Tuesday, January 09, 2024

India’s plans to double coal production ignore climate threat

Bloomberg News | January 9, 2024 

Stock image.

As climate diplomats at COP28 in Dubai debated an agreement to transition away from fossil fuels last December, India was facing another energy conundrum: It needed to build more power capacity, fast.


“To meet growing demand,” the Indian government said on Dec. 11 it expects to roughly double coal production, reaching 1.5 billion tons by 2030. Later, the power minister Raj Kumar Singh set out plans on Dec. 22 to add 88 gigawatts of thermal power plants by 2032. The vast majority of which will burn coal.

The move to invest more in the world’s dirtiest fuel – one of the biggest contributors to global warming – may seem counterintuitive for the South Asian country, which is highly vulnerable to climate impacts. Yet, as the country heads into elections during April and May, Prime Minister Narendra Modi is keen to avoid any risks of power shortages. Along with record heat waves India has seen big spikes in peak demand for electricity over two successive years.

“India’s policy is to build everything. Push for renewables, but also push for coal and other fossil fuels,” said Sandeep Pai, director of the climate-focused organization Swaniti Global. “The justification is an increase in power demand.”

When it comes to renewable energy, however, India is failing to build enough to meet its ambitious goal of 500 gigawatts of clean-energy capacity by 2030. The rates at which solar and wind power was installed over the past few years is about a third of what’s needed, according to BloombergNEF.

There is a combination of factors affecting the renewables roll out. The top reasons, says Rohit Gadre of BNEF, are the misaligned incentives of state-owned electricity retailers, difficulty of acquiring the land necessary and lack of consistent policies at federal and state levels. As a result, even as the demand for power is rising, there’s not enough appetite among private investors to speed up renewable investments.

That is not to say things will be smooth for coal either, which is facing similar challenges in attracting new investment. “Solar and wind power plants can be built quickly, whereas coal power plants will take much longer and at higher costs,” said Vibhuti Garg, South Asia director for the non-profit Institute for Energy Economics and Financial Analysis.

Neither Pai nor Gadre expect India to reach the coal targets it has set. BNEF’s economic-transition scenario sees India’s coal use topping out at 1.1 billion tons before 2040.



Ultimately, India needs investment in its energy infrastructure as the lower middle-income country seeks economic growth. Per capita electricity consumption for India is far below those of developed countries or even China. And India is still far from using up its fair-share of the global carbon budget.

India, as well as other big developing countries, also need more incentives to choose a greener path. Over the last three years, the Group of Seven nations have designed the Just Energy Transition Partnership to help South Africa, Vietnam and Indonesia to reduce coal use. Those deals have been messy and yet to show results.



While the world may have agreed to transition away from fossil fuels at COP28, it hasn’t found effective ways to help countries like India replace coal, environment minister Bhupendra Yadav suggested this week at a launch for the book titled Modi Energising A Green Future. That doesn’t have to be simply about rich countries handing out cash, he said at the event, but better policies, technology transfer and skills training are also needed.

Pai echoed this view. “The world needs to offer something to India to not carbonize,” he said. “The main challenge is the world really doesn’t offer much to India or to any developing country.”

(By Akshat Rathi)
US seeks to jumpstart production of higher-energy uranium now made in Russia

Reuters | January 9, 2024 |


Credit: Centrus Energy

The US is seeking bids from contractors to help establish a domestic supply of a uranium fuel enriched to higher levels for use in a next generation of reactors, a fuel currently only available in commercial levels from Russia, the Department of Energy said on Tuesday.


The DOE is seeking contracts for a maximum of 10 years from enrichment service companies to produce so-called high assay low enriched, or HALEU, uranium fuel that is enriched up to 20%, compared with traditional uranium fuel used in today’s reactors of about 5%.

The department has about $500 million in funding for HALEU production from the 2022 Inflation Reduction Act, and sought proposals late last year for additional HALEU production services. The program could be expanded in coming years, depending on congressional appropriations.

Uranium price hits new post-Fukushima high

HALEU is expected to be needed for a planned generation of reactors in the works by companies including X-energy and TerraPower, but output has been delayed as the reactors are not yet built.

“It’s a chicken-or-egg sort of process,” Jon Carmack, the department’s deputy assistant secretary for nuclear fuel cycle, said in an interview. Carmack said the government needs to invest enough money to show initial demand for producers, so they will build capacity, apply for licenses and get HALEU plant design and construction projects underway.

President Joe Biden’s administration sees the new reactors and maintaining the current fleet of nuclear plants as critical for its climate change agenda. Ali Zaidi, Biden’s national climate adviser, said boosting domestic uranium supply will increase energy security, generate high-paying union jobs, and boost economic competitiveness.

Nuclear proliferation experts warn that an increased dependency on HALEU around the world could increase proliferation risks because the fuel is closer to fissile material for nuclear weapons than traditional fuel.

The only company currently selling commercial shipments of HALEU is TENEX, part of Russia’s state-owned energy company Rosatom.

Centrus Energy, the only US company with a license to produce HALEU, and which is supplying the DOE with a small amount of the fuel for demonstration purposes, was encouraged that the request for proposals could lead to more production at its plant in Ohio. Centrus “looks forward to the opportunity to compete for the funding necessary to expand our production,” said spokesperson Lindsey Geisler.

European uranium enrichment company Urenco could also eventually produce US HALEU but does not yet have a license to do so. Urenco did not immediately respond to a request for comment.

(By Timothy Gardner; Editing by Jonathan Oatis and Andrea Ricci)


UK aims to break Russia’s stranglehold on nuclear fuel market with £300m uranium programme

Story by Rhodri Morgan • 

Hinkley Point C is one of the government's flagship nuclear reactor programmes© Provided by City AM

The UK has announced a £300m commitment to developing its nuclear fuel program to move away from dependence on Russia.

