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Prism

Examining Alternative Energy Sources

Aired January 20, 2010 - 12:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

STAN GRANT, CNN INTERNATIONAL HOST: They've taken so much in stride, but this one sent them running.

People in Haiti endure a 6.1-magnitude aftershock; the strongest since the initial quake, more than a week ago.

Green-based energy's in focus. Global leaders gather in Abu Dhabi to look at new solutions to energy needs. But are the economically viable?

And what role should nuclear power play? Is it now essentially for the world's growing energy demands?

From CNN Abu Dhabi, this is Prism, coming to you live from the World Future Energy Summit here in Abu Dhabi, where it is drawing hundreds of leaders -- from politics and science and business -- here to try to find solutions to how we power this planet into the future.

It's Day 3 of the Summit, and CNN has been here every day, covering the event, and looking at ways that are most effective to address global climate change.

In a moment, we'll take you around and give you a look at the summit, and just how big this Abu Dhabi national exhibition center actually is.

But first, we'll go to Haiti -- which of course is now dealing with the largest aftershock since that earthquake a week ago that devastated the country.

The people of course are now waking up, trying to make sense of the country and the devastation that they are surrounded by.

Joining us now with the latest from Port-Au-Prince is Jonathan Mann. Jonathan?

JONATHAN MANN: Stan, it was a vivid reminder of the earthquake eight days ago, and it panicked a lot of people around me. The building that we are working from and sleeping in shook. It trembled for what I'm guessing would be about 15 seconds. And then it took a little while longer than that for everything where everything just stopped moving completely.

What in fact we experienced was an earthquake with a magnitude of 6.1. And that means it was just a fraction of the earthquake magnitude 7.0 that struck Haiti and killed so many people, and damaged so many buildings here in Port-Au-Prince. As far as we can tell, the damage today was minimal. People in the streets screamed. People indoors rushed outside.

But it would seem that everything that was ready to collapse already had.

Still, it gives you a sense that Haiti is a long way from stable. But more importantly, it's a long way from being healed, or cured, or fed.

United Nations aid workers estimate that they have already distributed about a million meals to this city and its surrounding area, and they hope to up that to 10 million within a week. The aid effort is enormous.

Still, there are problems. There are bottlenecks at the airport. Aid is piling up.

The slow move of aid through that airport now operating at 3-times its previous capacity, 24 hours a day, has led the US military to establish two new airfields that should be operational shortly. The main port of Port- au-Prince is closed. They're trying to establish two new ports to bring food in.

The bottlenecks are pushing all of this.

But the truth is, it's like trying to get a firehose to feed into an eyedropper.

No one has ever tried to feed so many people in this country so quickly. No one's ever tried to move in so much medical equipment, so much construction equipment. It's a job no one's done before, Stan. We're watching it get better, but there's a long way to go.

GRANT: Jonathan, thank you very much for that. Jonathan Mann joining us there from Port-Au-Prince.

Well, heads of state and big names in business have come to Abu Dhabi to try to promote innovation and create investment opportunities in renewable energy.

Well, this is the Abu Dhabi National Exhibition Center -- a truly enormous building. There is no way we could possibly do justice to the size of this building just here.

But walking around these corridors, you feel like you've walked about 20 football fields. It really is a massive complex.

Let me run through some of the statistics for you. It's 55,000 square meters; about 180,000 square foot. That makes it the largest exhibition venue in the Middle East.

There are expected to be 20,000 people attending over the four days of this summit.

The opening day, alone -- the opening ceremony -- there were about 9,000 people. So perhaps it'll go well past that number.

The number of countries here represented, more than 50. There are 18 pavilions, just like this one here, where you see all sorts of gimmicks and all sorts of gadgets.

We have solar-powered planes and cars. We have people showing off their wares.

The number of companies exhibiting here -- 600-plus. So a massive building. A huge conference. And so many people being brought here for it.

But ultimately, we have to remember this is about energy.

It is about energy. What is "renewable energy?" Well, it's energy production which uses sources that can never run out. Currently, renewable energy accounts for around 1/5 of global production. Coming from sources that include wind turbines, solar panels and hydroelectric dams.

Renewable energy is considered an important part of climate-change policies. And of course, they don't release any greenhouse gases into the atmosphere.

