Download Global Climate Change Some Policy and Technology Issues

Global Climate Change
Policy Decisions & Technology Issues
A Caribbean Case Study
Presentation to ASME IAB 2007 April 18
Donald Baldeosingh
Chairman, ENMAN Group
Presentation Outline
• Energy based challenges in developing economies of
the Caribbean Basin
• A Practical approach - Hydropower development and
transmission system
• Policy and Technology issues
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Carbon and the Developing World
“If Britain were to completely shut down,
at the rate China is growing, the carbon
emission levels would revert in less than
two years” - Tony Blair
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Caribbean Energy situation
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All islands independent generators
Mostly imported Diesel fuel
Some LNG in Puerto Rico and now in Jamaica
Some Coal and Small Hydro
All islands are relatively high Carbon producers
High cost - Power consumes up to 40% GDP
Unreliable, susceptible to hurricanes
Renewables not easily viable options - Wind,
Solar, Geothermal, Wave, Biofuels
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Some Caribbean Geopolitics
• Several economies in shambles - oil price,
loss of preferential markets, hurricanes and
reduction in tourist arrivals
• Rise in narco traffic
• Chavez’ influence in Caribbean growing
- and of growing concern
• PetroCaribe promotes continued Hydrocarbon
use and increased debt: not sustainable
• Caribbean governments claim neglect by US
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Trinidad & Tobago -
What you may already know
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Tropical Beaches
Carnival
Calypso music
Steel Pan Orchestras
Athletes & Beauty Queens
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Trinidad & Tobago -
What you may not know
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Large reserves of Gas - 3rd in Latin America
100 year history in Oil Production
Home to all the Majors
Topmost producer of Ammonia & Methanol
4th highest producer of LNG and biggest
supplier to US
And the downside:
• Third highest Carbon Producer per capita
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And even worse
Just ten miles from Venezuelan coast
Large cross border reserves of Gas
Country’s proven gas reserves dwindling
Signed treaty with Venezuela for unitization of
shared reserves
• Pursuing policy of heavy industrialization
based on hydrocarbon use (cheap gas)
• Economy overheating, seriously under threat
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US perspectives
• Concern for energy security at “3rd Border”
• Rising drug trans shipment
• US promoting long term solutions e.g.
Biofuels production
• Problem is seen as immediate in islands - mix
of initiatives/interventions may be needed
• More pure AID is clearly not the answer
• Six Congressmen in Trinidad today
• DOE promoting “energy and competitiveness”
solutions
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A Private Sector Solution
• ENMAN Group are developers of a large hydroelectric
power plant in Guyana 1100MW
• And Submarine power transmission system to the
Caribbean islands and overland to Northern Brazil
• Value $2Bn
• Power to Puerto Rico at 8 c/kWh vs 17c paid now
• Clean, reliable, independent of oil price
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Guyana
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English speaking South American country
CARICOM member
Presidential democracy
Size of Britain, Population 700K
HIPC - Highly Indebted Poor Country
Vulnerable to South American narco traffic
Rich in Gold, Diamonds, Bauxite, Forestry
And HYDROPOWER
Guyana has 7000MW Hydropower potential,
enough to power the entire Caribbean
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The Team
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ENMAN Services of Trinidad
Hardy Stevenson & Associates Canadian - Hydro experts
Manitoba Hydro International - Technical support
GE Team Associates - Project Managers
Boundless Energy - HVDC experts
Ernst & Young - Financial
Venable LLP - Legal
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Technology overview
• Hydropower technology tried and proven
• 75,000 MW HVDC transmission capacity installed in 92 projects
around the world
• HVDC ideally suited for long-haul high voltage requirements
• No discharge of air or water emissions
• Monopolar transmission using ground as return path
• Lower Line Loss than AC
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Status
• Interim Licence with Guyana and fullest support
• Concluded Prefeasibility study - very positive
• Markets identified up to Puerto Rico and US Virgin
Islands to the North, and Brazil in the South
• Looking at combined Wind/Hydro in Guyana
• And Gas generation in Trinidad
• Institute for sustainable hydropower development
• Forestry Concession included
• Business Plan completed
• Carbon Credits identified
• Bathymetric Study done
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Next Steps
Full Feasibility assessment
Engineering Design
Financing Plan and Prospectus
Power Purchase Agreements
Subsea Cable Route Surveys and Permits
Training – Guyana Institute for Sustainable
Hydroelectric Development
• Build Project
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Policy & Technology Challenges
• Major leap of faith for individual country islands to
agree to import electricity
• Lack capacity to develop/assess solutions
• Looking for immediate solutions
• Negotiations with many parties necessary
• Labour issues
• Trinidad focused on new gas consuming plants and
on maintaining energy influence in the Caribbean
• Significant engineering effort needed
• Funding for the above
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Conclusion
• Policy and Technology issues can be very
complicated for developing countries that lack
the capacity to handle
• Sustainability for some developing countries
means surviving the current year
• Need to engage based on current challenges
• Custom solutions necessary
• Role for ASME in this
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