This past weekend, the government said it aims to end what they say is Russia’s reign as the only commercial producer of high-assay low-enriched uranium (HALEU); a type of enriched uranium needed for the next generation of reactors.

The investment is part of plans to help deliver up to 24GW of clean, reliable nuclear power by 2050 – a quarter of the UK’s electricity needs.

“The UK will become the first country in Europe to launch a high-tech Haleu nuclear fuel programme, strengthening supply for new nuclear projects and driving Vladimir Putin further out of global energy markets,” the Department of Energy Security and Net Zero said in a statement.

Secretary of State for Energy Security and Net Zero, Claire Coutinho, said:

“We stood up to Putin on oil and gas and financial markets; we won’t let him hold us to ransom on nuclear fuel.

“We will be the first nation in Europe outside of Russia to produce advanced nuclear fuel.”

The news comes on the eve of a week when the government is expected to publish its long-awaited and several times delayed nuclear strategy.

An industry source told City A.M.: “Britain is good at nuclear fuel in the way that we are not in other areas of the nuclear sector.

“The West has always waited around for Russia who have the facilities set up to do so but this announcement is no substitute for a wider strategy for the sector.”

A new vision for advanced modular reactors, of which Hinkley Point C is one, is expected to be laid out, as well as a roadmap for small module reactors (SMRs), developers of which have been increasingly calling for government guidance over recent years.

HALEU is the primary fuel used for SMRs and to this end, Robert Crayfourd, co-founder of Jersey-based Nuclear-focused investment company Geiger Counter, said the investment news can only come as a positive.

“It’s not entirely clear exactly how this money will be allocated at this stage, but directionally it is clearly positive as the expected growth in SMR’s globally from late this decade will require more mining of uranium, as well as enrichment and fabrication into fuel rods,” he told City A.M.

Utilities across the world have been running down natural uranium stockpiles since 2018, when a glut of oversupply dominated the market, buying and selling at multi-decade lows as and when needed.

But as fears of under-supply circulate, panic buying ensues and this will likely ride out for the next year or two, driving the price higher.

Research published last week showed that the portion of UK power produced from nuclear stations sank to below 40-terawatt hours in 2023 – a 40-year low.

The UK generates around 15 per cent of its electricity from about 6.5 GW of nuclear capacity, spread across five active plants.

However, 85 per cent of its nuclear power-producing stock is due to come offline within the next four years.

 

Iceland Plans To Drill Into a Volcano's Magma Chamber for Geothermal Energy Extraction in 2026

Iceland is a nation adorned with numerous boreholes strategically drilled into its rock, serving the purpose of extracting geothermal energy. Adding to this landscape of seemingly mundane features, another borehole is set to join the ranks, promising a venture far from dull and routine.

ICELAND-ENVIRONMENT-POLLUTION-LEISURE-ENERGY
(Photo : HALLDOR KOLBEINS/AFP via Getty Images)
The Reykjanes geothermal power station is pictured on March 23, 2017 in Reykjanes at the southwestern tip of Iceland.

Iceland's Magma Drilling Project for Super-Hot Geothermal Power

Iceland is on the brink of scientific history as it endeavors to become the first nation to drill into a volcano's magma chamber, marking an ambitious project known as the Krafla Magma Testbed (KMT) set to commence in 2026.

The initiative aims to construct a borehole in the magma chamber of Krafla, a volcano situated in Iceland's northeastern region, positioned between one and two miles below the Earth's surface. This innovative approach is anticipated to unlock an abundant source of geothermal energy, propelling Iceland's homes and buildings into a new era of sustainable power.

Iceland has long been a pioneer in harnessing geothermal energy generated within the Earth, employing turbines to convert this heat into electricity. Presently, geothermal power plants in Iceland drill wells exceeding a mile in depth to extract hot water vapor, which is then separated into liquid water and steam.

However, University of Alaska Fairbanks volcanologist John Eichelberg said that the current geothermal energy extracted is relatively cool compared to steam at fossil fuel power plants. This inefficiency at lower temperatures has spurred interest in exploring super-hot geothermal sources.

The Krafla Magma Testbed project holds the promise of revolutionizing Iceland's energy landscape by tapping into the higher temperatures emanating from the magma chamber.

By doing so, the endeavor could yield a more potent and efficient energy supply, as these wells, drawing from near-magma super-hot geothermal sources, are anticipated to be up to ten times more powerful than conventional wells. This advancement could potentially enable the production of equivalent power output with fewer wells, presenting a significant leap in geothermal energy efficiency.

READ ALSO: Geothermal Energy Reaches a Milestone With Texas-Based Startup's Breakthrough Technology, Making Large-Scale Adoption Feasible

Safety Concerns on the KMT Project

From 1975 to 1984, Krafla, among the world's most active volcanoes, underwent a series of eruptions. Using seismometers, scientists were able to precisely locate its magma chamber approximately 1.2 miles beneath the caldera.

Landsvirkjun, Iceland's primary power company, has been operating a geothermal plant at Krafla since the late 1970s, featuring 33 boreholes tapping into on-site geothermal energy, yet none extending to the actual magma chamber.

Although drilling to such depths presents a challenge, experts affirm the process's safety despite the magma's extreme temperatures, reaching up to 2,372°F (1,300°C).

In 2009, the unintentional drilling into Krafla's magma reservoir during the Iceland Deep Drilling Project demonstrated the safety of drilling into magma without inducing an eruption, provided the right tools are utilized. Project manager Björn Þór Guðmundsson emphasizes the KMT project's goal of developing materials capable of withstanding the extreme conditions of the magma chamber.

Commencing in 2026, KMT embarks on a journey to the magma chamber, planning to use sensors and fluid injection experiments for global insights. The ambitious project anticipates breaking ground near the initial borehole for a two-month journey, potentially revolutionizing volcanic activity forecasts worldwide with advancements like magma-resistant sensors.


