#nationalenergyguarantee

Bluescope to expand US plant thanks to cheap energy

Bluescope Steel Logo

Thanks to Australia’s ridiculous energy prices, Aussie company Bluescope confirmed the expansion of capacity in Ohio. In Feb 2019, the company CEO said, “much cheaper energy in the United States is a major driver of the company’s preparedness to invest in a $1 billion expansion in Ohio.”

Meanwhile, our lawmakers continue to behave as if they’re in control of power generation, pandering to pathetic ideologies instead of realities.

In 2017, Tomago Aluminium reported, “We have to grow to be competitive and to be ahead of the curve, but when the spot price went to $14,000 [per megawatt hour] we had to take that load off. It’s just not sustainable. You can’t smelt at that price. We have had to curtail or modulate the load [on occasions] or we get hammered by the price…We cannot continue to keep paying those prices. We have to find a solution. The prices are crippling”

Well done Australia. Home to the cheapest and best quality energy-producing assets around but saddled with the world’s highest prices. Beholden to being guilt-tripped into reducing CO2 levels that even if we cut to zero would have absolutely no impact on limiting global temperatures.

We only need look to Germany to see how well their renewables plan is working for them. What have the Germans done recently? Favour more electricity production from lignite (brown coal) and biomass which are the two highest emitting power generation bases. Furthermore,

“After the German government decided to reduce subsidies to the solar industry in 2012, the industry nose-dived. By this year, virtually every major German solar producer had gone under as new capacity declined by 90 per cent and new investment by 92 per cent. Some 80,000 workers — 70 per cent of the solar workforce — lost their jobs. Solar power’s market share is shrinking and solar panels, having outlived their usefulness, are being retired without being replaced.

Wind power faces a similar fate. Germany has some 29,000 wind turbines, almost all of which have been benefitting from a 20-year subsidy program that began in 2000. Starting in 2020, when subsidies run out for some 5,700 wind turbines, thousands of them each year will lose government support, making the continued operation of most of them uneconomic based on current market prices. To make matters worse, with many of the turbines failing and becoming uneconomic to maintain, they represent an environmental liability and pose the possibility of abandonment. No funds have been set aside to dispose of the blades, which are unrecyclable, or to remove the turbines’ 3,000-tonne reinforced concrete bases, which reach depths of 20 metres, making them a hazard to the aquifers they pierce.”

Canberra, please note that if you pursue common sense, voters will celebrate a reduction in power prices that current experience proves are NOT going to come through ludicrous renewable energy targets.