Britain's finest export could soon be powering our cars
Euan Ferguson The Observer, Sunday 22 August 2010
Is there no bad news about whisky? Yes, admitted, it can lead you to odd places – specifically to a culvert off the M62 at dawn (twice, since you ask), wondering why your trousers are smouldering and there's a tired rodent in your mouth – but, in absolute general, it's our finest export, earns billions, its production takes place in the most uncontainably picturesque vistas, carried out by that perfect mix of wise, bearded geek-trolls and happy red-faced giants.
And now it's going to power our cars.
Scientists at Edinburgh's Napier University have spent the last three years looking at the possibility of using whisky by-products as biofuel. The bad news is that they had to go through three years of enduring the obvious jokes about how hard their job was. Every Friday night. In every pub.
The great news is that it has worked. No modifications to car engines need take place. The scientists have successfully worked out a way of easily harvesting biobutanol (something like a grabzillion times more effective and environment-friendly than ethanol, the stuff Americans pour into their petrol to make their drivers even more smelly and angry) from the "throwaway" by-products of the whisky process – basically, the undrinkable stuff, unless you like Carlsberg Special.
This means that a tiny project, with a budget of only £260,000, has quite possibly changed Britain's fuel needs. All we need to do, therefore, is drink much more neat Laphroaig in order to drive further.
Saturday, 21 August 2010
China To Pump Billions Into Hybrid/Electric Car Development
Jon Vandervelde August 19th, 2010
By Jon Vandervelde
August 19th, 2010 China has announced a state-run plan to put 1.5 million electric and hybrid vehicles on the road over the next three years. State-run media reports that Beijing will invest 15 billion dollars in this effort, which will involve an already assembled coalition of 16 large, state-owned ventures including military contractors, aviation companies, power companies and automakers such as Dongfeng Auto and the China FAW Group. It's difficult to say what this means for foreign companies such as General Motors, which recently inked an agreement for a joint-ventures with Chinese automaker S.A.I.C. to develop related technologies,but probably nothing good. China's more or less openly nationalistic industrial policies are notorious for making it difficult to penetrate the country's markets, while at the same time sucking as much technical knowledge as possible from corporations making the attempt. As Zhong Shi, editor of the Chinese publication China Automotive Review recently told the Global Times, "...Though lots of foreign firms launched technology agreements, there is no precedent of successful technology exchange in China's auto industry,". [NYT]
Enlarge PhotoChina has announced a state-run plan to put 1.5 million electric and hybrid vehicles on the road over the next three years. State-run media reports that Beijing will invest 15 billion dollars in this effort, which will involve an already assembled coalition of 16 large, state-owned ventures including military contractors, aviation companies, power companies and automakers such as Dongfeng Auto and the China FAW Group.
It's difficult to say what this means for foreign companies such as General Motors, which recently inked an agreement for a joint-ventures with Chinese automaker S.A.I.C. to develop related technologies,but probably nothing good. China's more or less openly nationalistic industrial policies are notorious for making it difficult to penetrate the country's markets, while at the same time sucking as much technical knowledge as possible from corporations making the attempt.
As Zhong Shi, editor of the Chinese publication China Automotive Review recently told the Global Times, "...Though lots of foreign firms launched technology agreements, there is no precedent of successful technology exchange in China's auto industry,".
By Jon Vandervelde
August 19th, 2010 China has announced a state-run plan to put 1.5 million electric and hybrid vehicles on the road over the next three years. State-run media reports that Beijing will invest 15 billion dollars in this effort, which will involve an already assembled coalition of 16 large, state-owned ventures including military contractors, aviation companies, power companies and automakers such as Dongfeng Auto and the China FAW Group. It's difficult to say what this means for foreign companies such as General Motors, which recently inked an agreement for a joint-ventures with Chinese automaker S.A.I.C. to develop related technologies,but probably nothing good. China's more or less openly nationalistic industrial policies are notorious for making it difficult to penetrate the country's markets, while at the same time sucking as much technical knowledge as possible from corporations making the attempt. As Zhong Shi, editor of the Chinese publication China Automotive Review recently told the Global Times, "...Though lots of foreign firms launched technology agreements, there is no precedent of successful technology exchange in China's auto industry,". [NYT]
Enlarge PhotoChina has announced a state-run plan to put 1.5 million electric and hybrid vehicles on the road over the next three years. State-run media reports that Beijing will invest 15 billion dollars in this effort, which will involve an already assembled coalition of 16 large, state-owned ventures including military contractors, aviation companies, power companies and automakers such as Dongfeng Auto and the China FAW Group.