RELATED ARTICLE: Startup Energy Company Plans to Drill the Deepest Hole Into Earth's Crust to Unleash Limitless Power

 

Mammalian Brain Cells Found to Contain High Mercury Levels; How Do Wild Terrestrial Species Adapt From Neurotoxins?


According to the US Environmental Protection Agency (EPA), human activities emit 4.9 million pounds (2,220 metric tons) of mercury compounds every year. Several studies have focused on the exposure and effects of mercury in predatory fish and marine mammals.

Mammalian Brain Cells Found To Contain High Mercury Levels; How Do Wild Terrestrial Species Adapt From Neurotoxins?
(Photo: Wikimedia Commons/ BartBotje )

It is well-known that people should limit the consumption of certain types of fish, like tuna, due to mercury biomagnification. However, little is known about mercury accumulation in the brains of wild terrestrial species.


Presence of Neurotoxins in Mammalian Brain

Dr. Yulia Pushkar from Purdue University's College of Science has maintained a brain imaging program with her group, showing expertise in sample preparation and data analysis. Her research team was tasked with checking for mercury in the brains of mongooses collected on Okinawa Island in Japan.

At first, Pushkar was skeptical whether mercury could be detected since neurotoxic elements are present in ultra-low concentrations even if they get into the brain. Her team took the specimens to the Advanced Photon Source at Argonne National Laboratory, where the brains were exposed to intense X-rays. Surprisingly, brain scans revealed the presence of mercury in these invasive animals.

The mystery of how mercury enters the brain of mongoose remains unresolved. Experts blame the water they drink, the bird eggs they consume, exposure to minerals, or even the air they breathe. Regardless of the cause, scientists know this is a terrible sign.

According to Pushkar, mercury is very toxic at low concentrations since it can bind and affect the function of essential biomolecules. The impact of detoxification will depend on the uptake and binding constant inside the detected accumulations and potential leakage if brain cells die. Currently, there is no possible way to dissolve these aggregates safely from tissue, and there are no reports of reversing mercury poisoning of the neural system. The main approach that can be taken is to avoid any exposures.

After refining the scans, the researchers achieved a resolution of a few tens of nanometers to observe the affected cells of the brain. Their collaborative findings were discussed in the paper "High-resolution imaging of Hg/Se aggregates in the brain of small Indian mongoose, a wild terrestrial species: insights into intracellular Hg detoxification."

READ ALSO: Marine Fog Endangers Mountain Lions with High Concentration of Mercury

Filtration Mechanism of Mammals

As the researchers scanned brain samples, they traced areas of the brawl with higher mercury content. They identified that cells of the choroid plexus and astrocytes of the subventricular zone contain mercury-rich puncta (approximately 0.5 to 2 microns in size).

The team believes these cells help filter mercury from the blood and brain tissue. This mechanism is carried out with the help of selenium, although the particular selenium-containing biomolecules where mercury binds remains to be discovered.

Researchers expect the human brain to similarly react to mercury through interactions with choroid plexus cells and astrocytes. However, they cannot confirm yet if the human brain has enough selenium-containing biomolecules to bind to mercury.

New critical mineral mines in British Columbia could generate nearly $600 billion, says MABC

In the province of British Columbia, 16 proposed critical mineral mines, worth C$36 billion in near-term investment, 300,000 person-years of employment 

 January 9, 2024

The KSM gold-copper project, 70 km north of Stewart, B.C. Credit: Seabridge Gold

COMPANIES Mining Association of British Columbia


In the province of British Columbia, 16 proposed critical mineral mines, worth C$36 billion in near-term investment, 300,000 person-years of employment and C$11 billion in tax revenues, are at a critical juncture, a new independent economic impact analysis conducted for the Mining Association of British Columbia (MABC) has found.

There are currently 10 metal mines, seven steelmaking coal mines and two smelters operating in BC, which is regarded as a key global mining jurisdiction. B.C. is Canada’s leading producer of copper and steelmaking coal, second largest producer of silver, and only producer of molybdenum, MABC said.

The study by Mansfield Consulting examined 14 potential critical mineral mines and two mine extensions, and found the long-term economic impact of operating these mines over several decades could be nearly C$800 billion (US$599 billion).

While Canada is aiming to become a bigger player on the world stage in terms of critical minerals supply, the mining permitting process in British Columbia is known for its lengthy delays, and finding solutions are a priority, the provincial government has said.

“The realization of benefits from these critical mineral projects is dependent on BC having competitive fiscal and regulatory policies that will attract the investment necessary to grow and sustain the sector. The provincial government’s forthcoming critical minerals strategy is fundamental to these efforts,” MABC CEO Michael Goehring said in a statement on Monday.

“This is a generational opportunity which must be seized and could position BC as a leading global supplier of responsibly-produced critical minerals. We want to move forward with the Governments of Canada and British Columbia, First Nations, local governments, and labour, to unlock critical mineral developments for the benefit of all British Columbians,” Goehring said, adding that the proposed critical mineral projects create opportunities for First Nations partnerships to advance economic reconciliation and self determination.

The study also assessed the economic benefits of advancing five proposed precious metal mines, including gold. The long-term combined impact of the proposed precious metals mines over their lifespan exceeds C$29.5 billion, creating over 96,000 person-years of employment and generating C$5.3 billion in tax revenue.

Seabridge Gold’s Kerr-Sulphurets Mitchell (KSM) project in British Columbia’s famed Golden Triangle is the world's top ranked gold project, but the last new gold mine – the Brucejack one of the highest grade gold mines in the world – went into production seven years ago.

“With the right government policy, these critical and precious mineral projects would further advance the mining and smelting sector’s foundational role in BC’s economy which includes well-paid family-supporting jobs and opportunities for service and supply businesses in both rural and urban communities,” Goehring said.

Avino gets community Ok to develop La Preciosa

Canada’s Avino Silver & Gold Mines (NYSE, TSX: ASM) has signed a long-term land-use agreement with a local community surrounding La Preciosa mine in Durango, Mexico.

