than 450,000 migratory birds from 284 different species in all 50 states. Now they focus on Alaska, Maine and Iceland. The USGS National Wildlife Health Center also tests sick and dead migratory birds, especially ducks, geese and swans.
“We are working a lot smarter. We kind of know which locations are better,” Ip says. Waterfowl were especially likely to carry H5N1. But H7N9 looks different.
Genetic tests suggested one ancestral carrier was a finch, and other tests suggested pigeons might carry it. “Should it ever be in wild birds, there is a possibility it may be in species other than waterfowl. We need to know that,” Ip says.
The finch species is found across the northern hemisphere, in Asia, Europe and North American. “It is called a brambling,” Ip says. “There are some bramblings that come straight into Alaska and into the lower 48. These little birds are just amazing. They are so small and yet able to migrate these incredible distances.”
The little orange and gray birds have not been shown yet to carry H7N9. Instead, genetic tests showed they may have carried some of the genes that mixed with genes from other bird flu viruses to create H7N9. Flu viruses do this kind of thing all the time – an animal can be infected with more than one type of flu strain at once, and the viruses meet up and swap genetic material.
That is what happened with the 2009 pandemic of H1N1 swine flu. The new virus was an indirect descendant of the 1918 “Spanish Flu” that killed upwards of 50 million people. Over the decades, it picked up genes from various types of bird and pig influenzas.
“It was a virus that ultimately came from birds but it evolved in swine before it became a human pandemic virus,” Ip says. “Maybe new mammalian viruses can arise when mammals are directly infected by birds.”
So far, neither H5N1 nor H7N9 seems to have developed the ability to pass easily from one person to another. If one or the other does, however, experts worry. “Whenever a new type of influenza virus infects humans it is a cause for concern,” says Jim Pipas, a virologist at the University of Pittsburgh. “First, because H7N9 is so different from influenza viruses currently circulating in the human population, humans are likely to lack an effective immune response to the virus. … This is why it is so important to maintain surveillance and to be ready to produce a vaccine if necessary.”
Lufkin Vaults Simmons Into Top 10 Advising on Energy M&A
Story originally appeared on Bloomberg.
Simmons & Co., the Houston advisory boutique founded in 1974, has slipped into the spotlight with roles on two of the biggest oil and industrial deals this year.
The firm advised Texas oil pump maker Lufkin Industries Inc. (LUFK) on its $3.3 billion sale to General Electric Co., announced yesterday. Simmons, alongside UBS AG, advised private-equity firm KKR & Co. on its $3.7 billion offer last month for industrial-equipment maker Gardner Denver Inc. (GDI)
The Lufkin deal helped Simmons crack the top 10 in advising on energy mergers & acquisitions this year, compared with 30th in 2012, according to data compiled by Bloomberg. That and the Gardner Denver transaction are Simmons’s largest since 2007, when the firm won a role on Transocean Ltd.’s $17 billion purchase of GlobalSantaFe Corp., data show.
Simmons, run by Chief Executive Officer Mike Frazier, has now worked on more than $7 billion in deals this year, eclipsing 2012’s more than $5 billion. The firm, which specializes in oil and gas services transactions, was founded almost 40 years ago by Matthew Simmons, a well-known advocate of the “peak oil” theory that posits the earth is running out of the fuel. He died at 67 in an accidental drowning in 2010.
CEO Frazier declined to comment on this article through Libby Covington, a spokeswoman for Simmons.
Evercore Partners Inc., another boutique advisory firm, currently holds the top spot in advising on energy M&A this year with $11.8 billion in transactions, bolstered by the $2.4 billion takeover of Berry Petroleum Co. by Linn Energy LLC, according to data compiled by Bloomberg. The biggest deal so far this year in the energy sector is Royal Dutch Shell Plc’s agreement in February to buy liquefied natural gas assets from Repsol SA for $4.4 billion.
Historical M&A
The strongest year for energy M&A was 2011, led by Kinder Morgan Inc.’s October agreement to buy El Paso Corp. for $21.1 billion. There have been more than $60 billion in global energy deals so far this year, a more than 20 percent decline from the same period a year earlier, data compiled by Bloomberg show. In the industrial sector, there have been more than $90 billion in transactions in 2013.
Global M&A stumbled last quarter as transactions slowed in March, data compiled by Bloomberg showed. Deals shrank to $485.5 billion, a 32 percent decline from the year-earlier period, as the proposed takeovers of icons such as Dell Inc. and H.J. Heinz Co. failed to spark a rally.
Wednesday, April 24, 2013
BP may delay $10 billion Mad Dog oil scheme in Gulf of Mexico
Story originally appeared on Fox News.