Well, the United Arab Eremites is home to the world's 7th-largest proven oil reserves. The 6th-largest proven natural gas reserves.

Nevertheless, Eremites know they must move to sustainable, renewable energy for their future, like all of us have to do on the planet. The issue many are still grappling with... the cost of renewable energy. Is it economically viable?

This is a fully-electric sports car. It takes about three hours to fully charge. But once it is, I'll tell you what -- it has some power.

It can reach a top speed of about 150 miles an hour; almost 300 km an hour. It will travel for about 200-plus kilometers. Almost 200-plus miles -- almost 400 kilometers -- before it needs to be charged again.

This is an example of some of the technology that we're seeing on display at the World Future Energy Summit here in Abu Dhabi.

Now, Abu Dhabi, of course, sits on massive oil reserves. But they realize here -- like the rest of the world realizes -- that it's a finite resource.

Fossil fuels will eventually run out, and it's getting more expensive. The race is on to try to find alternatives.

The question is, though, exactly where and what those alternatives will be. Right now, alternative energy is very costly. And just depending on which you're looking at, which option you're looking at, it doesn't really generate enough power to meet our needs.

So that's the question we're putting to people here at this World Future Energy Summit.

"Is alternative energy economically viable?"

MOHAMMED NASHEED, MALDIVES PRESIDENT: Those who are going to win this century would be those who are brave enough to embrace this new technology.

In my mind, this is going to be economy feasible. Carbon, ultimately, it going to be more and more expensive. Because people would be charging for all the pollution, as well.

We might not be doing that today to the extent that we might all want to. But there's no doubt that this is going to happen in the future.

ED MILIBAND, BRITISH ENERGY AND CLIMATE CHANGE MINISTER: I think not going down the renewable energy path is not sustainable. The most-sustainable economic solution is to take the renewable energy track.

Everything we know is that the environmental and economic costs of not tackling climate change are enormous.

We also know there is a resource crunch coming in the world around oil and gas supplies. And the way we get the most sustainable oil and gas prices is actually by making the transition to clean energy. Managing that demand for oil and gas.

GRANT: Well, renewable energy is something we've been keeping an eye on for some time. And our reporters have been looking around for some new innovations. Ben Wedeman takes a look at Egypt's commitment to solar power.

BEN WEDEMAN: The sun. The ancient Egyptians worshiped it as a god. And today in the desert south of Cairo, modern Egyptians are building a power plant designed to harness the sun's life-giving rays to produce electricity.

This is the largest solar-energy project in the Middle East. And if there's one thing Egypt does not lack, it's sunshine.

Workers assemble the massive panels onsite, using methods developed in Germany. The solar panels are designed to follow the sun across the sky.

The panels will heat a special non-expanding oil in small pipes. The oil will then heat water, which will create the steam and the pressure necessary to run the turbine.

The plant will run on a combination of solar power in the day and natural gas at night, when demand is highest.

Nearby, an aging power plant looms through the haze. A reminder, if one was needed, of the old polluting technology that needs to be replaced.

This sort of project has huge potential throughout the region, says project manager Reda Abd Elghani.

REDA ABD ELGHANI, PROJECT MANAGER: If we succeed as we hope to do, like these projects in Damascus and Arabian Sea and in Libya and Algeria and Morocco and Saudi Arabia, and even in the south -- in Sudan or Yemen --

WEDEMAN: Electricity produced here will feed into Egypt's national grid, providing power for about half a million people; a small percentage of Egypt's population of more than 80 million, but it's a good start, says engineer Mohammed Eldessouky.

MOHAMMED ELDESSOUKY, ORASCOM CONSTRUCTION SERVICES: The scale of the project now is very small. But let's say this is for the beginning, only.

But I'm sure that in the future, it will be on a larger scale, and there will be a lot -- many, many -- projects like this one in the future.

WEDEMAN: And Egypt has all the raw materials to exploit renewable power sources, says Egypt's top alternative-energy official.

ABD EL RAHMAN SALAH EL DIN, MINISTRY OF ELECTRICITY AND ENERGY: Of course, we'll have wind. We'll have solar. We'll have land. We'll have these capabilities. We'll have cheap labor.

