Congressional lawmakers have already made major concessions to Big Business as part of the cap-and-trade bill. With the legislation still struggling in the House, business has come back to ask for more.
"We seek some changes in order to better serve the purpose that the allocations are intended. As the bill may go to the House floor very soon, we see the need to suggest improvements now," Rich Wells, Dow Chemical's vice president for energy, told IBD.
The legislation, sponsored by Rep. Ed Markey, D-Mass, and Henry Waxman, D-Calif., would require businesses, utilities and others to have government permits for carbon emissions.
Initially, the White House sought to auction off all of the permits, generating a lot of revenue. Instead, 85% will be given away until 2025, when the government starts to phase them out. That's still too soon for some businesses, though.
At a hearing before the House Energy and Commerce Committee, business groups said repeatedly it was "critical" that the bill's provisions, especially the phase-in of caps on greenhouse gas emissions, be loosened.
"The bill has moved in a positive direction," said Dan Reidinger, spokesman for the Edison Electric Institute, an association of electric utilities. He said the group is still pursuing "incremental improvements."
While the bill has already passed the commerce panel, it also has to clear both the Agriculture and Ways and Means Committees before it can get a House floor vote.
Ag Chairman Collin Peterson, D-Minn., recently warned that the bill could stall in his committee if concessions aren't made for his members.
That will put a lot of pressure on the bill's sponsors to further amend it, since it required corporate sponsorship to get this far. Many businesses joined the U.S. Climate Action Partnership, a coalition with green groups that has been a key advocate for a cap-and-trade bill. Dow Chemical is one of USCAP's founders.
And if the bill isn't changed? Companies refuse to say what they might do in that situation.
"We are confident that the changes we seek can be accomplished," Dow's Wells told IBD.
Reidinger was also circumspect.
"We are just going to take things one step at a time," he said.
Most green groups back cap-and-trade programs as the best way to get a carbon reduction program in place. Many big businesses see a lucrative market in carbon permits.
Ultimately, the Waxman/Markey bill seeks to reduce carbon emissions to 28% below 2005 levels by 2020 and 80% by 2050.
But Thomas Farrell, president of Dominion Resources (D), testifying on behalf of the Edison Electric Institute at the hearing, said changes in the greenhouse gas emission allowances were "critical."
"A longer phase-out of the period of transitional allowances is one of the modifications to the bill that we seek," Farrell testified. "EEI believes these allocations are critical to holding down costs to electricity consumers — our fundamental and overriding concern."
At the same hearing, Dow's Wells also called for "critically important" revisions "to minimize the costs on U.S. manufacturers." Namely, that the carbon caps shouldn't be so tight.
"We think it would be better for the 2020 target to reflect a 14% reduction in (greenhouse gas) emissions from 2005 levels... rather than a 17% reduction," he testified.
G. Tommy Hodges, spokesman for the American Trucking Associations, urged lawmakers to prevent increases in the cost of diesel fuel. His industry consumes 90% of the product used in the U.S.
"(It is) critical to set aside free allowances specific to diesel fuel to mitigate dramatic fuel pricing increase," Hodges said. "Mechanisms should be put in place to ensure any diesel fuel emission allowances are in fact used to keep fuel prices in check."
A GOP staffer on the Energy and Commerce Committee said it showed how hard it will be to keep the business-green coalition.
"It is interesting that 85% free allowances still isn't enough," the staffer said.
China Industrial Power Demand 2020 highlights COVID-19 disruption to electricity consumption as factory output stalls; IHS Markit estimates losses equal to Chile's usage, impacting thermal coal, LNG, and Hubei's industrial load.
Key Points
An analysis of COVID-19's hit to China's electricity use, cutting industry demand and fuel needs for coal and LNG.
✅ 73 billion kWh loss equals Chile's annual power use
✅ Cuts translate to 30m tonnes coal or 9m tonnes LNG
✅ Hubei peak load 21 percent below plan amid shutdowns
China’s industrial power demand in 2020 may decline by as much as 73 billion kilowatt hours (kWh), according to IHS Markit, as the outbreak of the coronavirus has curtailed factory output and prevented some workers from returning to their jobs.
