Carbon Match Weekly Summary on NZETS and further afield

June 22, 2012

Carbon prices have had a good old run at it over the last ten days, posting gains for 9 consecutive days before profit taking saw the market settle back overnight on Wednesday.  Spot CERs closed at $6.12.

A leaked version of a draft document which is expected to be tabled by the Commission in late July / early August was the main cause for excitement; we are talking in particular about the proposal to “backload” between 400 million and 1.2 billion credits, which according to analysis by Barcap could see 2013 EUA prices double to around the €16 mark, presumably dragging up CER prices dramatically with them, and a far cry from the current forward prices we are seeing for NZUs (2014 delivery offered at $7.50).

Having said that, it’s been another quiet week domestically.  We’re seeing increased interest in swaps but appetite for NZUs remains very low and we are a long way from compliance year end.

While the intent to intervene in the Eu carbon market is clear, we are obviously far from out of the woods.  Markets are likely to quieten down as the northern hemisphere approaches the sleepy summer holiday season and while Greece has a new Government that’s no guarantee of its survival in the euro zone.

Electro Seismic Survey Redefining Below Ground Exploration

June 2, 2012

In the pursuit of emissions reductions from combusting coal bed methane (CBM) and coal mine methane (CMM) under the UNFCCC clean development mechanism one needs a robust tool to locate the methane gas underground.

Finding such gas, was once a hit and miss affair, characterised by EITG South African Director of Operations Simon Baillieu, as a ‘visit to the casino’

Since environmentalists have become aware of practices such as ‘fracking’ and allegations of contamination of aquifers simply dropping a well without robust information has become increasingly unwise.

Recently EITG identified a tool that uses electro seismic technology simplifying the process of data gathering. The resulting processed data provides higher resolution and more detailed results. A suitable analogy is that of an MRI versus an X-ray. Sophisticated software and superior signal data replaces much of the effort that was previously involved in the investigative process whilst also achieving improved results.

The field data collection system consists of a trailer based rig with a weight drop machine. The sensor array is two probes located immediately adjacent to the rig. This simplified approach requires less staff of lower qualification to operate. Data collected can be batched or immediately emailed via cellular data connection to base for processing. A large area can be surveyed quickly and cost effectively. Inserting the small light weight rig via helicopter or small tractor means minimal impact on the environment. Further, the procedure is unobtrusive with such a small environmental footprint, in most jurisdictions no formal consent from authorities is required to perform the survey. Surveys can be completed in sensitive areas with little or no environmental impact.

The resulting data is processed on computers using complex software algorithms that can finger print the underlying strata. These algorithms are highly configurable and can ‘learn’, further enhancing the results while all data processing is completed off site.

The underlying concept has been known since the 1950s and scientifically documented in the 1960s. It was and is still widely used for building foundation work in some countries and for locating water just below ground. Recent breakthroughs by engineers have enhanced the technology and it now provides data at depths up to 6km

The output provides 3D models that identify primary and secondary permeability of rock structures, the later via identifying horizontal fractures up to an angle of 30 degrees. The technology is so sensitive that it can be used to distinguish between fresh and saline aquifers.

As such this is an ideal tool for location likely sources of CBM and CMM in underground structures.

EITG teams up with South African GE Agent

June 2, 2012

EITG has signed an agreement with Agaricus of South Africa to assist with supply of equipment for destruction of methane in Africa for EITG and Agaricus clients. The parties have agreed to work together to assist their respective clients in meeting their needs in the CDM and gas combustion space