Biden's Energy Policy: Something for Nobody

Imagine being a Biden White House aide tasked with writing this week’s State of the Union address. Having spent weeks crafting an opus of appeals to Congress over Biden’s “climate” agenda, reality barges in and scrambles the planned approach. After all, squandering the inheritance of energy dominance, and ushering in a U.S. equivalent of Germany’s disastrous energy policies here — with a reliance on China for rare earth-mineral dependent "renewables" and  increased reliance on Russian oil — has gone from being weirdly out-of-touch with Americans to utterly disconnected from reality. What to do?

Unfortunately, adjusting to events and scrapping old plans until better times hopefully return was not the option chosen. Acknowledging how policy mistakes have brought the world to this week’s deadly and further-perilous point was therefore plainly out of the question.  Instead, Tuesday night’s speech, after opening with supportive words for Ukraine itself, was otherwise oblivious to the fact of Western Europe now lying prostrate — cornered by its own obsession with Green New Deal policies (called “Net-Zero” over there) into near-total reliance on intermittent energy and unreliable foreign sources of traditional hydrocarbons.

Germany: the old ways are best.

For a few days the line coming from Europe and the Biden administration was a unified one, that the “Ukraine turmoil” shows “fossil fuels” are clearly bad and it’s time to go harder on the windmills-and-sun-catcher fantasy. Apparently, the world only just recently started down that path, and has been insufficiently committed to it or something.

Germany has spent the most time and money pushing the "green" agenda and, as is now well-known, is the worst off among its neighbors for the effort from both economic and national security perspectives. Encouragingly, over the weekend Germany made several “about-face” announcements giving hope that maybe the dogmatic slow-learners in government there are somewhat teachable. A Monday Wall Street Journal story noted, “Germany’s Climate Left Gets Serious: Greens in Berlin start to make responsible energy trade-offs. Is President Biden listening?”.

German Chancellor Olaf Scholz on Sunday made energy a central plank in his overhaul of his country’s foreign policy. In response, leaders of the Green Party in his coalition government have offered the political left around the world a lesson in how to translate lofty ideals into responsible governance. Germany’s overreliance on Russian oil and natural gas has long been a dangerous vulnerability, which Berlin can no longer ignore after Vladimir Putin’s invasion of Ukraine.

That said, as of now Germany—spooked by Japan's Fukushima accident a decade ago— still plans to shut down three nuclear power plants this year, in favor of more reliance on Putin’s gas. Dogma and donors are cruel mistresses.

Back here, pre-speech trial balloons told us that, because real energy infrastructure “would take years,” that’s a no-go. And Tuesday night, we heard the now-ritual, “We’ll build a national network of 500,000 electric vehicle charging stations," and the apparently immediate solution of “double America’s clean energy production in solar, wind and so much more [and] lower the price of electric vehicles, saving you another $80 a month that you’ll never have to pay at the pump.”

That computer won't run on plant fumes, lady.

In normal times, the most galling line might have been the promise that more Green New Deal-style policies will “cut energy costs for families an average of $500 a year by combating climate change.” After years of confessions that energy costs will have to skyrocket “necessarily,” and that “climate change needs higher energy bills,” joining headlines blaring that “Energy bills will have to rise sharply to avoid climate crisis, says IMF,” this cynical gamble on public amnesia showed that selling an ideological agenda is what matters.

White House press secretary Jen Psaki previewed this business-as-usual approach on ABC’s "This Week." A mere eight of the past nine presidents have used the State of the Union speech to push expensive governmental interventions in the name of a renewable energy agenda to replace what works and is found underneath American soil in abundance (the virtues of which Trump deviated from the norm to extoll). Tuesday made that 9 of 10.

Like the Europeans now reaping the climate-policy whirlwind, President Biden and his party are too heavily invested in the matter with their base and (like a growing flock of Republicans) with their donors to let go.

Biden’s use of the State of the Union reflected an unnerving resistance to change course when certain inevitable consequences of the “green” agenda are coming home to roost. Demanding more of the same last night, faster, was simply irresponsible. Failing to exploit one’s own, plentiful resources in fealty to the Green Blob has proved a “lesson in energy masochism” and Russian energy blackmail.

Western Europeans for years have complained that the U.S. was too slow to follow their examples on “climate” and energy policy. Biden's speech was a plea for ideological priorities. Existing law allows Biden to resume energy policies actually grounded in real-world experience. The world should hope that in coming weeks the administration joins, yes, the German Left to acknowledge the world we live in, chucks the green dogma, and does what’s really best for the planet.

About Those 'Green Energy' Unicorns...

You think those baby unicorns grow on trees? Better think again. "Green" energy, in fact, comes with a very high price tag. as this report from the Manhattan Institute makes clear:

As policymakers have shifted focus from pandemic challenges to economic recovery, infrastructure plans are once more being actively discussed, including those relating to energy. Green energy advocates are doubling down on pressure to continue, or even increase, the use of wind, solar power, and electric cars. Left out of the discussion is any serious consideration of the broad environmental and supply-chain implications of renewable energy.