FILE PHOTO: Smoke is seen from a cooling tower of a China Energy ultra-low emission coal-fired power plant during a media tour, in Sanhe, Hebei province, China July 18, 2019. REUTERS/Shivani Singh The cut represents about 1.5% of industrial power consumption in China. But, as the country is the world’s biggest electricity consumer and analyses of China's electricity appetite routinely underscore its scale, the loss is equal to the power used in the whole of Chile and it illustrates the scope of the disruption caused by the outbreak.
The reduction is the energy equivalent of about 30 million tonnes of thermal coal, at a time when China aims to reduce coal power production, or about 9 million tonnes of liquefied natural gas (LNG), IHS said. The coal figure is more than China’s average monthly imports last year while the LNG figure is a little more than one month of imports, based on customs data.
China has tried to curtail the spread of the coronavirus that has killed more than 1,400 and infected over 60,000 by extending the Lunar New Year holiday for an extra week and encouraging people to work from home, measures that contributed to a global dip in electricity demand as well.
Last year, industrial users consumed 4.85 trillion kWh electricity, accounting for 67% of the country’s total, even as India's electricity demand showed sharp declines in the region.
Xizhou Zhou, the global head of power and Renewables at IHS Markit, said that in a severe case where the epidemic goes on past March, China’s economic growth will be only 4.2% during 2020, down from an initial forecast of 5.8%, while power consumption will climb by only 3.1%, down from 4.1% initially, even as power cuts and blackouts raise concerns.
“The main uncertainty is still how fast the virus will be brought under control,” said Zhou, adding that the impact on the power sector will be relatively modest from a full-year picture in 2020, even though China's electric power woes are already clouding solar markets.
In Hubei province, the epicenter of the virus outbreak, the peak power load at the end of January was 21% less than planned, mirroring how Japan's power demand was hit during the outbreak, data from Wood Mackenzie showed.
Industrial operating rates point to a firm reduction in power consumption in China.
Utilization rates at plastic processors are between 30% and 60% and the low levels are expected to last for another two week, according to ICIS China.
Weaving machines at textile plants are operating at below 10% of capacity, the lowest in five years, ICIS data showed. China is the world’s biggest textile and garment exporter.
Boeing 787 More-Electric Architecture replaces pneumatics with bleedless pressurization, VFSG starter-generators, electric brakes, and heated wing anti-ice, leveraging APU, RAT, batteries, and airport ground power for efficient, redundant electrical power distribution.
Key Points
An integrated, bleedless electrical system powering start, pressurization, brakes, and anti-ice via VFSGs, APU and RAT.
✅ VFSGs start engines, then generate 235Vac variable-frequency power
✅ Bleedless pressurization, electric anti-ice improve fuel efficiency
✅ Electric brakes cut hydraulic weight and simplify maintenance
The 787 Dreamliner is different to most commercial aircraft flying the skies today. On the surface it may seem pretty similar to the likes of the 777 and A350, but get under the skin and it’s a whole different aircraft.
When Boeing designed the 787, in order to make it as fuel efficient as possible, it had to completely shake up the way some of the normal aircraft systems operated. Traditionally, systems such as the pressurization, engine start and wing anti-ice were powered by pneumatics. The wheel brakes were powered by the hydraulics. These essential systems required a lot of physical architecture and with that comes weight and maintenance. This got engineers thinking.
What if the brakes didn’t need the hydraulics? What if the engines could be started without the pneumatic system? What if the pressurisation system didn’t need bleed air from the engines? Imagine if all these systems could be powered electrically… so that’s what they did.
Power sources
The 787 uses a lot of electricity. Therefore, to keep up with the demand, it has a number of sources of power, much as grid operators track supply on the GB energy dashboard to balance loads. Depending on whether the aircraft is on the ground with its engines off or in the air with both engines running, different combinations of the power sources are used.
Engine starter/generators
The main source of power comes from four 235Vac variable frequency engine starter/generators (VFSGs). There are two of these in each engine. These function as electrically powered starter motors for the engine start, and once the engine is running, then act as engine driven generators.
The generators in the left engine are designated as L1 and L2, the two in the right engine are R1 and R2. They are connected to their respective engine gearbox to generate electrical power directly proportional to the engine speed. With the engines running, the generators provide electrical power to all the aircraft systems.