WEDEMAN: Cleaner energy means less greenhouse gases, and critical for smog-smothered Cairo, less pollution. Let the sun shine in!

Ben Wedeman, CNN, in Kuraymat, south of Cairo.

GRANT: Well, it's certainly green. And it's certainly gooey. We'll take a closer look at an eco-friendly technology in China that could make for a low-carbon future. Plus, nuclear power. Should it be a big part of a cleaner-energy solution in the Middle East?

(COMMERCIAL BREAK)

GRANT: Welcome back to this special edition from the World Future Energy Summit here in Abu Dhabi. We are putting renewable energy and other alternatives in the prism for you.

One of those options is nuclear energy. But it's expensive and it is controversial.

The question here, "What role should nuclear play in the Middle East?"

Leone Lakhani has some perspectives.

LEONE LAKHANI: It's a nation blest with rich oil reserves. But the United Arab Emirates is the latest Middle East country to explore nuclear energy.

UNIDENTIFIED PARTICIPANT: The government here says, "The demand for electricity will double by 2020, and the current capacity won't meet that demand."

So they say there's a critical need for alternative means of energy.

The question is, "In a country that's so full of sunshine, why opt for nuclear energy instead of solar power," for instance?

LAKHANI: Building a solar plant may seem more economical. But the company in charge of overseeing the UAE's nuclear program says the energy generated won't meet electricity demands.

UNIDENTIFIED PARTICIPANT: When you look at the generation of electricity, you have a base load generation and also a peak load generation.

The solar and the wind are more intermittent supplies. They supply in the daytime when you have wind and we don't have wind.

But when you talk about nuclear, it's a base tool (ph) that it's a continuous, 24/7 supply of electricity. And that's what will make it more attractive.

LAKHANI: The UAE's nuclear energy program will be used for domestic consumption. It's not the only country in the region with those ambitions.

Egypt announced plans to build a number of nuclear power stations to generate electricity. Saudi Arabia is developing a civilian nuclear power supply with Bahrain, Kuwait, Oman and Qatar.

Jordan plans to develop its first nuclear power plant by 2017. It also boasts large reserves of a uranium blend, and could potentially create an industry for exportable nuclear materials.

RICHARD STEWART, ENVIRONMENTAL LAW PROFESSOR: There's going to be a need for uranium for expanding nuclear power, and Jordan is a very good source of it.

The enrichment is the key security concern in the process. Not the mining; not the plants.

LAKHANI: Any nuclear energy program in the Middle East may still come under scrutiny, but it's a concern the UAE is eager to deflect.

UNIDENTIFIED PARTICIPANT: Policy Number 1 is safety and (INAUDIBLE). That's Number 1, it's Number 2, it's Number 3. And it is the most important aspect of this program.

When it comes to all safety principles, this is a peaceful program that has the purpose of the generation of electricity.

LAKHANI: Safety, security and renewable energy. The goals for a region that so much of the world depends on for their energy needs is now keen to diversify away from their traditional forms of energy.

Leone Lakhani, CNN, Abu Dhabi.

GRANT: Well, according to the International Atomic Energy Agency, there are 55 nuclear power reactors under construction in the world, right now. China has the most, with at least 15. Russia, India, South Korea and Bulgaria are among the other countries building new power plants.

Estimates for building a nuclear power plant vary greatly. Historical construction costs in the US are between $6 and 10 billion. But new estimates globally are as low as $4 billion.

Construction is not a quick process -- taking between 4 and 12 years. Construction on Iran's Bushehr nuclear plant started in the 1970s. It is finally scheduled to come online this year.

Well, construction costs are only one part of the equation. There are also the costs of fuel, operations and of course waste disposal.

Still, industry and analysis show that nuclear energy is competitive with other forms of power generation.

So throughout this World Future Energy Summit, we asked around to get a sense from people whether nuclear should be among the alternatives looked at.

UNIDENTIFIED PARTICIPANT: Actually, the nuclear question is a good question. It comes in the context of the total supply -- available supply -- of energy. And the fact that in light of very high growth of demand for power, many sources need to be explored.

And the key question for every government is around the energy mix. Nuclear is only one avenue for complementing the energy portfolio with viable solutions to cater to the energy demand.

So nuclear is one. Renewable energy is definitely another one. And conventional power adapted to reduce emissions is also another viable source.