BP is reviewing its biggest new oil project in the Gulf of Mexico, due to rising development costs across the industry, and could delay the $10 billion scheme.
British oil major BP said on Friday that rising costs made the current plan, under which construction would start this year, difficult to justify, becoming the latest company to reconsider the economics of a major project.
"The current development plan for Mad Dog Phase 2 is not as attractive as previously modeled, due largely to market conditions and industry inflation," it said in a statement.
The company wants to get its core Gulf of Mexico business, which accounts for around a tenth of its global output, back on track after the disastrous 2010 Macondo oil spill, which is still the subject of a court case in New Orleans.
It classes Mad Dog 2 as a "mega project", meaning it requires gross investment of more than $10 billion.
Construction of Mad Dog 2, set to become BP's biggest new oil development in the Gulf for a decade, had been scheduled to start by the end of this year and the company has said oil should start pumping by the end of the decade.
"BP fully intends to develop the resources at Mad Dog Phase 2 and is committed to moving forward with the right plan," it said. "It is too early to speculate when the details of the final plan will be approved by BP and its co-owners."
Elsewhere in the industry, cost over-runs prompted Woodside Petroleum to consider a different plan for its $45 billion Browse liquefied natural gas project in Western Australia in April.
France's Total said in March it was abandoning a multibillion-dollar oil sands project in Canada.
BP, in cooperation with co-owners Union Oil Company of California, a wholly owned subsidiary of Chevron Corp., and BHP Billiton Petroleum, is now evaluating how to develop the second phase of Mad Dog.Construction of Mad Dog 2, set to become BP's biggest new oil development in the Gulf for a decade, had been scheduled to start by the end of this year and the company has said oil should start pumping by the end of the decade.
"BP fully intends to develop the resources at Mad Dog Phase 2 and is committed to moving forward with the right plan," it said. "It is too early to speculate when the details of the final plan will be approved by BP and its co-owners."
Elsewhere in the industry, cost over-runs prompted Woodside Petroleum to consider a different plan for its $45 billion Browse liquefied natural gas project in Western Australia in April.
France's Total said in March it was abandoning a multibillion-dollar oil sands project in Canada.
BP, in cooperation with co-owners Union Oil Company of California, a wholly owned subsidiary of Chevron Corp., and BHP Billiton Petroleum, is now evaluating how to develop the second phase of Mad Dog.
"I see it as a delay. I think it'll probably push back the final investment decision by, I would estimate, about 12 months," Macquarie analyst Jason Gammel said.
A tumble in the oil price, which is down nearly $10 a barrel since the start of this month, could also be weighing on BP's plans for the deep-water field.
The oilfield could contain up to 4 billion barrels of oil equivalent (boe). Mad Dog 2 involves building a second platform on the field and 33 subsea wells to exploit new discoveries.
Shares in BP traded up 1.1 percent, outperforming the European oil and gas index which was 0.4 percent higher.
Thursday, April 18, 2013
Up to 15 dead in Texas fertilizer plant blast, scores hurt, police estimate
Story originally appeared on CBS News.
WASHINGTON Rescue workers searched rubble that witnesses compared to a war zone early Thursday for survivors of a fertilizer plant explosion in a small Texas town that killed as many as 15 people and injured more than 160 others. The blast left the factory a smoldering ruin and leveled homes and businesses for blocks in every direction.
The explosion in downtown West, about 20 miles north of Waco, shook the ground with the strength of a small earthquake and could be heard dozens of miles away. It sent flames shooting into the night sky and rained burning embers, shrapnel and debris down on shocked and frightened residents.
Texas resident describes blast "They are still getting injured folks out and they are evacuating people from their homes," Waco police Sgt. William Patrick Swanton said early Thursday morning. He added later, "At some point this will turn into a recovery operation, but at this point, we are still in search and rescue."
Swanton said authorities believe that between five and 15 people were killed in the blast, but stressed that is an early estimate. There is no indication the blast was anything other than an industrial accident, he said, adding that the extent of the devastation won't be known until later in the morning.
Swanton said the area would be treated as a crime scene after the search and rescue effort finished, as investigators seek to learn what caused the explosion. He said no evidence of criminal activity has been found so far.
CBS News has learned President Obama was briefed on the situation Wednesday night, and the White House is monitoring developments through the Federal Emergency Management Agency -- FEMA -- the lead federal agency coordinating with state and local officials who are responding. No specific request for federal assistance had been made by local officials.
KTVT aired video of the explosion itself:
Among those believe to be dead -- members of a group of volunteer firefighters and a single law enforcement officer who responded to a fire call at the West Fertilizer Co. shortly before the blast. They remained unaccounted for early Thursday morning.