As I explored in a previous paper, “The New Energy Economy: An Exercise in Magical Thinking,”[1] many enthusiasts believe things that are not possible when it comes to the physics of fueling society, not least the magical belief that “clean-tech” energy can echo the velocity of the progress of digital technologies. It cannot.

This paper turns to a different reality: all energy-producing machinery must be fabricated from materials extracted from the earth. No energy system, in short, is actually “renewable,” since all machines require the continual mining and processing of millions of tons of primary materials and the disposal of hardware that inevitably wears out. Compared with hydrocarbons, green machines entail, on average, a 10-fold increase in the quantities of materials extracted and processed to produce the same amount of energy.

Here's the paper by Mark P. Mills: "Mines, Minerals and 'Green' Energy: A Reality Check."

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It never seems to occur to the Reality-Based Community that in the real world one must think past "A, therefore B" to include many others letters of the alphabet as the variables pile up. In other words, if you think that by plugging your electric vehicle into a handy wall socket you've just put the fossil fuel and ancillary industries out of business while otherwise continuing your lifestyle and saving money to boot, think again.

As Mills points out, among the reality of "green energy" are:

  • Building wind turbines and solar panels to generate electricity, as well as batteries to fuel electric vehicles, requires, on average, more than 10 times the quantity of materials, compared with building machines using hydrocarbons to deliver the same amount of energy to society.
  • A single electric car contains more cobalt than 1,000 smartphone batteries; the blades on a single wind turbine have more plastic than 5 million smartphones; and a solar array that can power one data center uses more glass than 50 million phones.
  • Replacing hydrocarbons with green machines under current plans—never mind aspirations for far greater expansion—will vastly increase the mining of various critical minerals around the world. For example, a single electric car battery weighing 1,000 pounds requires extracting and processing some 500,000 pounds of materials. Averaged over a battery’s life, each mile of driving an electric car “consumes” five pounds of earth. Using an internal combustion engine consumes about 0.2 pounds of liquids per mile.
  • Oil, natural gas, and coal are needed to produce the concrete, steel, plastics, and purified minerals used to build green machines. The energy equivalent of 100 barrels of oil is used in the processes to fabricate a single battery that can store the equivalent of one barrel of oil.
  • By 2050, with current plans, the quantity of worn-out solar panels—much of it nonrecyclable—will constitute double the tonnage of all today’s global plastic waste, along with over 3 million tons per year of unrecyclable plastics from worn-out wind turbine blades. By 2030, more than 10 million tons per year of batteries will become garbage.

Yeah, well, surely they've thought this whole "green" thing, right? Sadly, no. For not only will the "green movement" be hideously expensive and result in no appreciably better ecological ends, the extraction of its necessary materials -- for even unicorns must come from somewhere -- will also cost more and require even more pollution than current fossil fuels do.

For example, replacing the energy output from a single 100-MW natural gas-fired turbine, itself about the size of a residential house (producing enough electricity for 75,000 homes), requires at least 20 wind turbines, each one about the size of the Washington Monument, occupying some 10 square miles of land.[4]

Building those wind machines consumes enormous quantities of conventional materials, including concrete, steel, and fiberglass, along with less common materials, including “rare earth” elements such as dysprosium. A World Bank study noted what every mining engineer knows: “[T]echnologies assumed to populate the clean energy shift … are in fact significantly more material intensive in their composition than current traditional fossil-fuel-based energy supply systems.”[5]

Nothing comes from nothing, and the rare-earth elements and other necessities to build "green energy" machines have to be extracted, just like fossil fuels, only far more expensively. "Wind farms come close to matching hydro dams in material consumption, and solar farms outstrip both," write Mills. "In all three cases, the largest share of the tonnage is found in conventional materials like concrete, steel, and glass. Compared with a natural gas power plant, all three require at least 10 times as many total tons mined, moved, and converted into machines to deliver the same quantity of energy."

Please click on the link at the top to read much, much more on the subject. The short version is those who harbor of prelapsarian vision of "clean and green" energy are not only fooling themselves, but are putting the rest of us at risk while indulging their neo-totalitarian fantasies of streets whose only traffic will be that of little princesses on unicorns.

Instead, as Mills concludes, the future really is going to be all of the above -- minus the unicorns, of course:

Even without subsidies, mandates, and policies that favor green energy, the future for both America and the rest of the world will see many more wind and solar farms and many more electric cars. That will happen precisely because those technologies have matured enough to play significant roles. And given the magnitude of pent-up global demand for energy and energy-using machines and services—especially after the world struggles out of recession—it is a truth, not a slogan, that the world will need “all of the above” in energy supplies.

These realities, combined with the immutable reality that green machines require extraordinary quantities of energy minerals, can perhaps form a common intersection of interests that support an expansion in domestic mining. That would be, after all, of strategic and economic benefit to the United States, regardless of the debates over whether green energy is a replacement for hydrocarbons, which it is not, or a significant new and valuable energy sector, which it most assuredly is.

That Big Green won't even hear of it tells you all you need to know about their real motives.

