Divestment fever spreads to Canada as students, doctors launch campaign against fossil-fuel holdings

FossilFreeCanadaLogoCalls in the United States for universities to divest their fossil-fuel holdings are starting to spread into Canada, where students and doctors are beginning to speak out.

Students from across the country are taking part Wednesday in what’s being called Fossil Fools Day, described as the first national day of action for the Fossil Free Canada campaign, an initiative being led by the Canadian Youth Climate Coalition.

More than a dozen Canadian university campuses are planning marches and rallies in an effort to urge their university administrations to divest their endowments from fossil fuel and pipeline companies. Many already have active campaigns.

“To date four campuses in the United States have divested, and administrations at McGill University and the University of New Brunswick-Fredericton are reviewing divestment,” according to a statement from the youth coalition.

Environmental activist and journalist Bill McKibben, through his organization 350.org, is leading U.S. efforts. They began last November with McKibben’s 21-city “Do The Math” tour, which spread a simple message: avoiding the worst effects of climate change means leaving most of the world’s proven reserves of fossil fuels in the ground.

McKibben argues that society can’t afford to release more than 565 gigatons of carbon dioxide through the burning of fossil fuels if we are to keep average global temperatures from rising more than 2 degrees C. The problem is that fossil-fuel companies have what amounts to 2,795 gigatons in reserve, and they’re expecting all of it to be burned.

Those surplus reserves are being called “unburnable carbon.” The International Energy Agency estimates that on our current path the total allowable global carbon budget could be exhausted by 2017, assuming the world sticks with the 2 degree C scenario.

The reality is beginning to irk financial giants such as HSBC, which recently warned investors that oil and gas giants such as BP, Royal Dutch Shell and Norway’s Statoil are at risk of losing up to 60 per cent of their market value if the carbon on their balance sheets – carbon that they and their shareholders are expecting to see burned – becomes unburnable and therefore unsellable. The Institute of Actuaries, Mercer and KPMG are among others who have raised red flags.

McKibben’s message is beginning to sink in. The student bodies of more than 300 post-secondary campuses in the United States have joined 350.org’s Go Fossil Free campaign, and so far a handful of small colleges have committed to divesting. Many more are studying it, at the strong urgings of their student bodies. McKibben estimates that universities and colleges in the U.S. hold endowments worth well over $400 million, but beyond that even cities and states are taking notice and feeling the pressure of what can be described now as a global movement.

In Canada, where divestment pressure has been slower to emerge, the Canadian Youth Climate Coalition launched its own McKibben-style campaign in early February. Cameron Fenton, national director of the coalition, said many universities in Canada are doing great work around sustainability, such as making campuses “greener,” but their investments haven’t followed the same path. “Building a sustainable campus that is bankrolling and profiting from climate change is a Pyrrhic victory at best,” Fenton wrote in a recent commentary in the Toronto Star.

A new study from the Ottawa-based Canadian Centre for Policy Alternatives found that Canada’s proven reserves of oil, bitumen, gas and coal are equivalent to 91 gigatons of carbon dioxide, or 18 per cent of the global carbon budget, based on an assessment of 114 fossil fuel companies operating in Canada. Add in probable reserves and the number swells to 174 gigatons, while possible reserves sit at 1,192 gigatons, or more than double the world’s carbon budget.

Assuming conservatively that Canada’s share of the global carbon budget is 20 gigatons, this would imply, according to the study, that 78 per cent of proven reserves and 89 per cent of proven and probable reserves must be left in the ground. “Canada is experiencing a carbon bubble that must be strategically deflated in the move to a clean energy economy,” according to the policy alternatives.

“Because public valuation of companies largely ignores big picture climate realities, there is a systemic risk inherent in the fossil fuel extraction and production industry,” it concluded. “Our analysis finds that Canadian financial markets have failed to consider climate risk. The shock associated with coming global efforts to manage carbon could leave key sectors such as pension funds vulnerable.”

