Fossil fuels and alternatives

With the global population continually increasing, and more people being lifted out of poverty, the forecasts of humankind's energy consumption are only going one way: upwards.

For centuries our burgeoning energy demands have been met by fossil fuels – coal, oil and gas, extracted from the Earth's crust. But burning these fuels has disastrous effects on the planet's climate, so we need to examine our alternatives – fast.

Here, CGTN Europe examines some of the key issues around this search for alternative energy sources – starting with a dire warning about what will happen if we don't...

The overwhelming majority of fossil-fuel reserves must stay in the ground or the planet's climate crisis will accelerate, according to a new study by researchers at University College London. 

Analysis suggests that even to stand a 50-50 chance of keeping global heating below 1.5 degrees Celsius – the growth-figure target enshrined in the Paris Agreement – countries and companies would need to leave 90 percent of coal reserves and 60 percent of oil and gas untouched. 

To increase the chances of avoiding climate catastrophe, reductions would need to be even steeper, leaving trillions of dollars of mineral wealth untapped – with inevitable economic effects on companies and countries invested in fossil-fuel extraction.

Calling the future "bleak" and the situation "absolutely desperate," the authors say the report "implies that many operational and planned fossil fuel projects [are] unviable."

Analyzing via geographical region, the report – published in Nature – says Europe would have to keep 90 percent of its coal, 72 percent of its oil and 43 of its gas in the ground. Other areas would face even more stringent restrictions. 

Russia and the former Soviet states would be required to leave 97 percent of their coal reserves, as would the U.S., while Australia would forgo 95 percent. Oil-rich Canada would have to leave 83 percent of its black gold underground, along with 83 percent of its coal and 81 percent of its gas. 

The report pleads for "countries that are fiscally reliant on fossil fuels" to urgently reassess their production, warning of "huge transition risk unless economies diversify rapidly." 

It cites the example that Middle Eastern oil production "needs to peak in 2020, which in combination with lower oil prices from demand destruction signifies large reductions in fiscal revenue, with Iraq, Bahrain, Saudi Arabia and Kuwait relying on fossil fuels for 65 to 85 percent of total government revenues at present."

The findings chime with an International Energy Agency (IEA) report published in May, which concluded that there could be no new fossil-fuel schemes if countries are to reach the goal of net-zero emissions by 2050. 

But while scientific opinion continues to coalesce on the need to close the gap between rhetoric and reality, opposition is also hardening to the idea of production reduction in countries which rely heavily upon fossil fuels. 

Only last week, Australia's resources minister Keith Pitt insisted that "Reports of coal's impending death are greatly exaggerated and its future is assured well beyond 2030," while Saudi Arabia's energy minister Prince Abdulaziz bin Salman called the IEA's report "a sequel of the La La Land movie."

With extreme weather increasingly linked to climate change around the world, the race is hotting up to find reliable sources of green energy – and hydrogen may be the answer.

For decades, hydrogen – Earth's most abundant element – has been hailed as a potentially revolutionary alternative to fossil fuels.

Green hydrogen is produced by splitting water using electricity generated from low-carbon sources, resulting in no greenhouse gas emissions. Green hydrogen can be used in cars and lorries. Hydrogen-powered aircraft are already being designed by Airbus, with a planned release of the first commercial plane by 2035.

Green hydrogen can also be used domestically for cooking and heating. Hydrogen heating is expected to power most homes in the UK by 2050.

There are other types of hydrogen which can be used to generate power, but none are as fully carbon-neutral. As of 2020, the global hydrogen market was valued at $150 billion and is expected to reach $600 billion by 2050.

China is the leader of the global hydrogen market, with an output of 20 million tonnes accounting for a third of global production. Beijing aims to generate half a million tonnes of green hydrogen by 2025.

Japan intends to transform the nation into a hydrogen society with plans to supply 10 percent of the power for electricity generation by 2050.

The EU has also unveiled its hydrogen strategy for a climate-neutral Europe, hoping hydrogen will comprise 15 percent of the EU energy mix by 2050.

And in the U.S., Joe Biden's $1 trillion infrastructure package includes $8 billion to develop hydrogen as part of his administration's climate agenda.

Wind turbines in Greece set a national record on September 6, accounting for 81 percent of the country's electricity output.

High temperatures, wildfires and flooding pretty much sum up the weather patterns in Greece since the summer. From unprecedented amount of rain in Evia, to the fires that ravaged hundreds of thousands of hectors of land in Ancient Olympia. Scientists blame it on climate change.

But Greece is fighting back – pushing for a transition to clean energy and carbon neutrality, by producing renewables at record levels.

"September 6 was a day of records for the Greek renewable sector: 81 percent of the total clean energy in the country was provided by wind and 60 percent of the total energy consumed that was offered by clean renewable energy sources," said Ioannis Margaris, vice-chairman of Independent Power Transmission Operator (IPTO), Greece's power-transmission system.

"We've had several periods in recent years in which renewables have provided a big percentage of the total energy consumption. Basically, we are undergoing a huge energy transition in Greece."

The thumping sound of the giant blades can be heard throughout Greece's hills, a sign that the country is adopting a green agenda and aiming to meet it's climate goals.  

Hundreds of miles of underwater cables link Greece's mainland power stations to the country's popular vacation destinations. It allows the islands to ditch their oil-burning generators for renewable power from Greece's abundant wind and sun.