APU starter/generators
In the tail of most commercial aircraft sits a small engine, the Auxiliary Power Unit (APU). While this does not provide any power for aircraft propulsion, it does provide electrics for when the engines are not running.
The APU of the 787 has the same generators as each of the engines — two 235Vac VFSGs, designated L and R. They act as starter motors to get the APU going and once running, then act as generators. The power generated is once again directly proportional to the APU speed.
The APU not only provides power to the aircraft on the ground when the engines are switched off, but it can also provide power in flight should there be a problem with one of the engine generators.
Battery power
The aircraft has one main battery and one APU battery. The latter is quite basic, providing power to start the APU and for some of the external aircraft lighting.
The main battery is there to power the aircraft up when everything has been switched off and also in cases of extreme electrical failure in flight, and in the grid context, alternatives such as gravity power storage are being explored for long-duration resilience. It provides power to start the APU, acts as a back-up for the brakes and also feeds the captain’s flight instruments until the Ram Air Turbine deploys.
Ram air turbine (RAT) generator
When you need this, you’re really not having a great day. The RAT is a small propeller which automatically drops out of the underside of the aircraft in the event of a double engine failure (or when all three hydraulics system pressures are low). It can also be deployed manually by pressing a switch in the flight deck.
Once deployed into the airflow, the RAT spins up and turns the RAT generator. This provides enough electrical power to operate the captain’s flight instruments and other essentials items for communication, navigation and flight controls.
External power
Using the APU on the ground for electrics is fine, but they do tend to be quite noisy. Not great for airports wishing to keep their noise footprint down. To enable aircraft to be powered without the APU, most big airports will have a ground power system drawing from national grids, including output from facilities such as Barakah Unit 1 as part of the mix. Large cables from the airport power supply connect 115Vac to the aircraft and allow pilots to shut down the APU. This not only keeps the noise down but also saves on the fuel which the APU would use.
The 787 has three external power inputs — two at the front and one at the rear. The forward system is used to power systems required for ground operations such as lighting, cargo door operation and some cabin systems. If only one forward power source is connected, only very limited functions will be available.
The aft external power is only used when the ground power is required for engine start.
Circuit breakers
Most flight decks you visit will have the back wall covered in circuit breakers — CBs. If there is a problem with a system, the circuit breaker may “pop” to preserve the aircraft electrical system. If a particular system is not working, part of the engineers procedure may require them to pull and “collar” a CB — placing a small ring around the CB to stop it from being pushed back in. However, on the 787 there are no physical circuit breakers. You’ve guessed it, they’re electric.
Within the Multi Function Display screen is the Circuit Breaker Indication and Control (CBIC). From here, engineers and pilots are able to access all the “CBs” which would normally be on the back wall of the flight deck. If an operational procedure requires it, engineers are able to electrically pull and collar a CB giving the same result as a conventional CB.
Not only does this mean that the there are no physical CBs which may need replacing, it also creates space behind the flight deck which can be utilised for the galley area and cabin.
A normal flight
While it’s useful to have all these systems, they are never all used at the same time, and, as the power sector’s COVID-19 mitigation strategies showed, resilience planning matters across operations. Depending on the stage of the flight, different power sources will be used, sometimes in conjunction with others, to supply the required power.
On the ground
When we arrive at the aircraft, more often than not the aircraft is plugged into the external power with the APU off. Electricity is the blood of the 787 and it doesn’t like to be without a good supply constantly pumping through its system, and, as seen in NYC electric rhythms during COVID-19, demand patterns can shift quickly. Ground staff will connect two forward external power sources, as this enables us to operate the maximum number of systems as we prepare the aircraft for departure.
Whilst connected to the external source, there is not enough power to run the air conditioning system. As a result, whilst the APU is off, air conditioning is provided by Preconditioned Air (PCA) units on the ground. These connect to the aircraft by a pipe and pump cool air into the cabin to keep the temperature at a comfortable level.
APU start
As we near departure time, we need to start making some changes to the configuration of the electrical system. Before we can push back , the external power needs to be disconnected — the airports don’t take too kindly to us taking their cables with us — and since that supply ultimately comes from the grid, projects like the Bruce Power upgrade increase available capacity during peaks, but we need to generate our own power before we start the engines so to do this, we use the APU.