Canadian doctors, meanwhile, are reminding citizens that investments aren’t the only risk. The health of Canadians are being dramatically impacted by the burning of coal and other fossil fuels, and that alone is reason to divest, the Canadian Association of Physicians for the Environment (CAPE) argued on Wednesday. The association pointed to a study it co-released that day from the Pembina Institute on the health impacts of coal-fired electricity generation in Alberta. Coal power’s contribution to asthma and other respiratory/cardiovascular illnesses in the province costs about $300 million annually because of increased visits to hospitals and emergency rooms, the report found.

CAPE put out a statement Tuesday urging all Canadian healthcare providers and their professional associations, including the Canadian Medical Association, to immediately “freeze” all new investment in oil, gas, coal, and pipeline companies. Within five years, they want these organizations to divest from direct ownership and commingled funds that include fossil-fuel public equities and corporate bonds.

“Similar strategies have been used in the past by medical organizations in the fight to hold the tobacco industry accountable for the health effects of its products,” CAPE said in a statement.

Clean Break column in Toronto Star ends a 10-year run…

photoIt was a trip to Iceland in June 2003, just months after the birth of my first daughter, that the immense need for and potential of clean energy first landed on my radar. The Toronto Star agreed to send me there so I could write about Iceland’s efforts to transition to a hydrogen economy. I toured several of the country’s geothermal and hydroelectric facilities. I rode on hydrogen fuel cell buses. I swam in the Blue Lagoon. I spoke with some of the leading academics and engineers in the world working on the hydrogen puzzle. I came back inspired, hungry to learn more — not just about fuel cells and hydrogen, but about this whole emerging area of clean technology, or “cleantech.” It helped that Canadian fuel cell pioneers Ballard Power and Hydrogenics had already captured my interest, but once I looked beyond the “hype about hydrogen” I saw a great diversity of clean technologies at various stages of development. Further boosting my enthusiasm was Nick Parker, founder of the Cleantech Group and the man who coined the term “cleantech.” It was about that time that I first met Nick at a venture capital conference in Toronto. I had covered the technology and telecom scene for five years and was getting bored. The market had tanked. No longer was it interesting to write about faster routers and fatter broadband services. I was more drawn to the optical engineers who left telecom behind and decided to use their skills to boost the potential of solar PV technology and LEDs. Nick and the handful of companies he brought to the venture capital conference only had a small piece of the floor, but they were the most fascinating to cover. I was hooked.

Within just a couple of months after my trip to Iceland, I decided to transition my weekly high-tech column at the Toronto Star into a clean technology column. It began as a bi-weekly effort, but by the following year my transition was complete — Clean Break was a weekly column devoted to cleantech, and a first of its kind in North American for a major daily newspaper. This blog soon followed, one of the first cleantech blogs to hit the blogosphere. Parker’s Cleantech Group recognized this in 2005 by selecting me for the Cleantech Pioneer award. What Nick liked about the Clean Break column is that it was in the business section of the newspaper, which conveyed the idea that most of the technologies I was writing about weren’t destined to be money-losing propositions but were either competitive today or had the potential to be competitive; that tackling climate and other environmental issues through efficiency and using carbon-free technologies was a way to boost productivity and global competitiveness. Readers also liked the emphasis on solutions, as opposed to dwelling on environmental problems. I didn’t see myself as an environmental reporter, at least not of the traditional sort — that is, only investigating and exposing bad apples, and only telling readers how much things sucked. That was just too depressing. I liked highlighting innovation that was going to help get us out of the environmental mess we had created, and even better, help boost revenues and lower costs for companies and governments. I wanted to put less emphasis on environmental compliance (a pure cost) and more emphasis on the embrace of “clean” technologies because it was simply good for business. I thank the Toronto Star for letting me go in this direction, or at least not preventing me from doing so.

