Energy transition needs gas not nuclear

A civilisation is in decline when logical thinking and evidence-based policy are angrily dismissed in favour of tribal dogma. Western civilisation is lurching in this dangerous direction. Bravery is needed from those who remain capable of rational thought.

A prime contemporary example is the energy transition. Arguing about the energy transition are the absolutists and the denialists.

Where gas producers can make carbon capture and storage feasible, they should be encouraged to do so. 

The absolutists demand that Australia open no new coal mines or gas fields. They require the governments of poor countries to shut their coal-fired power stations forthwith, despite no affordable alternative source of electricity being available.

In these countries, solar and wind power can play a role in electricity generation, but not totally and immediately. Renewable generation requires firming capacity in the nights and evenings, which can be provided by gas generators.

In fact, gas peaking and standby can hasten the closure of coal-fired power stations, which is desirable for the planet. But the neocolonial absolutists demand gas be excluded from the energy mix in poor countries.

The absolutists also oppose carbon capture and storage as a matter of dogma. The same goes for carbon offsets, regardless of their integrity.

Gas is also used to produce synthetic fibres; the kind Absolutists like to wear in preference to thirsty cotton and the wool of methane-emitting sheep.

Coking coal is used to produce steel. Absolutists oppose new coking coal mines. People in poor countries are not to have access to steel products, the type that rich-country absolutists use every day.

Denialists, on the other hand, such as former prime minister Tony Abbott, speak of the global warming hoax and describe believers in climate change as members of a cult. Denialists believe that not just absolutists are involved in this conspiracy against the western way of life, but so too are the United Nations, the NASA space agency and the world’s bureaus of meteorology.

Denialists have learned not to speak so loudly of these alleged hoaxes, cults and conspiracies, operating on the assumption that most voters under the age of 40 have been brainwashed into believing climate change is real and will cast their votes accordingly.

To address this electoral quandary, they’ve come up with the perfect strategy to ensure no climate action is taken – advocate the bypassing of renewables in favour of small nuclear modular reactors.

With cost blowouts precipitating the recent collapse of a flagship US project working on a small modular reactor, the prospects of this technology supplying electricity at competitive prices are highly questionable.

In any event, former NSW treasurer Matt Kean, though favourably disposed to small nuclear modular reactors, has pointed out that none would be ready for commercial deployment before 2040.

By that time, Australia’s fleet of ageing coal-fired power stations will be clapped out.

The Peter Dutton-led opposition voted against the Albanese government’s safeguard mechanism, the latest attempt to put a price on carbon for major emitters, despite the Business Council of Australia calling it “a very good policy”.

In an effort to continue the debilitating climate wars that have been raging for more than a decade, Dutton labelled the safeguard mechanism a “carbon tax 2.0”.

With no emissions-reduction strategy, plenty of hostility towards renewables and a promise of small modular reactors from 2040 at the earliest, the denialists have only one remaining option – to use taxpayers’ money to fund the construction of new coal-fired power stations. The private sector certainly won’t risk it.

It’s the old strategy of “why put off until tomorrow what you can put off forever”?

Or, as Malcolm Turnbull put it at the COP28 meeting: “Nuclear’s only utility is as … a means of supporting fossil fuels by delaying and distracting the rollout of renewables”.

There is a middle path between the absolutists and the denialists.

A rational decarbonising energy policy would include the legislated safeguard mechanism, solar and wind energy, and – for firming capacity – the use of gas, big batteries and, where economically viable, pumped hydro.

Where gas producers can make carbon capture and storage feasible, they should be encouraged to do so. Trading in high-integrity carbon offsets should be part of the solution, especially for countries that lack viable renewable energy resources.

In various combinations, these features of a rational climate policy have been adopted by the Rudd, Gillard, Turnbull and Albanese governments. They were opposed by the Abbott government and, largely, by the Dutton-led Coalition.

Between them, absolutists and denialists would oppose most – if not all – of these sensible features.

Finding a demilitarised zone between these warring tribes is as elusive as it was when the Senate voted down a carbon price 14 years ago. Yet, it seems that most of the voting public feels the policy approach now being taken by federal and state governments lies along that narrow path.

The lesson from this story is to let warring tribes slug it out and get on with sound policy in the national interest.

Craig Emerson is managing director of Emerson Economics. He is a distinguished fellow at the ANU, director of the Australian APEC Study Centre at RMIT and adjunct professor at Victoria University’s College of Business.

Source: https://www.afr.com/policy/energy-and-clim...