The APU, like any engine, takes a little time to start up, around 90 seconds or so. If you remember from before, the external power only supplies 115Vac whereas the two VFSGs in the APU each provide 235Vac. As a result, as soon as the APU is running, it automatically takes over the running of the electrical systems. The ground staff are then clear to disconnect the ground power.
If you read my article on how the 787 is pressurised, you’ll know that it’s powered by the electrical system. As soon as the APU is supplying the electricity, there is enough power to run the aircraft air conditioning. The PCA can then be removed.
Engine start
Once all doors and hatches are closed, external cables and pipes have been removed and the APU is running, we’re ready to push back from the gate and start our engines. Both engines are normally started at the same time, unless the outside air temperature is below 5°C.
On other aircraft types, the engines require high pressure air from the APU to turn the starter in the engine. This requires a lot of power from the APU and is also quite noisy. On the 787, the engine start is entirely electrical.
Power is drawn from the APU and feeds the VFSGs in the engines. If you remember from earlier, these fist act as starter motors. The starter motor starts the turn the turbines in the middle of the engine. These in turn start to turn the forward stages of the engine. Once there is enough airflow through the engine, and the fuel is igniting, there is enough energy to continue running itself.
After start
Once the engine is running, the VFSGs stop acting as starter motors and revert to acting as generators. As these generators are the preferred power source, they automatically take over the running of the electrical systems from the APU, which can then be switched off. The aircraft is now in the desired configuration for flight, with the 4 VFSGs in both engines providing all the power the aircraft needs.
As the aircraft moves away towards the runway, another electrically powered system is used — the brakes. On other aircraft types, the brakes are powered by the hydraulics system. This requires extra pipe work and the associated weight that goes with that. Hydraulically powered brake units can also be time consuming to replace.
By having electric brakes, the 787 is able to reduce the weight of the hydraulics system and it also makes it easier to change brake units. “Plug in and play” brakes are far quicker to change, keeping maintenance costs down and reducing flight delays.
In-flight
Another system which is powered electrically on the 787 is the anti-ice system. As aircraft fly though clouds in cold temperatures, ice can build up along the leading edge of the wing. As this reduces the efficiency of the the wing, we need to get rid of this.
Other aircraft types use hot air from the engines to melt it. On the 787, we have electrically powered pads along the leading edge which heat up to melt the ice.
Not only does this keep more power in the engines, but it also reduces the drag created as the hot air leaves the structure of the wing. A double win for fuel savings.
Once on the ground at the destination, it’s time to start thinking about the electrical configuration again. As we make our way to the gate, we start the APU in preparation for the engine shut down. However, because the engine generators have a high priority than the APU generators, the APU does not automatically take over. Instead, an indication on the EICAS shows APU RUNNING, to inform us that the APU is ready to take the electrical load.
Shutdown
With the park brake set, it’s time to shut the engines down. A final check that the APU is indeed running is made before moving the engine control switches to shut off. Plunging the cabin into darkness isn’t a smooth move. As the engines are shut down, the APU automatically takes over the power supply for the aircraft. Once the ground staff have connected the external power, we then have the option to also shut down the APU.
However, before doing this, we consider the cabin environment. If there is no PCA available and it’s hot outside, without the APU the cabin temperature will rise pretty quickly. In situations like this we’ll wait until all the passengers are off the aircraft until we shut down the APU.
Once on external power, the full flight cycle is complete. The aircraft can now be cleaned and catered, ready for the next crew to take over.
Bottom line
Electricity is a fundamental part of operating the 787. Even when there are no passengers on board, some power is required to keep the systems running, ready for the arrival of the next crew. As we prepare the aircraft for departure and start the engines, various methods of powering the aircraft are used.
The aircraft has six electrical generators, of which only four are used in normal flights. Should one fail, there are back-ups available. Should these back-ups fail, there are back-ups for the back-ups in the form of the battery. Should this back-up fail, there is yet another layer of contingency in the form of the RAT. A highly unlikely event.
The 787 was built around improving efficiency and lowering carbon emissions whilst ensuring unrivalled levels safety, and, in the wider energy landscape, perspectives like nuclear beyond electricity highlight complementary paths to decarbonization — a mission it’s able to achieve on hundreds of flights every single day.