Much has changed in the 10 years that have followed. That whole hydrogen thing didn’t turn out as planned. Plug-in vehicles, hardly talked about a decade ago, have taken over and remarkably all of the top auto manufacturers now have pure electric or hybrid-electric models on the market. Sales haven’t been a strong as predicted, but the fact there are tens of thousands of plug-in vehicles on the roads and thousands of high-speed charging stations installed is a dramatic accomplishment in my view. Same goes for solar and wind technologies. Less than 600 megawatts of solar capacity were installed in 2003. That figure has surpassed 30,000 megawatts, meaning the market has grown 50-fold over the past decade, and we’ll see another 10-fold expansion by 2020. Currently there are about 96,000 megawatts of total solar capacity installed worldwide, a figure that’s expected to reach 330,000 megawatts in seven years. In other words, since starting my Clean Break column solar has gone mainstream — a combination of plunging prices and progressive government policies. The wind industry, which had an installed capacity of about 39,000 megawatts in 2003, has grown to have a total capacity that now stands at 283,000 megawatts. These are huge numbers. Last year, an astonishing $269 billion was invested in clean energy infrastructure. In 2010, investments in renewable energy exceeded investments in fossil fuelled power plants for the first time, a major global milestone. Venture capital in cleantech, depending on how you define it, jumped from about $1 billion to over $8 billion from 2005 to 2011 (it’s now around $6 billion). The market for cleantech is, generally speaking, a trillion-dollar global opportunity.

Media coverage of the industry — new and traditional — has also changed. In 2005 my blog was among a handful of blogs consistently covering the cleantech space, and my column was unique in North American, at least for a mainstream daily newspaper. Now, as I wrote in my book Mad Like Tesla, “I am but one small voice in a sea of dedicated news sites, columns, blogs, Facebook pages, and Twitterers all covering different angles of this clean energy revolution and advocating for a faster transition away from fossil fuels. We may complain that the transition is going too slowly — it can never move fast enough — but looking back it’s amazing we have come this far so quickly.” As coverage of the sector increased, my own writings became increasingly regional and local. Most of my Clean Break columns for the past few years have focused on my home province of Ontario or home city of Toronto. I’ve most enjoyed writing about Canadian or Ontario-based clean technology startups or innovators trying to raise the bar on efficiency and lower environmental footprints. My columns have covered LEDs, solar power, wind power, demand-response, green chemistry, smart grid innovation, water technologies, geothermal, biofuels (with a big focus on algae), electric vehicles, carbon capture and storage, nuclear, wave and tidal power, biogas, waste reduction, energy storage, advanced materials… you name it. I have learned so much, met so many wonderful and smart people, made new friends and played my own little part in helping Canadian companies get attention locally and globally. It has been tremendously satisfying.

Why am I writing all of this now? Well, because this July would have been the 10-year anniversary for my Clean Break column in the Toronto Star. Also, just before I went to Costa Rica earlier this month for vacation, I got a call telling me that my column had been cancelled. I can’t say it was entirely unexpected. When I left my full-time staff writing gig at the Star in 2010 to write Mad Like Tesla, the paper’s business editor at the time agreed on a handshake to let me keep writing the column. Three editors have come and gone from the business section since then and during each transition the axe was expected to come. It didn’t, and frankly, I’m amazed I made it this far. It’s been a great run. The fact is, the newspaper industry is going through a painful transition and there’s no indication this is temporary. In fact, the pain indicates something that may be terminal. The Star recently announced it was outsourcing its pagination and copy editing functions to save costs and that 55 jobs would be cut. Sections across the paper have been asked to slash budgets, and the axe falls easily on freelance columns. This is an unfortunate sign of the times. That my column was discontinued is also a sign of the times. Clean energy may be the future and climate change is the biggest threat to our existence, but that didn’t stop the New York Times from recently dismantling its own environmental reporting team and cancelling its popular green blog. This is both the knee-jerk reaction of an industry that’s suffering, and the reason why this industry is suffering — in my humble opinion.