It's difficult to say what this means for foreign companies such as General Motors, which recently inked an agreement for a joint-ventures with Chinese automaker S.A.I.C. to develop related technologies,but probably nothing good. China's more or less openly nationalistic industrial policies are notorious for making it difficult to penetrate the country's markets, while at the same time sucking as much technical knowledge as possible from corporations making the attempt.
As Zhong Shi, editor of the Chinese publication China Automotive Review recently told the Global Times, "...Though lots of foreign firms launched technology agreements, there is no precedent of successful technology exchange in China's auto industry,".
Brian Myerson blocks D1 Oils takeover by Mission NewEnergy
• Controversial investor uses 27% stake to defy board
• Brian Myerson previously lobbied to sell off biofuels firm
David Teather guardian.co.uk, Tuesday 17 August 2010 20.20 BST
The froideur between Brian Myerson, the controversial financier, and the board of D1 Oils dropped another few degrees today after he blocked a potential takeover of the ailing business by rival Mission NewEnergy.
In a statement, Mission said the deal between the two biofuel companies had the support of at least 41% of D1's shareholders as well as the backing of the D1 board. But it said the takeover would not go ahead because they had failed to secure the support of Principle Capital, where Myerson is chairman and which holds a 27% stake. A Principle spokesman said: "Based on the value of Mission's bid and its business plan, we are not interested in accepting their offer."
But one observer who had backed the bid said he failed to understand Myerson's motivation – he had previously been pressing the D1 board to either sell the company or break it up. "Maybe he thought a better alternative was simply winding the company up and getting some cash back," he said. "But I don't really understand. Sometimes these things can be emotive."
Shares in D1 fell 12% to 4.68p after the announcement.
Myerson was voted off as chairman of D1 in March after failing to persuade the business to merge with Principle Energy, an African sugar cane ethanol firm controlled by Principle. The activist investor then called an emergency shareholder meeting last month in a failed attempt to oust the board.
D1 is an alternative energy crop company focused on India. It is developing jatropha, a tropical oilseed-bearing plant, into a sustainable energy crop for use on marginal land not suitable for food. But the company has scaled back its ambitions over the past two years and is no longer refining, focusing instead on research and development, and jatropha plantations. A period as a joint venture with BP ended last year as BP began to shed some of its alternative energy investments.
Australia-based Mission is one of the world's largest jatropha firms, with access to more than 100,000 acres of land planted with the oil crop.
Myerson was last month given a "cold shoulder" sanction by the Takeover Panel, banning bankers and other advisers from working with him in a takeover situation for three years. It is understood that D1 has taken legal advice to establish whether that cold shoulder has been breached, but concluded they had little recourse.
South African-born Myerson, 51, who has been involved in a string of corporate bust-ups, has threatened to take the Takeover Panel to the European courts over its ruling. Its action was over his alleged breach of the City code by acting in concert with another party while buying up shares in the firm PCIT. He called the ruling "wholly wrong and misguided".
His strategy over many years has been to target companies thought to be underperforming and then force change to get the share price up, putting him in conflict with firms including Aquascutum, Liberty, Scholl, Pilkington and Signet.
A spokesman for D1 said the company was still in discussions with other potential buyers.
• Brian Myerson previously lobbied to sell off biofuels firm
David Teather guardian.co.uk, Tuesday 17 August 2010 20.20 BST
The froideur between Brian Myerson, the controversial financier, and the board of D1 Oils dropped another few degrees today after he blocked a potential takeover of the ailing business by rival Mission NewEnergy.
In a statement, Mission said the deal between the two biofuel companies had the support of at least 41% of D1's shareholders as well as the backing of the D1 board. But it said the takeover would not go ahead because they had failed to secure the support of Principle Capital, where Myerson is chairman and which holds a 27% stake. A Principle spokesman said: "Based on the value of Mission's bid and its business plan, we are not interested in accepting their offer."
But one observer who had backed the bid said he failed to understand Myerson's motivation – he had previously been pressing the D1 board to either sell the company or break it up. "Maybe he thought a better alternative was simply winding the company up and getting some cash back," he said. "But I don't really understand. Sometimes these things can be emotive."
Shares in D1 fell 12% to 4.68p after the announcement.
Myerson was voted off as chairman of D1 in March after failing to persuade the business to merge with Principle Energy, an African sugar cane ethanol firm controlled by Principle. The activist investor then called an emergency shareholder meeting last month in a failed attempt to oust the board.