Minnesota Carbon-Free Power by 2050 aims to shift utilities to renewable energy, wind and solar, boosting efficiency while managing grid reliability, emissions, and costs under a clean energy mandate and statewide climate policy.
Key Points
A statewide goal to deliver 100% carbon-free power by 2050, prioritizing renewables, efficiency, and grid reliability.
✅ Targets 100% carbon-free electricity statewide by 2050
✅ Prioritizes wind, solar, and efficiency before fossil fuels
✅ Faces utility cost, reliability, and legislative challenges
Gov. Tim Walz's plan for Minnesota to get 100 percent of its electricity from carbon-free sources by 2050, similar to California's 100% carbon-free mandate in scope, was criticized Tuesday at its first legislative hearing, with representatives from some of the state's smaller utilities saying they can't meet that goal.
Commerce Commissioner Steve Kelley told the House climate committee that the Democratic governor's plan is ambitious. But he said the state's generating system is "aging and at a critical juncture," with plants that produce 70 percent of the state's electricity coming up for potential retirement over the next two decades. He said it will ensure that utilities replace them with wind, solar and other innovative sources, and increased energy efficiency, before turning to fossil fuels.
"Utilities will simply need to demonstrate why clean energy would not work whenever they propose to replace or add new generating capacity," he said.
Walz's plan, announced last week, seeks to build on the success of a 2007 law that required Minnesota utilities to get at least 25 percent of their electricity from renewable sources by 2025. The state largely achieved that goal in 2017 thanks to the growth of wind and solar power, and the topic of climate change has only grown hotter, with some proposals like a fully renewable grid by 2030 pushing even faster timelines, hence the new goal for 2050.
But Joel Johnson, a lobbyist for the Minnkota Power Cooperative, testified that the governor's plan is "misguided and unrealistic" even with new technology to capture carbon dioxide emissions from power plants. Johnson added that even the big utilities that have set goals of going carbon-free by mid-century, such as Minneapolis-based Xcel Energy, acknowledge they don't know yet how they'll hit the net-zero electricity by mid-century target they have set.
Minnkota serves northwestern Minnesota and eastern North Dakota.
Tim Sullivan, president and CEO of the Wright-Hennepin Cooperative Electric Association in the Twin Cities area, said the plan is a "bad idea" for the 1.7 million state electric consumers served by cooperatives. He said Minnesota is a "minuscule contributor" to total global carbon emissions, even as the EU plans to double electricity use by 2050 to meet electrification demands.
"The bill would have a devastating impact on electric consumers," Sullivan said. "It represents, in our view, nothing short of a first-order threat to the safety and reliability of Minnesota's grid."
Isaac Orr is a policy fellow at the Minnesota-based conservative think tank, the Center for the American Experiment, which released a report critical of the plan Tuesday. Orr said all Minnesota households would face higher energy costs and it would harm energy-intensive industries such as mining, manufacturing and health care, while doing little to reduce global warming.
"This does not pass a proper cost-benefit analysis," he testified.
Environmental groups, including Conservation Minnesota and the Sierra Club, supported the proposal while acknowledging the challenges, noting that cleaning up electricity is critical to climate pledges in many jurisdictions.
"Our governor has called climate change an existential crisis," said Kevin Lee, director of the climate and energy program at the Minnesota Center for Environmental Advocacy. "This problem is the defining challenge of our time, and it can feel overwhelming."
Rep. Jean Wagenius, the committee chairwoman and Minneapolis Democrat who's held several hearings on the threats that climate change poses, said she expected to table the bill for further consideration after taking more testimony in the evening and would not hold a vote Tuesday.
While the bill has support in the Democratic-controlled House, it's not scheduled for action in the Republican-led Senate. Rep. Pat Garofalo, a Farmington Republican, quipped that it "has a worse chance of becoming law than me being named the starting quarterback for the Minnesota Vikings."
Birtle Transmission Line connects Manitoba Hydro to SaskPower, enabling 215 MW of clean hydroelectricity, improving grid reliability, supporting affordable rates, and advancing Green Infrastructure goals under the Investing in Canada Plan across Manitoba and Saskatchewan.
