UK shale plans target cheap gas

The land here in Lancashire's Fylde region was on the sea bed in the age of the dinosaurs. That was when the gas was formed, as fragments of organic matter ran off the hills, became squashed amidst grains of clay, and decayed. But the heavily-compressed shale rock trapped the gas molecules so tight that they can't escape into a conventional gas bore.

Now a controversial technique called fracking (fracturing) allows that gas to be extracted, by setting off small controlled explosions more than a mile below ground then pumping in water and lubricant chemicals to set the gas free.
Environmentalists want a delay in fracking until a major review of the practice by the US Environmental Protection Agency has been carried out - maybe sometime next year. The government believes its own safety regulations are strict enough.

So far, the Department for Energy and Climate Change (DECC) appears to be cautiously welcoming the advent of shale gas in the UK. Shale's not anticipated to supply a large proportion of Britain's gas needs, but it is contributing to a worldwide flow of gas that has halved gas prices in the US domestic market, and led to a glut in world markets.

At the moment, gas producers are succeeding in pegging global gas prices to oil prices but some analysts say this will have to change if gas remains in such plentiful supply compared with demand.



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Smart meters save just £23

So-called smart meters, digital devices which will be installed in all households and businesses, are designed to end unreliable estimated gas and electricity bills and stop the need for companies to send out meter inspectors. Instead, information about how much energy consumers have used will be sent electronically to their suppliers.

However, documents published by the Department for Energy and Climate Change (Decc) have confirmed that households will have to pay for the £11.3 billion roll out, and that they will only save £23 a year by 2020.

That saving equates to just 2 per cent of the current average household energy bill of £1,132 and does not take into account forecasts that gas and electricity bills will climb substantially over the next decade. Ofgem, the industry regulator, has predicted that bills are likely to rise by between £168 and £700 a year by 2016 because of the need by the energy companies to invest vast sums in new power stations.
Various green measures are likely to increase household bills even further. Tom Lyon, energy expert at uSwitch.com, the price comparison site, said:“The average household energy bill is already £1,132 a year with £84 of that made up by hidden taxes. Policies launched under the previous Government are expected to add a further 6 per cent or £72 in levies over the next decade – this means that the hidden taxes on our energy bills will add up to £156 a year, far outweighing the potential £23 net saving offered through smart metering.”

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Warm front contract extension for Eaga

Energy efficiency firm Eaga has negotiated an extension of its contract with the Department of Energy and Climate Change to deliver the department’s Warm Front Scheme across England.

The scheme will now run to 31 March 2013 on commercial terms in line with previous expectations.

Total funding allocated to the Warm Front scheme across the period to March 2013 is in the region of £210m.

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Safe nuclear does exist

This passed unnoticed –except by a small of band of thorium enthusiasts – but it may mark the passage of strategic leadership in energy policy from an inert and status-quo West to a rising technological power willing to break the mould.

If China’s dash for thorium power succeeds, it will vastly alter the global energy landscape and may avert a calamitous conflict over resources as Asia’s industrial revolutions clash head-on with the West’s entrenched consumption.

China’s Academy of Sciences said it had chosen a “thorium-based molten salt reactor system”. The liquid fuel idea was pioneered by US physicists at Oak Ridge National Lab in the 1960s, but the US has long since dropped the ball. Further evidence of Barack `Obama’s “Sputnik moment”, you could say.

Chinese scientists claim that hazardous waste will be a thousand times less than with uranium. The system is inherently less prone to disaster.

“The reactor has an amazing safety feature,” said Kirk Sorensen, a former NASA engineer at Teledyne Brown and a thorium expert.
“If it begins to overheat, a little plug melts and the salts drain into a pan. There is no need for computers, or the sort of electrical pumps that were crippled by the tsunami. The reactor saves itself,” he said.

“They operate at atmospheric pressure so you don’t have the sort of hydrogen explosions we’ve seen in Japan. One of these reactors would have come through the tsunami just fine. There would have been no radiation release.”

Thorium is a silvery metal named after the Norse god of thunder. The metal has its own “issues” but no thorium reactor could easily spin out of control in the manner of Three Mile Island, Chernobyl, or now Fukushima.

Professor Robert Cywinksi from Huddersfield University said thorium must be bombarded with neutrons to drive the fission process. “There is no chain reaction. Fission dies the moment you switch off the photon beam. There are not enough neutrons for it continue of its own accord,” he said.
Dr Cywinski, who anchors a UK-wide thorium team, said the residual heat left behind in a crisis would be “orders of magnitude less” than in a uranium reactor.

The earth’s crust holds 80 years of uranium at expected usage rates, he said. Thorium is as common as lead. America has buried tons as a by-product of rare earth metals mining. Norway has so much that Oslo is planning a post-oil era where thorium might drive the country’s next great phase of wealth. Even Britain has seams in Wales and in the granite cliffs of Cornwall. Almost all the mineral is usable as fuel, compared to 0.7pc of uranium. There is enough to power civilization for thousands of years.
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