President and CEO David Wolfin said the community development agreement was a “fantastic achievement” as the company can now begin hauling old surface stockpiles to its mill for processing It can also file for an environmental permit for underground extraction. 

Pending regulatory approval, the Vancouver-based silver producer will start developing the ramp down to its initial target of the high-grade Gloria vein.

La Preciosa hosts one of the largest undeveloped primary silver resources in Mexico and is located approximately 19km from the current Avino mine, which has an operating 2,500 tpd mill processing facility and all the necessary infrastructure to allow for mineral processing from the mine.

Avino finalized the acquisition of the property rom Coeur Mining (NYSE: CDE) in March 2022 and has been working since on bringing La Preciosa into production.

Its flagship mine, Avino, began commercial production in 2016 and produced around 591,208 silver equivalent ounces in the third quarter of 2023, bringing the 12-month trailing total to 2.63 million silver equivalent ounces.

US Supreme Court rejects Alaska’s Pebble mine revival bid

The US Environmental Protection Agency (EPA) used a pre-emptive veto against the Pebble mine on the grounds that it poses a potential risk to the salmon population in Bristol Bay.

January 9, 2024

Last year in January, the EPA used its veto against the Pebble mine project. 
Credit: Emil O/Shutterstock.com.

The US Supreme Court has declined to review the challenge by Alaska against the EPA’s rejection of the Pebble mine project.

The decision effectively upholds the ruling by the EPA, which had previously issued a pre-emptive veto against the proposed mine, citing environmental concerns.

The Pebble Mine, owned by Northern Dynasty Minerals, has been touted as the world’s largest undeveloped copper, gold and molybdenum project.

Despite having the support of the Alaskan State Government, the project faced significant opposition.

It is located in the Bristol Bay watershed, home to the world’s largest sockeye salmon fishery and 25 federally recognised indigenous communities, CNN reported.

The EPA’s final determination in January 2023 to prohibit the mine’s construction was based on the potential risks it posed to the Bristol Bay salmon population.

The agency’s decision to restrict the disposal of construction and mine waste within the watershed was seen as a decisive move to protect the environment and the subsistence needs of the local communities.

Alaska’s attempt to overturn the EPA’s decision reached the Supreme Court after the state argued that the nation’s highest court had the jurisdiction to review the case before it was considered by lower courts.

However, with the Supreme Court’s refusal to hear the challenge, the EPA’s ruling stands, effectively vetoing the Pebble Mine project.

The controversy surrounding the Pebble Mine has spanned approximately two decades, with widespread criticism from various interest groups across Alaska and other states, as well as opposition from many Alaskans themselves.

Northern Dynasty’s Pebble Limited Partnership CEO John Shively said: “While it is a disappointing decision, it is important to note that this is not a comment on the arguments put forward by the state.

“We have long stated our belief that the EPA has acted outside of its regulatory authority and that remains our position today. The legal issues raised by the state will now work their way through the federal courts.

“We will also evaluate our legal options in contesting the extraordinary steps the EPA has taken to pre-emptively stop the Pebble Project. Pebble is an important project for Alaska and the nation.

“It could create jobs for Alaskans, provide an economic catalyst for the state and provide a much-needed source of critical minerals for the long-term safety and security of the United States.”


Union members stage demonstration at First Quantum’s Panama mine

Bloomberg News | January 9, 2024 |

Demonstrations against the contract have turned into an anti-government, 
end-to-all-mining movement. (Image: Screenshot of stock video.)

Hundreds of Panamanian construction workers staged a demonstration at a shuttered copper mine that has become the subject of nationalistic sentiment in the Central American nation.


Members of the Suntracs union waved flags at the entrance to the mine operated by Canada’s First Quantum Minerals Ltd. and hung a giant sign across the main gate that read: “This is sovereign territory” on Tuesday.

Suntracs, which played a key role in protests that led to the mine’s closure late last year, planned the demonstration to coincide with Martyrs’ Day, which commemorates anti-US riots in 1964 over sovereignty of the Panama Canal.

While the objectives of the demonstration were unclear, it’s the latest sign of the role played by resource nationalism in the shutdown of the Cobre Panama mine. A process to extend its operating contract sparked street protests, a withdrawal of government support and a Supreme Court ban — all in the lead-up to general elections in May.

Both First Quantum and a separate union of mine workers have called on security forces to prevent unrest at the mine site, where the Vancouver-based company still has some workers and installations.

Separately, Suntracs is staging protests in Panama’s capital city and several provinces over the closing of union bank accounts. The union didn’t immediately respond to a request for comment.

(By James Attwood and Michael McDonald)
AUSTRALIA


Alcoa to cut Kwinana refinery production in phased-out shutdown

Cecilia Jamasmie | January 9, 2024 | 

The Wagerup alumina refinery is another of Alcoa’s facilities in Western Australia. (Image courtesy of Alcoa.)

Aluminum producer Alcoa (NYSE: AA) confirmed on Tuesday that it plans to stop production at its loss-making Kwinana refinery in Western Australia after more than 60 years of operations.


The company cited challenging market conditions and the facility’s age as the main reasons behind the decision, which will leave more than 750 people out of work.

The refinery will cease in the third quarter of this year, at which time its workforce would be cut from about 800 to about 250. An additional 200 contractors are expected to be affected.

Alcoa said that staff numbers would be further reduced to 50 in 2025.


Executive vice president Matt Reed said the decision reflected the 60-year-old plant’s age, scale and cost to operate as well as current market conditions.

“Today’s curtailment decision comes only after thorough and careful deliberation, and we acknowledge that this action will impact workers, business partners, and the community,” Reed said.

Western Australia Premier Roger Cook and Federal Resources Minister Madeleine King said the outcome was “disappointing.”

“Today will be a difficult day for workers in my local community of Kwinana,” Cook said. “My government will step up to provide supports for local workers to retrain, reskill and look for new career opportunities in the local area.”