IPTO provides for the electrical interconnection of almost all Greek islands, in the framework of a green investment program amounting to $5.7 billion over the decade to 2029, starting with Greece's largest island of Crete and then moving north towards the Cyclades.

The interconnections have already helped oil-fired power plants in Paros, Syros and Mykonos to reduce CO2 emissions by 370,000 tons.

But IPTO isn't limited by Greece's borders – it's expanding as the European Union seeks to be a global leader in the race to stop climate change.

"If we have grid connecting Greece not only with countries to the north but also to the south and east – Cyprus, Israel, Egypt – we can make sure that whenever there is an issue of adequacy within our country we can import energy from renewable energy sources from Cyprus, Israel or Egypt," says Margaris.

"The same also stands for these countries: they can import energy from us."

The renewables vs carbon debate is leaning more and more toward abandoning fossil fuels and becoming carbon-neutral. Although Greeks still seem hesitant over the transition to renewables, this summer's wildfires and extreme weather patterns helped them understand that climate change is real and present.

"Greece is steadily transforming itself into a regional hub for green energy," said prime minister Kyriakos Mitsotakis. "Our recent agreement with Egypt for a new electricity interconnection is a case in point, and Greece is also the logical entry point for green hydrogen, produced in the Middle East and northern Africa, into the European market."

Although Greece is still struggling to stay on its feet from the devastating decade-long debt crisis, its government is taking drastic measures.

With an average of more than 250 days of sunshine a year and surrounded by water, Greece could produce renewables on a very large scale and help the European Union meet its goal of abandoning fossil fuels by 2050.

The Eden Project's huge geodesic domes are in effect a giant greenhouse, home to the world's largest indoor rainforest. Thousands of exotic tropical trees and plants cover an area the size of three soccer pitches, which before COVID-19 attracted more than a million visitors a year.

It takes an awful lot of energy to keep this indoor rainforest hot and humid, with temperatures up to 35 degrees Celsius. So the Eden Project has decided to commission one of the country's first geothermal units. The company has raised around $20 million to build the power plant. 

"There's all sorts of renewable technology," the Eden Project's interim CEO David Harland tells CGTN. "Geothermal is baseload, so really important that it's on basically all of the time, whereas solar and wind – great technologies, don't get me wrong, but the sun has to shine and the wind has to blow. The other thing about it is it's in an incredibly small footprint."

Geothermal drilling is now underway, just a short distance from the domes pouring down through the tough granite rock to access the Earth's natural heat, deep underground. 

How geothermal works

"A geothermal project is where you drill down into the Earth to find heat and permeability," explains Augusta Grand, executive director of Eden Geothermal. "You drill down four and a half kilometers, where it'll be about 180 or 190 degrees Celsius. Cold water goes down that hole. You drill another hole, hot water comes up that hole and then you make electricity and direct heating from that source."

They've almost reached that target depth, but it will take another year before the entire project is up and running. The UK does have substantial wind and solar facilities, and the government's announced some $360 million in new subsidies to encourage further wind, solar and tidal energy projects.

But geothermal is not included, and Britain is lagging behind several other European countries where around 140 deep geothermal power plants are already in operation. 

"It is expensive to start off within a new geology," admits Grand, "but as soon as you start practicing in the geology, the costs will come down. And in Paris, where there are 40 different heat projects, it's as cheap as gas."

Once it is operational, the system should provide enough power and heat for the Eden Project, as well as up to 7,000 nearby homes. The hope is that if successful, it could pave the way for deep geothermal to play a greater role in the UK's energy needs. 

Is Carbon Pricing the Answer?

The European Union is working on a tough new carbon pricing system for goods imported into the bloc.

But industries that fall into the European Commission's crosshairs, such as steel and fertilizer producers, say they need more time to cut their emissions.

For every tonne of carbon dioxide over a certain cap, European airlines, energy producers and manufacturing plants have to pay up, buying credits on the EU’s Emissions Trading System or ETS.

Now the European Commission also wants to police the carbon footprint of goods imported into the EU.

The planned scheme – called the Carbon Border Adjustment Mechanism or "C-Bam" – would mean importers have to buy carbon certificates to move goods into the bloc.

"As you know, many EU businesses are already subject to the EU ETS system," said Paolo Gentiloni, European Commissioner for Economy. "But as long as industrial installations outside the EU are not subject to similar ambitious measures, these efforts can lose their effects.

"This is why we need a new CBAM, an environmental policy tool that will equalize the price of carbon between domestic products and imported goods for certain sectors."

How it works

The price for certificates will match what the company would have paid to make their products inside the EU. Any carbon taxes the business has already forked out for outside the EU could also be deducted from the cost.

The scheme is designed to cut so-called "carbon leakage" – and encourage other countries to introduce stricter emissions policies.

"Carbon leakage is the hypothetical situation where a company would relocate to a country where there are less strict climate policies, in the form, for example, of carbon pricing," explains Agnese Ruggiero, policy officer at Carbon Market Watch. "And this would result in higher emissions globally."

As the scheme works its way to becoming EU law, industries that would be targeted – such as steel and cement producers – are pushing back.

The European Steel Association says current caps on emissions should remain until 2030 – the EU proposal would start phasing them out from 2026 onwards.