Key Points
A 46 km line moving up to 215 MW from Manitoba Hydro to SaskPower, improving reliability and supplying cleaner power.
✅ Enables interprovincial grid tie between Manitoba and Saskatchewan
✅ Delivers up to 215 MW of renewable hydroelectricity
✅ Supports affordable rates and lower GHG emissions
The federal government announced funding for the Birtle Transmission Line Monday morning.
The project will help Manitoba Hydro build a transmission line from Birtle South Station in the Municipality of Prairie View to the Manitoba–Saskatchewan border 46 kilometres northwest. Once completed, the new line will allow up to 215 megawatts of hydroelectricity to flow from the Manitoba Hydro power grid to the SaskPower power grid, similar to the Great Northern Transmission Line connecting Manitoba and Minnesota today.
The government said the transmission line would create a more stable energy supply, keep energy rates affordable and help Saskatchewan's efforts to reduce cumulative greenhouse-gas emissions in that province.
"The Government of Canada is proud to be working with Manitoba to support projects that create jobs and improve people's lives across the province. The Birtle Transmission Line will provide the region with reliable and greener energy, as seen with Canadian hydropower to New York projects, that will help protect our environment while laying the groundwork for clean economic growth," said Jim Carr, member of Parliament for Winnipeg South Centre, on behalf of Catherine McKenna, minister of infrastructure and communities.
The Government of Canada is investing more than $18.7 million, and the government of Manitoba is contributing more than $42 million in this project through the Green Infrastructure Stream of the Investing in Canada Plan, which also supports Atlantic grid improvements nationwide.
"The Province of Manitoba has one of the cleanest electricity grids in Canada and the world with over 99 per cent of our electricity generated from clean, renewable sources, rooted in Manitoba's hydro history," said Central Services Minister Reg Helwer. "The Made-in-Manitoba Climate and Green Plan is good not only for Manitoba but for Canada and globally."
Jay Grewal, president, and CEO of Manitoba Hydro said the funding is a great example of co-operation between the provincial and federal governments, including investments in smart grid technology that modernize local networks.
"We are very pleased that Manitoba Hydro's Birtle Transmission Project is among the first projects to receive funding under the Canada Infrastructure Program, and we would like to thank both levels of governments for recognizing the importance of the project as we strengthen ties with our neighbours in Saskatchewan, as U.S.-Canada transmission approvals advance elsewhere," said Grewal.
A spokesperson for Manitoba Hydro said it’s too early to say how many jobs will be created during construction, as final contracts have not yet been awarded.
RBC Renewable Energy PPA supports a 39 MW Alberta solar project, with Bullfrog Power and BluEarth Renewables, advancing clean energy in a deregulated market through a long-term power purchase agreement in Canada today.
Key Points
A long-term power purchase agreement where RBC buys most output from a 39 MW Alberta solar project via Bullfrog Power.
✅ 39 MW solar build in County of Forty Mile, Alberta
✅ Majority of output purchased by RBC via Bullfrog Power
✅ Supports cost-competitive renewables in deregulated market
The Royal Bank of Canada says it is the first Canadian bank to sign a long-term renewable energy power purchase agreement, a deal that will support the development of a 39-megawatt, $70-million solar project in southern Alberta, within an energy powerhouse province.
The bank has agreed with green energy retailer Bullfrog Power to buy the majority of the electricity produced by the project, as a recent federal green electricity contract highlights growing demand, to be designed and built by BluEarth Renewables of Calgary.
The project is to provide enough power for over 6,400 homes and the panel installations will cover 120 hectares, amid a provincial renewable energy surge that could create thousands of jobs, the size of 170 soccer fields.
The solar installation is to be built in the County of Forty Mile, a hot spot for renewable power that was also chosen by Suncor Energy Inc. for its $300-million 200-MW wind power project (approved last year and then put on hold during the COVID-19 pandemic), and home to another planned wind power farm in Alberta.
BluEarth says commercial operations at its Burdett and Yellow Lake Solar Project are expected to start up in April 2021, underscoring solar power growth in the province.
READ MORE: Wind power developers upbeat about Alberta despite end of power project auctions
It says the agreement shows that renewable energy can be cost-competitive, with lower-cost solar contracts in a deregulated electricity market like Alberta’s, adding the province has some of the best solar and wind resources in Canada.