The plant was the first of Alcoa’s three Western Australia alumina refineries and it had the capacity to produce about 2.2 million tonnes of the raw material used to make aluminum.

Kwinana has been operating well below nameplate capacity for the past year owing to operational issues, falling grades of bauxite and permitting setbacks. It accounts for 1.2% of global output of alumina, according to figures from the London-based International Aluminium Institute.

BMO analysts noted the refinery has historically been a relatively major supplier of merchant alumina to the Middle East, so a closure announcement at a time of high alumina prices in China following bauxite availability challenges may see upward pressure on the international spot price.

“With Rio Tinto also writing down the value of its Yarwun refinery last year, we see potential that future years will see higher volumes of bauxite exported from Australia and lower volumes of alumina,” BMO Colin Hamilton, head of Global Commodities, said in a note on Monday.

The US-based company said it now plans to mine lower-grade bauxite in Western Australia until it gets to its next mining phase, expected to be around 2027.

The announcement follows Alcoa’s recent change in leadership. The Pittsburgh-based company shocked the markets in September with the sudden news of William Oplinger replacing Roy Harvey as its chief executive officer.

Alcoa’s alumina business segment accounts for about 28% of total revenue. The division was described as “marginal” by Oplinger after assuming the top post.

 Norway approves deep sea mining in Arctic Ocean


Cecilia Jamasmie | January 9, 2024 | 

The area opened to exploration covers about 280,000 square kilometres (108,000 sq. miles), about the size of Ecuador or the state of Nevada. (Image courtesy of Empetre | Flickr Commons.)

Norway’s parliament approved on Tuesday commercial plans to open the Arctic Ocean to seabed mineral exploration, despite environmental groups and the fishing industry’s warnings that the move would put the biodiversity of vulnerable ecosystems at risk.


The bill, voted in 80-20 by lawmakers
, allows the exploration of around 280,000 sq km (108,000 sq m) of Arctic seabed, an area bigger than the size of the United Kingdom, between Norway and Greenland.

It is anticipated that an agreement on deep-sea mining in international waters could follow later in the year.

The move by the European country, where vast oil and gas reserves have made it one of the world’s wealthiest nations, aims to diversify its economy away from fossil fuels.

But it puts the country at odds with the EU and the UK, which have called for a temporary ban on the practice because of concerns about environmental effects.

“We’ve mapped vast areas in the northern Norwegian Sea since 2017. We’ve taken samples and collected data about minerals and metals found on the seabed,” the government said in a statement. “We’ve done this by means of our own expeditions, and also in cooperation with expert communities from universities.”

The Norwegian continental shelf contains sulfide crusts, which may hold as much as 45 million tonnes of zinc. Manganese crusts, also present, may have around 3 million metric tonnes of cobalt, according to a white paper released by the government last June.

Critics were quick to react. Greenpeace called it “a shameful day” for Norway. “It is embarrassing to watch Norway positioning itself as an ocean leader while giving the green light to ocean destruction in Arctic waters,” said Frode Pleym, head of Greenpeace Norway. “But this doesn’t end here. The wave of protests against deep sea mining has only begun.”

“Black mark” on Norway’s reputation

Kaja Lønne Fjærtoft, global policy lead for WWF’s No Deep Seabed Mining Initiative, said the organization was drawing a “small glimmer of hope” from the fact that extraction licences would still need parliamentary approval, an amendment added after strong international pushback.

The Environmental Justice Foundation (EJF) said the decision, would act as “an irrevocable black mark on Norway’s reputation as a responsible ocean state”.

Analysts highlight the risk of geopolitical tension in Europe’s northern and baltic regions. The area Norway has opened up to exploration, in the Barents Sea and Greenland Sea, is near the Arctic islands of the Svalbard archipelago. Oslo claims it has the sole right to mine in this area, but Russia and the European Union dispute this claim.

A section of a sulphide sample, obtained during the Norwegian Offshore Directorate’s expedition to the Mohns Ridge in the Norwegian Sea in 2020.
 (Image: Øystein Leiknes Nag, Norwegian Offshore Directorate.)

According to the nation’s Ministry of Petroleum and Energy, the 280,000km2 (108,000 sq miles) along the mid-Atlantic Ridge, contains volcanic springs that surge from the Earth’s crust. They are believed to host an estimated 38 million tonnes of copper—more than the world’s approximate annual copper production.

A government-sponsored survey also found rare earth elements in polymetallic sulphides, or so-called “black smokers”, nearly 3,000 metres (9,842 feet) deep.

While international rules for seabed mineral extraction are yet to be set, Norway doesn’t need to wait, because it plans to search for minerals on its extended continental shelf.

Proponents of deep sea mining argue that extracting raw materials from the seafloor will enable a faster transition to a low-carbon economy and could come at a lower environmental cost than terrestrial mining.

Scientists say very little is still known about the depths of the world’s oceans — only a small fraction of which humans have explored — and many are concerned about the impacts on these ecosystems already affected by pollution, trawling and the climate
 crisis.

Norway's Turn Towards Deep-Sea Mining Dismays Experts

The country has been hailed as an ocean champion in recent years, but its turn towards seabed mining raises concerns for life in its waters

Proposed mining lease areas between Jan Mayen, Svalbard and Norwegian mainland. Lease areas in red, MPAs in blue (China Dialogue Ocean)
Proposed mining lease areas between Jan Mayen, Svalbard and Norwegian mainland. Lease areas in red, MPAs in blue (China Dialogue Ocean)

PUBLISHED JAN 7, 2024 1:46 PM BY CHINA DIALOGUE OCEAN

 

 

 [By Olive Heffernan]

Norway, renowned for its substantial offshore oil and gas reserves, made a surprise move in 2021 to rebrand itself as an ocean champion. However, this environmental turn is being reversed as the government pursues commercial mining in the country’s extended seabed shelf along with new oil and gas exploration.