Swanton said he had no details on the number of people who work at the plant, which was cited by the Texas Commission on Environmental Quality in 2006 for failing to obtain or to qualify for a permit. The agency acted after receiving a complaint in June of that year of a strong ammonia smell.
Homes and vehicles shredded by West, Texas fertilizer plant explosion 9 Photos Texas fertilizer plant explosion View the Full Gallery » The explosion that struck around 8 p.m. leveled a four-block area around the plant that a member of the city council, Al Vanek, said was "totally decimated." The toll included 50 to 75 houses, an apartment complex with about 50 units that one state police officer said was reduced to "a skeleton," a middle school, and the West Rest Haven Nursing Home, from which first-responders evacuated 133 patients, some in wheelchairs.
Other witnesses compared the scene to something from the Iraq War or the 1995 Oklahoma City bombing, and authorities said the plant made materials similar to that used to fuel the bomb that tore apart that city's Murrah Federal Building.
Although authorities said it will be some time before they know the full extent of the loss of life, they put the number of those injured at more than 160 early Thursday. West Mayor Tommy Muska told reporters that his city of about 2,800 residents needs "your prayers."
"We've got a lot of people who are hurt, and there's a lot of people, I'm sure, who aren't gonna be here tomorrow," Muska said. "We're gonna search for everybody. We're gonna make sure everybody's accounted for. That's the most important thing right now."
In the hours after the blast, many of the town's residents wandered the dark and windy streets searching for shelter. Among them was Julie Zahirniako, who said she and her son, Anthony, had been playing at a school playground near the fertilizer plant when the explosion hit. She was walking the track, he was kicking a football.
The explosion threw her son four feet in the air, breaking his ribs. She said she saw people running from the nursing home and the roof of the school lifted into the air.
"The fire was so high," she said. "It was just as loud as it could be. The ground and everything was shaking."
The town's volunteer firefighters had responded to a call at the plant at 7:29 p.m., Swanton said. Due to the plant's chemical stockpile, "they realized the seriousness of what they had," he said.
Muska was among the firefighters, and he and his colleagues were working to evacuate the area around the plant when the blast followed about 20 minutes later. Muska said it knocked off his fire helmet and blew out the doors and windows of his nearby home.
Eyewitnesses describe situation near massive explosion in West, Texas. The main fire was under control as of 11 p.m., authorities said, but residents were urged to remain indoors because of the threat of new explosions or leaks of ammonia from the plant's ruins. Swanton said early Thursday authorities were not concerned about lingering smoke from the fire.
Dozens of emergency vehicles amassed at the scene in the hours after the blast, as fires continued to smolder in the ruins of the plant and in several surrounding buildings. Aerial footage showed injured people being treated on the flood-lit football field that had been turned into a staging area.
Vanek said first-responders treated victims at about half a dozen sites, and he saw several injured residents from the nursing home being treated at the community center. Swanton said the injured rescued so far had been taken to hospitals in Waco and a triage center at high school in nearby Abbott.
About 100 of the injured were treated at Hillcrest Baptist Medical Center in Waco, where five people were in intensive care. Another 65 were taken to Providence Health Center in Waco. Officials said the injuries included broken bones, bruises, lacerations, respiratory distress, and some head injuries and minor burns.
Officer on "tornadic effect" of explosion, fatalities Erick Perez, 21, of West, was playing basketball at a nearby school when the fire started. He and his friends thought nothing of it at first, but about a half-hour later, the smoke changed color. The blast threw him, his nephew and others to the ground and showered the area with hot embers, shrapnel and debris.
"The explosion was like nothing I've ever seen before," Perez said. "This town is hurt really bad."
Information was hard to come by in the hours after the blast, and entry into the town was slow-going as the roads were jammed with emergency vehicles rushing in to help. A spokeswoman for Texas Gov. Rick Perry said the state sent personnel from several agencies to help, including the Texas Commission for Environmental Quality, the state's emergency management department and an incident management team. Also responding is the state's top urban search and rescue team, the state health department and mobile medical units.
The U.S. Chemical Safety Board said it was deploying a large investigation team to West. American Red Cross crews from across Texas also headed to the scene. Red Cross spokeswoman Anita Foster said the group was working with emergency management officials in West to find a safe shelter for residents displaced from their homes.
In 2001, an explosion at a chemical and fertilizer plant killed 31 people and injured more than 2,000 in Toulouse, France. The blast occurred in a hangar containing 300 tons of ammonium nitrate, which can be used for both fertilizer and explosives. The explosion came 10 days after the Sept. 11, 2001, terrorist attacks in the U.S., and raised fears at the time it was linked. A 2006 report blamed the blast on negligence.
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