“We’re proud to be the first Canadian bank to sign a long-term renewable energy power purchase agreement, demonstrating our commitment to clean, sustainable power, as Alberta explores selling renewable energy at scale,” said Scott Foster, senior vice-president and global head of corporate real estate at RBC.
Manus Island Naval Base strengthens US-Australia-PNG cooperation at Lombrum, near the South China Sea, bolstering sovereignty, maritime rights, and Pacific security amid APEC talks, infrastructure investment, and Belt and Road competition.
Key Points
A US-Australia-PNG facility at Lombrum to bolster Pacific security and protect maritime rights across the region.
✅ Shared by US, Australia, and PNG at Lombrum on Manus Island
✅ Near South China Sea, reinforcing maritime security and access
✅ Counters opaque lending, aligns with free trade and infrastructure
Scott Morrison has caught himself bang in the middle of escalating tensions between the United States and China.
The US and Australia will share a naval base in the north end of Papua New Guinea on Manus Island, creating another key staging point close to the contested South China Sea.
“The United States will partner with Papua New Guinea and Australia on their joint initiative at Lombrum Naval Base,” US Vice President Mike Pence said.
“We will work with these two nations to protect sovereignty and maritime rights in the Pacific Islands. ”
At an Asia Pacific Economic Cooperation meeting in Port Moresby on Saturday, Mr Morrison urged nations to embrace free trade and avoid “unsustainable debt”, as the Philippines' clean energy commitment also featured in discussions.
He confirmed the US and Australia will share an expanded naval base on Manus Island, as the US ramped up rhetoric against China.
Mr Pence quoted President Donald Trump in his speech following Chinese President Xi Jinping, even as a Biden energy agenda is seen by some as better for Canada.
“We have great respect for President Xi and respect for China. But in the president’s words, China’s taken advantage of the United States for many, many years,” he said.
“And those days are over.”
His speech was met with stony silence from the Chinese delegation, after President Xi had reassured leaders his Belt and Road Initiative was not a debt trap.
China has also been at loggerheads with the United States over its territorial ambitions in the Pacific, encapsulated by Xi’s Belt and Road Initiative.
Unveiled in 2013, the Belt and Road initiative aims to bolster a sprawling network of land and sea links with Southeast Asia, Central Asia, the Middle East, Europe and Africa.
China’s efforts to win friends in the resource-rich Pacific have been watched warily by the traditionally influential powers in the region — Australia and the United States.
“It is not designed to serve any hidden geopolitical agenda,” President Xi said on Saturday.
“Nor is it a trap, as some people have labelled it.”
But Mr Pence said loans to developing countries were too often opaque and encouraged nations to look to the US instead of China.
“Too often they come with strings attached and lead to staggering debt,” he said in his speech.
“Do not accept foreign debt that could compromise your sovereignty.
“Just like America, always put your country first.”
Mr Morrison committed Australia to look to the Pacific nations and on Sunday he will host an informal BBQ with Pacific leaders, amid domestic moves like Western Australia's electricity bill credit for households.
He also announced a joint partnership with Japan and the US to fund infrastructure around the region, while at home debates over an electricity market overhaul continue.
On the back of Mr Morrison’s defence of free trade at the summit, Australian Trade Minister Simon Birmingham said he was confident the US was interested in an open trading environment in the long run, with parallel discussions such as a U.S.-Canada energy partnership underscoring regional economic ties.
Australia is hoping the US will, in the end, take a similar approach to its trade dispute with China as it did with its tariff threats against Mexico and Canada, as cross-border negotiations like the Columbia River Treaty continue to shape U.S.-Canada ties.
“Ultimately, they laid down arms, they walked away from threats, and they struck a new trade deal that ensures trade continues in that North American bloc,” Mr Birmingham told ABC TV on Sunday.
“We hope the same will happen in relation to China.”
Four countries including the US have signed up to an effort to bring electricity to 70 per cent of Papua New Guinea’s people by 2030.
Australia, Japan, the US and New Zealand on Sunday signed an agreement to work with Papua New Guinea’s government on electrification.
It’s the latest sign of great power rivalry in the South Pacific, where China is vying with the US and its allies for influence.
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