D1 is an alternative energy crop company focused on India. It is developing jatropha, a tropical oilseed-bearing plant, into a sustainable energy crop for use on marginal land not suitable for food. But the company has scaled back its ambitions over the past two years and is no longer refining, focusing instead on research and development, and jatropha plantations. A period as a joint venture with BP ended last year as BP began to shed some of its alternative energy investments.
Australia-based Mission is one of the world's largest jatropha firms, with access to more than 100,000 acres of land planted with the oil crop.
Myerson was last month given a "cold shoulder" sanction by the Takeover Panel, banning bankers and other advisers from working with him in a takeover situation for three years. It is understood that D1 has taken legal advice to establish whether that cold shoulder has been breached, but concluded they had little recourse.
South African-born Myerson, 51, who has been involved in a string of corporate bust-ups, has threatened to take the Takeover Panel to the European courts over its ruling. Its action was over his alleged breach of the City code by acting in concert with another party while buying up shares in the firm PCIT. He called the ruling "wholly wrong and misguided".
His strategy over many years has been to target companies thought to be underperforming and then force change to get the share price up, putting him in conflict with firms including Aquascutum, Liberty, Scholl, Pilkington and Signet.
A spokesman for D1 said the company was still in discussions with other potential buyers.
Rising temperatures reducing ability of plants to absorb carbon, study warns
Research shows warming over past decade caused droughts that reduced number of plants available to soak up carbon dioxide
Alok Jha guardian.co.uk, Thursday 19 August 2010 19.19 BST
Rising temperatures in the past decade have reduced the ability of the world's plants to soak up carbon from the atmosphere, scientists said today.
Large-scale droughts have wiped out plants that would have otherwise absorbed an amount of carbon equivalent to Britain's annual man-made greenhouse gas emissions.
Scientists measure the amount of atmospheric carbon dioxide absorbed by plants and turned into biomass as a quantity known as the net primary production. NPP increased from 1982 to 1999 as temperatures rose and there was more solar radiation.
But the period from 2000 to 2009 reverses that trend – surprising some scientists. Maosheng Zhao and Steven Running of the University of Montana estimate that there has been a global reduction in NPP of 0.55 gigatonnes (Gt). In comparison, the UK's contribution to annual worldwide carbon dioxide emissions was 0.56Gt in 2007, while global aviation industry made up around 0.88Gt (3%) of the world total of 29.3Gt that year, according to UN data.
The researchers used data from the moderate resolution imaging spectroradiometer (Modis) on board Nasa's Terra satellite, combined with global climate data to measure the change in global NPP over the past decade.
"The past decade has been the warmest since instrumental measurements began, which could imply continued increases in NPP," wrote Zhao and Running in the journal Science.
But instead of helping plants grow, these rising temperatures instead caused droughts and water stresses, particularly in the southern hemisphere and in rainforests, which contain most of the world's plant biomass. The growth there has been curtailed by lack of water and increased respiration, which returns carbon to the atmosphere. These problems counteracted any increases in NPP seen at the high latitudes and elevations in the northern hemisphere.
Reduced plant matter not only reduces the world's natural ability to manage carbon dioxide in the atmosphere but could also lead to problems with growing more crops to feed rising populations or make sustainable biofuels.
"Under a changing climate, severe regional droughts have become more frequent, a trend expected to continue for the foreseeable future," said the researchers. "The warming-associated heat and drought not only decrease NPP, but also may trigger many more ecosystem disturbances, releasing carbon to the atmosphere. Reduced NPP potentially threatens global food security and future biofuel production and weakens the terrestrial carbon sink."
The researchers conclude that further monitoring will be needed to confirm whether the decrease in NPP they have observed in the past decade is an anomaly or whether it signals a turning point to a future decline in the world's ability to sequester carbon dioxide.
• This article was amended on 20 August 2010. The original referred to carbon dioxide as CO2 and CO². This has been corrected.
Alok Jha guardian.co.uk, Thursday 19 August 2010 19.19 BST
Rising temperatures in the past decade have reduced the ability of the world's plants to soak up carbon from the atmosphere, scientists said today.
Large-scale droughts have wiped out plants that would have otherwise absorbed an amount of carbon equivalent to Britain's annual man-made greenhouse gas emissions.
Scientists measure the amount of atmospheric carbon dioxide absorbed by plants and turned into biomass as a quantity known as the net primary production. NPP increased from 1982 to 1999 as temperatures rose and there was more solar radiation.