When it pledged to sustainably manage 100% of its coastal waters by 2025, Norway encouraged other nations to do the same, through a global initiative it co-chairs called the High-Level Panel for a Sustainable Ocean Economy. By 2022, 17 nations covering 46% of the world’s coastal waters had signed the pact.

Their ambition, to chart a course toward better ocean stewardship, was informed by a two-year scientific review from 250 global experts. The panel also sought advice from more than 135 organisations across industry, finance and civil society.

In a 2020 report, expert advisors to the panel concluded that certain activities, specifically oil and gas exploration and deep-sea mining, were “difficult to align with the definition of a sustainable ocean economy”. They encouraged huge investments in sustainable industries, such as carbon storage and renewable ocean-based energy production.

But, in a departure from this expert advice, Norway is pursuing a strategy of intensified seabed extraction for mineral, oil and gas reserves. In June, the nation approved new permits, worth US$18.5 billion, to expand offshore oil and gas drilling.

In the same month, it also proposed opening up 280,000 square kilometres of its seafloor – an area the size of Ireland and the UK combined – to deep-sea mining, a nascent industry with unknown and potentially disastrous impacts for marine ecosystems. 

Six months later, the proposal to progress deep-sea mining was met with cross-party support in the parliament, making Norway the nation most likely to begin commercial extraction of rare metals from the ocean.

Mining the deep

Up until now, no body has succeeded in commercially exploiting deep-sea minerals at scale.

A parliamentary debate on 4 January, followed by a vote, will decide the fate of Norway’s plan. If met with approval, the government will announce specific areas available for exploration for commercial grade ores in 2024. The sites will be scattered in the Barents, Norwegian and Greenland seas.

According to the Ministry of Petroleum and Energy, several Norwegian companies – mostly with expertise in offshore oil and gas exploration – have shown an interest in seabed mining and are likely to apply for exploration licences. The March acquisition by Norwegian start-up Loke Marine Minerals of UK Seabed Resources, a deep-sea mining subsidiary of the US weapons manufacturer Lockheed Martin, makes it another likely applicant for a licence under Norway’s Seabed Minerals Act.

The majority of the proposed mining area is in Arctic waters, where Norway has an extended continental seabed, giving it jurisdiction over these resources, according to Fredrik Myhre, head of oceans for WWF Norway.

Recent surveys carried out by the Norwegian Offshore Directorate revealed substantial quantities of copper, cobalt, magnesium and rare earth minerals at these locations, in two forms: manganese crusts and inactive hydrothermal vents.

The mineral-rich crusts cover rock formations and accrete over long time periods, while the vent deposits are formed when hot springs rise up through the seafloor and precipitate leached metals and minerals.  

Although deep-sea mining technology is still under development in Norway, companies elsewhere have designed mammoth excavators – each around 15 metres long, 4 metres wide, and 270 tonnes – to cut and grind mineral-laden rocks from the seabed. 

By mining these resources, the Norwegian government hopes to secure its own supply of the ores needed to build green energy technologies, such as EV batteries, wind turbines and solar panels.

In an email, Norway’s Ministry of Petroleum and Energy said: “Seabed mineral activities must take place in a prudent and safe manner and in due consideration of the environment”.

But conservationists say that many of the earmarked sites contain vulnerable ecosystems and species that are likely to be negatively impacted by mining. Daniel Bengtsson for Greenpeace Nordic says that one area, close to Jan Mayen Island in the Arctic, is a well-known biodiversity hotspot. “This is an area where whales migrate, it’s a feeding ground for large marine mammals, it is important for seabirds”, he says. “There’s no doubt that these are sensitive areas”, says Bengtsson, adding that there’s also a growing concern that mining could impact the ocean’s ability to store carbon.

The Norwegian government is currently assessing the sites earmarked for mining to determine whether they contain vulnerable marine ecosystems, a term describing areas of seafloor covered in underwater forests formed by animals such as deep-sea sponges and cold-water corals.

An anemone on the seabed around the island of Svalbard, Norway. The deep sea is believed to be home to hundreds, maybe thousands, of animal and plant species that we know little about. (Image © Gavin Newman / Greenpeace)

If sites earmarked for mining are found to contain such ecosystems – a decision that could be made before the summer – then environmentalists will campaign to have them protected on the basis of their ecological importance.

Myhre of WWF Norway cautions that not enough is known about these areas to even assess the likely damage from mining. “This opening, of such a huge area without knowledge of the deep sea and the ecosystem functions of the deep sea … is the biggest disgrace I’ve seen in Norwegian ocean management in modern times,” he says.

Globally, opposition to deep-sea mining is also mounting. More than 750 scientists, from 44 countries, have voiced their concerns about the environmental impacts, which could include irreversible habitat loss, local extinctions and noise pollution. Sediment kicked up by mining could also enter the water column and negatively impact wildlife and commercial fisheries. At least 20 governments, including Brazil, Canada, the UK, France and Sweden, have called for a global pause in seabed mineral exploitation until further research is carried out, to assess the potential damage to marine life. Several large companies, including BMW, Google and Samsung, have vowed not to use materials sourced from deep-sea mining in their products.

Scientists and policymakers voice dismay

Including the deep-sea mining proposal, Norway’s recent policies on ocean resource exploitation have dismayed the experts who spent months advising the High-Level Panel for a Sustainable Ocean Economy on how to create a sustainable ocean economy.

“I’m pretty angry,” says Henrik Österblom, an environmental scientist at the Stockholm Resilience Centre in Sweden, an expert advisor to the panel. “We were super excited by this opportunity”, he says, but now with “one country working against all the advice they received … it feels like a total waste of time, like we are pawns in somebody else’s political game”.

Vidar Helgesen, who was Norway’s special envoy to the panel and one of its architects, alongside former Norwegian Prime Minister Erna Solberg, says there should have been a formal mechanism to track commitments.