'The Hidden Costs of Net Zero'

In last week’s column I argued that in dealing with the threats of climate change, our best approach would be to forget labels like "climate denialism” and “climate alarmism,” make a fair accounting of the problems, and set about tackling them practically. When I advocated this approach of “climate practicality,” I was thinking in Big Picture terms: How best should we allocate scarce resources between adapting to climate change and seeking to mitigate it, for instance? Or between generating energy mainly from fossil fuels, as now, or from “renewables,” or from going nuclear? Where will our money get the best results?

Answering those Big Picture questions is obviously necessary, indeed unavoidable, but it’s also very difficult to answer them well, i.e, convincingly, because they contain so many variables. It’s somewhat easier (though still hard) to examine the practicality of specific policies from the standpoint not only of governments which propose and implement them but also of the ordinary citizens who have to live with their impact.

That’s done with deep practical expertise and occasional dry wit in a new monograph from the Global Warming Policy Foundation titled ReWiring the UK: the Hidden Costs of Net Zero by Mike Travers, a distinguished engineer with wide experience in that most practical of disciplines.

I am sure every one of us in the UK supports cutting waste, not polluting the oceans with plastic, collecting our rubbish (though people are still throwing tons of waste out of car windows), reducing discharges of all types into our fragile atmosphere and still maintaining a reasonable lifestyle. To do this we need to plan, engineer and build in a sensible way. What we cannot afford to do is inflate electricity prices and other costs: this will simply result in manufacturing industry leaving the country and the export of our carbon dioxide emissions.

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Travers starts with the problem, which is that electricity prices have been rising sharply in the U.K.: “[B]usinesses and consumers have been facing steadily increasing electricity bills for the last 12 years. Average domestic prices have risen from 6p to 16p per unit. That is more than 150 percent in twelve years, faster than any other commodity. This is partly the result of poor planning of the system.”

And why is that? Travers first gives vent to an understandable professional pique that “[e]ngineers have long since lost control of the electrical supply, and the regulators, accountants, and lawyers who now hold sway have conspired to prevent sensible improvements to the system.”

His second explanation, however, goes to the nub of the problem, which is that rising electricity prices stem mainly from government policies to “decarbonize the economy’” (i.e. the hidden costs of the monograph’s title), as the country switches from gas turbines to the much more expensive wind turbines to generate electcicity and move towards net zero carbon emissions.

As we head towards a fully decarbonised grid, the expense will become truly astronomical. We even have to pay windfarms to switch off. These so-called ‘constraint payments’ reached £140 million in 2019.

Rising electricity prices from decarbonization are a major problem, especially so when consumers are facing harder times as the cumulative impact of Covid-19 and the lockdowns kicks in, but they are far from the only negative results. For the U.K. government, though headed by an easy-going optimististic prime minister in Boris Johnson, is committed to requiring ordinary Brits to make major changes in their life-styles that will mean imposing heavier costs on them as both consumers, electricity users, and taxpayers. For instance, the government has already announced that it is making a transition to electric cars compulsory by 2035—and that regulation will include hybrid cars. Nor is it likely to be only such regulation. Brits will also be required to install in their homes such other devices as heat pumps and electric vehicle charging points.

The cost of installing EV charging points alone will be a considerable one. Travers estimates that it will be of the order of 31 billion pounds. But that’s small beer compared to the overall losses from the installation and use of all the additional electric devices needed for decarbonization (italics mine):

The extra demand for electricity will overwhelm most domestic fuses, thus requiring homeowners to install new ones, as well as circuit-breakers and new distribution boards. Most will also have to rewire between their main fuse and the distribution network. In urban areas, where most electrical cabling is underground, this will involve paying for a trench to be dug between the home and the feeder circuits in the street. In addition, increased demand along a street will mean that the distribution network will need to be upgraded too. This will involve installing larger cables and replacing distribution transformers with larger ones. Most urban streets will need to be dug up. The cost to the country of rewiring alone will probably exceed £200 billion, or over £7,000 per household. This figure excludes the cost of new equipment, such as EV chargers, heat pumps and electric showers.

That’s the total impact on householders. It’s alarming. But the details of how many of these centrally-imposed regulations will impact the individual householder is where Travers shines. Here he is, for instance, on heat pumps:

The best alternative is a ground-source heat pump (GSHP), which extracts heat from the earth, using a network of buried pipes. However, that requires a lot of space, so they are really only an option for people who own significant plots of land or can afford the alternative of drilling a borehole. The total cost in a new house for installing a GSHP is likely to be £18,000, or four times the present cost of an oil or gas heating system. The alternative is an air-source heat pump (ASHP), which might cost £10,000, gives energy gains rather less than GSHPs, and suffers from major reductions in efficiency in cold weather.

Even an attentive reader of the serious press would not guess one tenth of the upheavals and cost additions that electric vehicles and heat pumps alone by themselves are likely to cause the Brits—and thus to government ministers when voters realize that what these high-sounding moral principles will mean in practice.

If Ministers pay heed to Travers on the costs and practicality of their policies, they will reconsider de-carbonization and look instead at going nuclear or choosing adaptation over mitigation. But practicality and government live increasingly separate lives—the former in this world, the latter in Utopia. And a reconciliation between them is probably a catastrophe away.