But the period from 2000 to 2009 reverses that trend – surprising some scientists. Maosheng Zhao and Steven Running of the University of Montana estimate that there has been a global reduction in NPP of 0.55 gigatonnes (Gt). In comparison, the UK's contribution to annual worldwide carbon dioxide emissions was 0.56Gt in 2007, while global aviation industry made up around 0.88Gt (3%) of the world total of 29.3Gt that year, according to UN data.
The researchers used data from the moderate resolution imaging spectroradiometer (Modis) on board Nasa's Terra satellite, combined with global climate data to measure the change in global NPP over the past decade.
"The past decade has been the warmest since instrumental measurements began, which could imply continued increases in NPP," wrote Zhao and Running in the journal Science.
But instead of helping plants grow, these rising temperatures instead caused droughts and water stresses, particularly in the southern hemisphere and in rainforests, which contain most of the world's plant biomass. The growth there has been curtailed by lack of water and increased respiration, which returns carbon to the atmosphere. These problems counteracted any increases in NPP seen at the high latitudes and elevations in the northern hemisphere.
Reduced plant matter not only reduces the world's natural ability to manage carbon dioxide in the atmosphere but could also lead to problems with growing more crops to feed rising populations or make sustainable biofuels.
"Under a changing climate, severe regional droughts have become more frequent, a trend expected to continue for the foreseeable future," said the researchers. "The warming-associated heat and drought not only decrease NPP, but also may trigger many more ecosystem disturbances, releasing carbon to the atmosphere. Reduced NPP potentially threatens global food security and future biofuel production and weakens the terrestrial carbon sink."
The researchers conclude that further monitoring will be needed to confirm whether the decrease in NPP they have observed in the past decade is an anomaly or whether it signals a turning point to a future decline in the world's ability to sequester carbon dioxide.
• This article was amended on 20 August 2010. The original referred to carbon dioxide as CO2 and CO². This has been corrected.
US CCS plan slated for lack of ambition
19 August 2010
A US interagency blueprint for commercial-scale deployment of carbon capture and storage (CCS) argues that challenging obstacles can be overcome, such as the lack of a national carbon price and questions over long-term liability.
However, the plan is not decisive or ambitious enough to succeed, according to the Clean Air Task Force (CATF).
In February, US President Barack Obama established an interagency task force to speed the commercial development and deployment of CCS technologies. The task force, co-chaired by the US Department of Energy (DOE) and the Environmental Protection Agency (EPA), last week proposed a plan to overcome the barriers to the widespread, cost-effective deployment of CCS within 10 years, with a goal of bringing five to 10 commercial demonstration projects online by 2016.
CCS projects face economic challenges related to climate policy uncertainty, first-of-a-kind technology risks and the current high cost of CCS relative to other technologies, according to the report. In the electricity sector, estimates of the incremental costs of new coal-fired plants with CCS relative to new conventional coal-fired plants typically range from $60 to $95 per tonne of carbon dioxide avoided.
“Without a carbon price and appropriate financial incentives for new technologies, there is no stable framework for investment in low-carbon technologies such as CCS,” the report said.
The DOE is pursuing multiple demonstration projects using close to $4 billion in federal funds, matched by more than $7 billion in private investments. But that investment is far short of the amount needed to fully deploy CCS, according to advocacy group CATF. In comparison, the wind sector has received far greater support from the federal government, with $6 billion in tax credits in 2010 alone.
In the absence of federal legislation, the administration should require CCS on all coal and natural gas power plants under the provisions of the Clean Air Act and support a $20 billion pioneer programme through 2020 to fully commercialise CCS technology, according to CATF.
“We are disappointed that the plan does not call for decisive action on CCS, at a time when bold thinking is required to lay out a plan that will transition this country from uncontrolled greenhouse gas emissions from coal and natural gas-fired power plants to a near zero-carbon future,” said John Thompson, head of the coal transition project at CATF. “Instead of calling for requirements to drive technology and create incentives to lower the costs of low-carbon technologies, the administration has only recommended greater interagency cooperation on a patchwork of existing relatively modest incentives.
Questions over the long-term liability associated with CCS projects were also identified by the report as a key barrier to full-fledged deployment. Open-ended federal indemnification, meaning CCS firms would not be held financially responsible for potentially costly incidents such as the release of a hazardous substance during the CCS process, is not a viable option.
But the task force suggested four potential alternatives: relying on existing state and federal laws that define or allocate liability, placing limits on claims, creating an industry-financed trust fund to support CCS activities and compensate parties for losses or damages that occur after site closure, and transfer of liability to the federal government after site closure with certain contingencies. The federal agencies will continue to evaluate these options and present recommendations by late 2011.