Helgesen, who now works as executive director for the Nobel Foundation, says that he proposed having an independent body make regular assessments of national progress toward the 2025 goal. That suggestion wasn’t taken up by signatory states as some wanted a “softer” approach. A 2022 progress report entitled Tracking Blue reported few tangible outcomes for Norway. The next progress report is due in 2024. 

Others share Österblom’s dismay. “The response, unfortunately, has not been at all what I expected,” says Rashid Sumaila, director of the fisheries economics research unit at the University of British Columbia in Vancouver. “There was no commitment to follow through on the science”.

Peter Haugan, a fisheries scientist at the University of Bergen who chaired the panel’s expert group and co-authored the 2020 report, says he “shares the sense of disillusionment” especially with Norway’s recent decisions on oil, gas and mineral extraction.

The nation also falls short on taking steps to protect its own waters. “We really are a massive ocean nation,” says Myhre, referring to the fact that Norway’s ocean area is six times that of its landmass. However, less than 1% of its national waters are highly protected from industrial fishing and other extractive industries.

Elsewhere, Norway has been criticised by environmental groups for continuing to allow ocean dumping of mine waste – a practice outlawed in most other coastal states – and for its planned five-fold increase in salmon farming, an industry accused of high fish mortality and coastal pollution.

Overseas, Norway’s reputation has fared better. In September, it signed the High Seas Treaty, a new UN agreement to protect marine life in waters beyond national control.

Colette Wabniz, an expert adviser to the high-level ocean panel and a marine ecologist at Stanford University, says that Norway should also be commended for funding efforts to improve governance and equity of small-scale fisheries in Tanzania.

Sumaila shares this observation and says that Norway has invested in training many fisheries scientists in Africa. But, says Wabnitz, “Leadership is about walking the talk. It’s unfortunate that Norway is exemplary in some ways elsewhere, but it’s not more exemplary with its own policies at home.”

When asked about the discrepancy between Norway’s commitments as an ocean leader and its current policies, a spokesperson for the Ministry of Foreign Affairs said, by email: “Norway has a long tradition for prudent, responsible, and sustainable resource management”, which it intends to apply to both future oil and gas and mineral extraction.

The spokesperson said: “There will of course be challenges implementing the Ocean Panel’s ambitious agenda, and these challenges will vary between countries”, but added that Norway is fully committed to implementing the panel commitments, and to continuing its leadership role.

Not everyone is convinced, however, that Norway can marry these ambitions. “The things that we are doing now, especially opening the seabed to mining, is really putting the nail in the coffin for Norway as a responsible ocean nation,” says Myhre. “We have to change course, if we are to have sustainable ocean management.”

Olive Heffernan is a freelance science journalist who covers oceans and climate change. You can tweet her at @O_Heffernan and read her latest stories at www.oliveheffernan.com.

This article appears courtesy of China Dialogue Ocean and may be found in its original form here

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

WINTER SPORTS UNSUSTAINABLE

Let it snow: Ski industry to increasingly rely on artificial powder as climate warms

At Cypress Mountain ski resort, director of operations Jeremy Wentzel has been eagerly waiting for a chance to fire up the snow guns.

The Vancouver ski destination has manufactured more than 81 acres of artificial snow for skiers and boarders to enjoy since opening for the season Dec. 7, but much of that was lost to rainfall and warm temperatures later in the month.

With cooler weather in the forecast, however, Wentzel said a prime opportunity to pump out fresh powder could be just around the corner.

"We're just waiting for temperatures to fall slightly, because we're getting very, very close to a pretty significant snow-making window," Wentzel said.

"It has been a challenge this Christmas period. But temperatures do generally get there eventually, and then you get to put on display what having a robust snow-making system can do for you."


Artificial snow-making — which involves using machines, or "guns," to spray a mixture of water and compressed air that then freezes into snowflakes — has been used by the Canadian ski industry since its development in the 1950s.

But with climate change now posing an existential threat to an industry that depends on winter weather, snow-making is expected to become more important than ever.

A study by the University of Waterloo in partnership with the University of Innsbruck in Austria suggests snow-making production requirements by the Canadian ski industry will increase between 55 and 97 per cent by 2050, as climate change brings warmer winters and less natural snowfall.

In Ontario alone, for example, changing weather patterns due to climate change could shorten the average length of the ski season by up to 60 per cent.

Already, in an average winter, Canadian ski resorts produce an estimated 42 million cubic metres of machine-made snow.

But making snow is not as simple as hitting a switch and blasting flakes wherever and whenever you want them. For one, the weather must be cold enough for water to freeze, so all the snow-making capability in the world won't help in an extended plus-zero-degrees streak.

"There is a bit of a conundrum there," said Tara Lovell, spokeswoman for Ontario's Blue Mountain Resort, where an exceptionally mild December meant a very limited number of runs were open over the holiday season.

"I would say that our (snow-making) system hasn't been able to get up and running as much as we would have liked."

Snow-making is also expensive. It requires the installation of water pipes and pumphouses, hydrants and snow guns across significant swaths of terrain. This year, Blue Mountain committed to a "multi-year, multi-million-dollar" investment in snow-making infrastructure improvements that includes enhancing the system's automation capabilities, Lovell said.

These kinds of investments are meant to help the resort navigate increasingly erratic weather patterns, she added.

"Decades ago, you could kind of guarantee that winter will eventually come and we can make snow when it's here. But now, those snow-making windows can come in the middle of the night for just an hour here, an hour there," she said.

"So the more efficient our system is, the better off we are at making sure we're maximizing what we can, despite the volatility of Mother Nature."

But while snow-making may be the ski industry's answer to climate change, it has also been criticized by activists for contributing to it. The University of Waterloo study found artificial snow production at Canadian ski resorts consumes 478,000 megawatt-hours of electricity annually and an estimated 43.4 million cubic metres of water.

And as the demand for artificial snow grows, so too will ski resorts' demand for water and power. 