To be fair to the Star, it did recently hire a global environmental reporter and global science and technology reporter. This is great news. Change is good, and people will get fresh coverage and viewpoints. Let’s hope they stay committed to these beats and give the stories that come out of them the priority and placement they deserve. Me, I’m having a blast as editor of Corporate Knights magazine, where I have been for nearly two years, and I hope to spend the next few years building this publication. We’re doing great things and insightful research — not just in cleantech, but around a number of issues where business and sustainability intersect. I encourage all my readers to sign up for Corporate Knights’ digital subscription, which you can get through iTunes by downloading our app in the App Store (We’re also available on Kindle through Amazon.com, and soon coming to the Android marketplace). Besides, I needed a break from the column and had been considering new directions for it for some time. Its Canada/Ontario/Toronto focus was appropriate for a paper like the Toronto Star, but I want to broaden the message and the audience. Over the coming months I will be looking at a national or North American media platform through which to revive the column, in partnership likely with Corporate Knights. In the meantime, I’ll continue to use this blog to highlight new technologies, emerging issues, breaking news, and whatever else tickles my fancy. The Clean Break brand is here to stay.

Finally, if you were a regular reader of my Clean Break column in the Star, thank you very much for tuning in. Many hundreds, possibly thousands, have reached out to me over the years to convey their appreciation or dislike of the column — fortunately it’s been more of the former. Sometimes people just wanted to exchange ideas. I can’t tell you how heart-warming it is to get an e-mail from a teacher who’s using my column as material for the classroom, or a call from a student who wants to interview me for a class project, or getting Tim Horton’s gift certificates in the mail from an anonymous person thanking me for doing what I’m doing, or getting a call from the founder of a startup who got venture capital funding because of an article I wrote, or having a politician tell me that my coverage of an issue had an impact on policy or legislation. Without readers — even the ones who call you an idiot, and there have been many — there’s no point in writing.

Unfortunately, the Toronto Star would not allow me to do a final farewell column to notify my readers that this is the end of the line, for now. Some of you might have noticed it was no longer being published. But most won’t notice, and I expect this will hold true for many of my colleagues still word-tapping at the Star. Columns come and go, and mine is no different. It would have been nice, however, to thank my Star readers more directly, rather than through the more limited audience that this blog attracts.

Offshore wind opportunity grows in the Great Lakes, but not in Ontario

Is the offshore wind opportunity in Ontario permanently dead in the water?

It was in February 2011 – an election year—when the Liberal government abruptly killed the ambitions of any wind developer looking to place wind turbines in the Great Lakes. It booted offshore wind out of the feed-in tariff program and it suspended all applications, citing the need for more scientific research until, in the words of the environment minister, there is assurance “any offshore wind developments are protective of the environment.”

That’s a pretty high standard. Can any energy development really protect the environment?

Never mind that government scientists have been studying the issue since at least 2007, or that when a previous moratorium on offshore wind development was lifted in 2008, then-premier Dalton McGuinty was convinced that such developments could be done in a way that would not compromise ecosystems.

But more studies were needed. Fair enough.

So where are these studies?offshore

As the Star’s John Spears reported last month, three studies were posted on the Ministry of Natural Resources’ website in February – two dealing with impacts on aquatic species and fish habitat, and one a more comprehensive engineering impact study.

Strangely, all three were completed and submitted to the government in spring-summer 2011. It’s not clear why it took 18 months for them to become publicly known, or what has been done since then.

It’s also not clear how many more studies are coming, what kinds of studies are still needed, when they will all be completed, and if, once completed, the ministry has any intention of reconsidering the moratorium.

“We still need to gather more information.” That’s all ministry spokesperson Jolanta Kowalski was prepared to answer when repeatedly asked the questions. The natural resources ministry, she added, “will work with the Ministry of Environment and other agencies to help determine future research and science priorities and activities.”

In other words, there’s no rush. They’re still determining. Still gathering. I can’t remember any other energy source being put through so much study for so long before a single kilowatt was produced, except perhaps the kind that creates highly radioactive waste.