Gloria Gonzalez
A US interagency blueprint for commercial-scale deployment of carbon capture and storage (CCS) argues that challenging obstacles can be overcome, such as the lack of a national carbon price and questions over long-term liability.
However, the plan is not decisive or ambitious enough to succeed, according to the Clean Air Task Force (CATF).
In February, US President Barack Obama established an interagency task force to speed the commercial development and deployment of CCS technologies. The task force, co-chaired by the US Department of Energy (DOE) and the Environmental Protection Agency (EPA), last week proposed a plan to overcome the barriers to the widespread, cost-effective deployment of CCS within 10 years, with a goal of bringing five to 10 commercial demonstration projects online by 2016.
CCS projects face economic challenges related to climate policy uncertainty, first-of-a-kind technology risks and the current high cost of CCS relative to other technologies, according to the report. In the electricity sector, estimates of the incremental costs of new coal-fired plants with CCS relative to new conventional coal-fired plants typically range from $60 to $95 per tonne of carbon dioxide avoided.
“Without a carbon price and appropriate financial incentives for new technologies, there is no stable framework for investment in low-carbon technologies such as CCS,” the report said.
The DOE is pursuing multiple demonstration projects using close to $4 billion in federal funds, matched by more than $7 billion in private investments. But that investment is far short of the amount needed to fully deploy CCS, according to advocacy group CATF. In comparison, the wind sector has received far greater support from the federal government, with $6 billion in tax credits in 2010 alone.
In the absence of federal legislation, the administration should require CCS on all coal and natural gas power plants under the provisions of the Clean Air Act and support a $20 billion pioneer programme through 2020 to fully commercialise CCS technology, according to CATF.
“We are disappointed that the plan does not call for decisive action on CCS, at a time when bold thinking is required to lay out a plan that will transition this country from uncontrolled greenhouse gas emissions from coal and natural gas-fired power plants to a near zero-carbon future,” said John Thompson, head of the coal transition project at CATF. “Instead of calling for requirements to drive technology and create incentives to lower the costs of low-carbon technologies, the administration has only recommended greater interagency cooperation on a patchwork of existing relatively modest incentives.
Questions over the long-term liability associated with CCS projects were also identified by the report as a key barrier to full-fledged deployment. Open-ended federal indemnification, meaning CCS firms would not be held financially responsible for potentially costly incidents such as the release of a hazardous substance during the CCS process, is not a viable option.
But the task force suggested four potential alternatives: relying on existing state and federal laws that define or allocate liability, placing limits on claims, creating an industry-financed trust fund to support CCS activities and compensate parties for losses or damages that occur after site closure, and transfer of liability to the federal government after site closure with certain contingencies. The federal agencies will continue to evaluate these options and present recommendations by late 2011.
Gloria Gonzalez
Delivery, financing woes drive Vestas, Suzlon losses
19 August 2010
Delivery delays, tight financing and regulatory uncertainty are key factors behind significant losses in the renewables sector, analysts and industry say.
Delivering its interim results this week, Danish wind giant Vestas blamed the sluggish global economy and shipment delays for its second quarter loss of €119 million ($153 million).
The loss contrasts with Vestas’ €43 million profit in the corresponding period last year and is €37 million down on the loss announced in the first quarter. Meanwhile turbine shipments were down 54% from second quarter 2009 to 283 turbines.
Delays in order deliveries to the US, Spain and Germany – which Vestas said will not be reflected in its 2010 results – pushed the company to lower its guidance for 2010. The company downgraded its forecast 2010 earnings before interest and tax margin to 5-6%, from its previous forecast margin of 10-11%. Expected revenue was lowered from €7 billion to €6 billion.
Losses also deepened for Indian wind turbine company Suzlon, which posted a second quarter net loss of 9.12 billion rupees ($196 million), down from a 4.5 billion rupee loss year on year.
The company attributed the decline to lower sales volumes and foreign exchange losses.
The solar sector also took a hit, with solar panel manufacturer Suntech posting a net loss of $174.9 million, down from a $20.6 million profit in the previous quarter and a $9.6 million profit in the corresponding 2009 period.
The New York Stock Exchange-listed company said the loss was due to one-off impairment charges related to the wrap-up of its thin film trial operation and costs associated with the reorganisation of silicon wafer manufacturer Shunda, which Suntech part owns.