Waterloo professor Daniel Scott said the sustainability of snow-making varies greatly from location to location, depending on the source of the water and how green the local electricity grid is. 

He said the ski industry will need to ensure snow-making is being done in a responsible way — in particular, limiting negative impacts on downstream watersheds and conflict with other water users.

"(Snow-making) can be very unsustainable, or it can be very sustainable," Scott said. 

For her part, Lovell said she believes there are few industries more concerned about sustainability than the ski industry.

"I can’t forecast what is yet to come when it comes to climate change, but we do see those changes happening," she said.

"For our business to be sustainable, we need to make sure that we can continue to provide a snow-related product to our guests, despite what we're seeing and the trends that may be coming."

Back at Cypress Mountain in Vancouver, Wentzel said the resort likely would not have been open at all over the holidays if it didn't have its snow-making system. He said making snow is a way for the ski industry to take back some control from Mother Nature.

"Snow-making has been a huge investment priority for us," he said.

"It's a pretty big insurance policy for the mountain, because it allows you to manage your own fate, if you will."

This report by The Canadian Press was first published Jan. 5, 2024.

 

Unionized Indigo and Chapters workers facing uphill battles: union

A few years after several Indigo and Chapters stores unionized, one location is set to close as its union says the retailer has made things increasingly difficult for workers. 

Employees have picketed on multiple weekends outside the Chapters store at Kennedy Commons in Scarborough, Ont., after being told the location will close later this month.

The store is one of four Ontario locations that unionized with the 1006A chapter of the United Food and Commercial Workers union between September 2020 and August 2021. 

When the closure was announced in December, the employees were told they couldn’t transfer to other stores, even though that’s what has happened when other stores have closed, said Victoria Popov, an employee and union steward. 

"We were told none of us would be transferred, and that we could apply to any open position, like a member of the public," she said. 

“People were very upset."

The employees are being offered the legal minimum in terms of severance, said Popov. Some have been with the company for more than two decades and are nearing retirement age.

“It just seems so patently unfair to me," she said. 

In Ontario, employees qualify for severance pay if they’ve worked for an employer for five or more years, among other criteria. Those who qualify are entitled to payment based on their regular weekly wages and the number of years they’ve been employed. 

The union is asking Indigo to extend employee benefits for the workers, as well as improve severance payments and offer transfers, said Lesley Prince, director of organizing at UFCW Local 1006A. 

In an emailed statement responding to questions about the Scarborough closure and other unionized stores, Indigo spokesperson Melissa Perri said the company respects employees’ rights to seek representation but prefers to have a direct dialogue with workers. 

“Where employees are represented, we strive to establish a constructive and open dialogue with the union. Indigo always bargains in good faith with its unions and is committed to complying with the terms of the collective agreements,” she said. 

The lease at the Scarborough store expires at the end of February. As part of a regular review of the company’s real estate portfolio and after negotiations over the lease, Indigo decided to close the store due to poor financial performance, said Perri. 

Prince said the Scarborough store isn’t the only unionized location facing difficulties.

The Indigo store at Square One in Mississauga, Ont., has been in bargaining since May, but the company hasn’t responded meaningfully to workers’ main concerns, said Prince. The union in December held a strike vote that was 97 per cent in favour, she said. Another store, at Toronto's Yorkdale mall, is set to start bargaining this year. 

In May 2023, an application to decertify the Woodbridge, Ont., Chapters store was filed with the Ontario Labour Relations Board. An employee vote was held later the same month, but the ballot box has been sealed, said Prince, because the union is accusing Indigo of an employer-led decertification. 

Outside of Ontario, two stores unionized in October 2020 -- one in Montreal with a different union, while a Chapters store in Coquitlam, B.C., unionized with UFCW Local 247. 

In late 2021, the Coquitlam workers ratified their first contract after a challenging period of bargaining, said Charles Pratt, secretary treasurer of Local 247. 

Indigo then went on a hiring spree, bringing on a significant increase in workers at the store, he said. With a wider pool of workers, all employees, even the most senior, were getting far fewer hours. 

Over time, the employees who had fought for a union or voted for one left for jobs with better hours, said Pratt, and union support was watered down as more new workers were brought on. In September 2022, the store decertified.

In Indigo’s annual report for the 2023 financial year ended April 1, the company said most of its approximately 5,000 employees are not covered by a collective bargaining agreement.

If a significant number of employees were to become unionized, this could “have adverse consequences for the operational or financial conditions” at the unionized stores, the report states. 

UFCW has been seeing increasing interest from Indigo employees since 2020, when the pandemic turned many retail and service workers into essential workers but also raised concerns about safety on the front lines, said Debora De Angelis, Ontario regional director for UFCW and the co-ordinator for national strategic campaigns. 

But it’s difficult to organize in retail, she said. 

According to Statistics Canada, in November 2023, just over 12 per cent of workers in the wholesale and retail trade sector were covered by a union, barely higher than the same month pre-pandemic. 

“Unions in Canada have been trying to break into the low-wage retail sector for decades without much success,” said Brock University labour professor Larry Savage. 

“They need to contend with high turnover, workers being spread out over many workplaces, and retail employers who are committed to doing everything possible to keep unions out.” 

There are a number of legislative changes that could make it easier for workers to unionize or to bargain their first contract, said De Angelis, noting that some provinces, such as B.C., have better provisions than others. 

The impending closure of the Scarborough Chapters is disheartening, said Popov, but she’s proud of what she and her colleagues have done. She feels it’s part of a much bigger fight that’s playing out across North America at companies like Starbucks. 

“I think that the solution to this is unionizing more stores. It is very easy to target one, two or three stores. It is much harder to target 10 or 12 or 13 or an entire company,” she said. 

“I hope that this fight will continue. And I hope, ultimately, that in the future, people will look back at our tiny efforts, and they will have produced ripples that will have resulted in greater change.” 

This report by The Canadian Press was first published Jan. 9, 2024.