Here’s some perspective: two years ago Ontario was in a strong position to lead the world on freshwater offshore wind development, attract a major turbine manufacturer, establish a compelling local supply chain, and create many thousands of jobs. Today, the government is being sued for billions of dollars for turning its back on this potential, not to mention the investors it originally wooed.

Meanwhile, Ohio has picked up the slack. The non-profit Lake Erie Energy Development Corporation (LEEDco) received $4 million (U.S.) last month from the U.S. Department of Energy that will go toward engineering, design and permitting work for its “Icebreaker” offshore wind project.

Icebreaker will be a five-turbine (possibly nine) offshore wind farm located about 11 kilometres off the shoreline of Cleveland. It will have the potential to generate more than 20 megawatts of electricity, and will be a first-of-its-kind in North America.

Turbine manufacturer Siemens, wind developer Freshwater Wind, Case Western Reserve University and municipal governments in the area are partners in the project. LEEDCo’s goal is to see 1,000 megawatts of offshore wind developed by 2020 within Ohio’s jurisdiction.

That could have been us. Note that Siemens used to have an interest in partnering up in Ontario until we abandoned all talk of offshore wind.

Is it that the studies Ontario has conducted to date suggest the risks to the environment and health are too high to proceed? No. They do highlight some real risks, but they also draw attention to the many benefits and point out ways to minimize the risks.

“If care is taken to properly site project locations, avoid sensitive habitat areas, employ available options or continue to develop new options for mitigation, and conduct appropriate biological monitoring, the potential impacts of offshore wind power production could in fact be minimal,” concludes one of the studies from the natural resources ministry’s own aquatic research group.

The study goes on to talk about the limitations of doing lab and computer-model studies. “We cannot fully understand the environmental impact that a wind power project will have until we are able to study the response of the local system to the construction and operation of an actual installation in the field.”

It suggests that the next step be small-scale pilot projects, at minimum. “Ultimately, however, the greatest and most valuable knowledge would be gained through focused research and monitoring at commercial-scale demonstration projects throughout the construction phase and over the long-term during operation. Looking ahead, collaboration between government, industry and academic partners to plan and initiate this type of project would be highly valuable.”

That’s exactly what the Ohio consortium is doing.

Nobody is saying that Ontario should run out and develop 1,000 megawatts of wind tomorrow. But the current surpluses being experienced in the province’s electricity system won’t last forever. Coal generation will be gone within the year. Aging nuclear reactors will soon enough be taken offline for refurbishment or decommissioning.

The power crunch will come. Offshore wind, responsibly developed and set back far enough from the shore, could be an important part of Ontario’s clean energy mix. If we need more research, maybe it’s time we actually dipped our feet in the water and actually built something we can properly study.

Or we can just look over our neighbour’s shoulder.

Tyler Hamilton, author of Mad Like Tesla, writes weekly about green energy and clean technologies.

Plans for green jet fuel plant in Ontario north flame out

BurningFuelsComparisonNearly two years ago, an LA-based company called Rentech Inc. announced plans to build a biofuels plant four hours north of Sault St. Marie, Ontario. It would use forest waste and “unmerchantable” tree species for making renewable jet fuel and naphtha, a chemical feedstock used to make all sorts of products. That plant was supposed to be operational in 2015. It was supposed to employ up to 1,000 people during peak construction, and keep 83 people directly employed full time in a region of the province that could really use those jobs.

Ain’t gonna happen, it seems.

The company put out a press release last night announcing that it is ceasing operations, reducing staff, and eliminating all R&D related to new technology development. And yes folks, I’m told that would includes its Ontario “Olympiad” project, which was to use a Fischer-Tropsch process to turn biomass into 85 million litres of green fuel annually. It means the deal Rentech signed with the Ontario government that gave it access to up to 1.1 million cubic metres of Crown timber is effectively dead wood. The question is whether those access rights will be transferred to one of the competing projects from local companies that bid against Rentech and lost.

It’s funny (or not so funny) how many grand announcements from government never actually come to fruition. This, in my view, could have been a good project. It’s a shame for the people living in that region. They could have used the economic boost.