Sean McLoughlin, a London-based research analyst at investment bank Piper Jaffray, said banks’ increasing focus on due diligence and risk assessment has caused delays in financing for renewable projects. H e said this is particularly evident in the wind sector, due to the large-scale and costly nature of many projects.
Uncertainty over support mechanisms, particularly in countries such as Spain, was also delaying development, he said, as investors hold back awaiting clarity over incentive policies.
Delays in order deliveries was particularly an issue for Vestas, with Christian Nagstrup, a senior equity analyst at Denmark’s Jyske Bank, noting: “They had very strong growth in orders, but they had expected more.”
Nagstrup also pointed to government budget deficits and subsidy uncertainty in Europe and the US as other factors dragging the renewable sector down.
“In general the order intake has improved dramatically this year compared to a very low 2009, so in terms of the activity level, it seems to be on the rise. But there’s still a lot of uncertainty,” he said.
Matt Kaplan, a Cambridge, Massachusetts-based senior analyst with Emerging Energy Research, said in the US the current low demand for wind and the declining price of power has filtered down to suppliers and made it harder for wind projects to come online.
Looking ahead, he said the US wind sector is likely to remain slow over 2010, with installations down “significantly”. He forecast improvement in 2011 with further momentum to gather in the following years. However, he also noted the uncertainty that exists over US energy and renewable legislation.
“While there’s a lot of hope for a more substantial recovery in future years, there are some important pieces that need to fall into palce to ensure that level of demand is sufficient to create a viable market for the future,” he said.
Charlotte Dudley
Delivery delays, tight financing and regulatory uncertainty are key factors behind significant losses in the renewables sector, analysts and industry say.
Delivering its interim results this week, Danish wind giant Vestas blamed the sluggish global economy and shipment delays for its second quarter loss of €119 million ($153 million).
The loss contrasts with Vestas’ €43 million profit in the corresponding period last year and is €37 million down on the loss announced in the first quarter. Meanwhile turbine shipments were down 54% from second quarter 2009 to 283 turbines.
Delays in order deliveries to the US, Spain and Germany – which Vestas said will not be reflected in its 2010 results – pushed the company to lower its guidance for 2010. The company downgraded its forecast 2010 earnings before interest and tax margin to 5-6%, from its previous forecast margin of 10-11%. Expected revenue was lowered from €7 billion to €6 billion.
Losses also deepened for Indian wind turbine company Suzlon, which posted a second quarter net loss of 9.12 billion rupees ($196 million), down from a 4.5 billion rupee loss year on year.
The company attributed the decline to lower sales volumes and foreign exchange losses.
The solar sector also took a hit, with solar panel manufacturer Suntech posting a net loss of $174.9 million, down from a $20.6 million profit in the previous quarter and a $9.6 million profit in the corresponding 2009 period.
The New York Stock Exchange-listed company said the loss was due to one-off impairment charges related to the wrap-up of its thin film trial operation and costs associated with the reorganisation of silicon wafer manufacturer Shunda, which Suntech part owns.
Sean McLoughlin, a London-based research analyst at investment bank Piper Jaffray, said banks’ increasing focus on due diligence and risk assessment has caused delays in financing for renewable projects. H e said this is particularly evident in the wind sector, due to the large-scale and costly nature of many projects.
Uncertainty over support mechanisms, particularly in countries such as Spain, was also delaying development, he said, as investors hold back awaiting clarity over incentive policies.
Delays in order deliveries was particularly an issue for Vestas, with Christian Nagstrup, a senior equity analyst at Denmark’s Jyske Bank, noting: “They had very strong growth in orders, but they had expected more.”
Nagstrup also pointed to government budget deficits and subsidy uncertainty in Europe and the US as other factors dragging the renewable sector down.
“In general the order intake has improved dramatically this year compared to a very low 2009, so in terms of the activity level, it seems to be on the rise. But there’s still a lot of uncertainty,” he said.
Matt Kaplan, a Cambridge, Massachusetts-based senior analyst with Emerging Energy Research, said in the US the current low demand for wind and the declining price of power has filtered down to suppliers and made it harder for wind projects to come online.
Looking ahead, he said the US wind sector is likely to remain slow over 2010, with installations down “significantly”. He forecast improvement in 2011 with further momentum to gather in the following years. However, he also noted the uncertainty that exists over US energy and renewable legislation.
“While there’s a lot of hope for a more substantial recovery in future years, there are some important pieces that need to fall into palce to ensure that level of demand is sufficient to create a viable market for the future,” he said.
Charlotte Dudley
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