UNIDENTIFIED PARTICIPANT: The advantage of nuclear power is that you have base loads running all the time. Running all the year.

That's different. You compare it to renewables, which have a flat rating input. And another important advantage is that you're carbon-free. That's very important to combat climate change.

A disadvantage is that you need the acceptance in your country for that. And of course you have to solve the waste problem.

UNIDENTIFIED PARTICIPANT: I think there's absolutely a role for nuclear energy. I don't think there's a climate-change solution without it, given that nuclear energy can provide significant base load. Low-carbon electricity that the world desperately needs.

I think utilizing nuclear alongside carbon-capture and storage, and renewable technologies, is absolutely the way that we should be thinking about the challenge.

GRANT: Let's look at some more Fast Facts for you.

Now, nuclear power provides about 6.5 percent of the world's energy, and more than 15 percent of its electricity. The US, France and Japan account for almost 60 percent of electricity generated by nuclear power worldwide.

France is the world leader. 80 percent of the country's electricity comes from nuclear power.

Well, nuclear power plants need less fuel than fossil-fuel plants. One ton of uranium produces more energy than several million tons of coal or several million barrels of oil.

Nuclear power plants produce virtually no greenhouse gases. Nuclear power plants do create low-level radioactive waste. But supporters say that waste is stored safety without harming the environment.

We want to switch gears now, and to talk about a truly renewable fuel and that is biofuels. They come from many different sources.

It's an area that is rapidly developing, and has the attention of some of the biggest names in oil and gas production.

Emily Chang takes us to a unique research facility in Northeastern China.

EMILY CHANG: It looks like just a bunch of green goo. But the algae surging through these pipes could be the key to a low-carbon future.

Inside this greenhouse in Longpong (ph) China, researchers at a private company called ENN are studying how to turn algae into energy or biofuel.

Could you use this to power your car or fly an airplane?

UNIDENTIFIED PARTICIPANT: Anywhere you could use (INAUDIBLE).

Chang: Continental Airlines has already completed a successful test flight using biofuel; in part, created from algae from another company.

Oil giant Exxon -- often accused of lagging in its pursuit of alternative energy -- is now one of many companies jumping on the bandwagon, pouring money into algae-energy research.

UNIDENTIFIED PARTICIPANT: If successful, we see biofuels going into our refineries. Being processed with other petroleum products and coming out, going straight into the distribution system and into gasoline stations around the country.

CHANG: So why is algae so attractive?

Well, it can multiply in size several times a day. It feeds on massive amounts of carbon dioxide or CO2 -- a greenhouse gas. Cleaning up emissions as it grows.

One major step is genetic engineering. These are different strains of algae.

The goal is to cultivate a strain that has the highest oil content, absorbs CO2 the fastest, and therefore grows the fastest.

UNIDENTIFIED PARTICIPANT: What seems odd about ENN is their incredible innovation and creativity. They have developed integrated energy systems, trying a bunch of new energy processes, and putting them all together in very innovative ways.

CHANG: US Energy Secretary Steven Chu even paid ENN a visit during a trip to China. The company already powers 70 medium-sized Chinese cities with natural gas, but wants to introduce a more-efficient system.

UNIDENTIFIED PARTICIPANT: We believe that to develop clean co- technologies, really, you have to introduce renewable sources. To really make the process clean.

CHANG: If it works, in the end, it will be a totally integrated process that leaves the smallest carbon footprint possible, and uses whatever carbon emission that are produced to create more energy.

Emily Chang, CNN, Longpong, China.

GRANT: Well, they're calling it "truly heroic." Working to save the world from millions of tons of carbon dioxide.

Up next, we'll bring you the winner of this year's World Future Energy Summit Prize. Stay with us.

UNIDENTIFIED PARTICIPANT: This month (ph) revealed. John Malkovich travels to Europe for a return to the stage.

JOHN MALKOVICH: Meheheheh

UNIDENTIFIED PARTICIPANT: On and off the rain in Spain, Malkovich reflects on life -- fashion.

MALKOVICH: I'm a little bit of a fabric lunatic.

UNIDENTIFIED PARTICIPANT: And the key to getting into character.

MALKOVICH: I don't really go through a process. To me, it just seems I play it the way it's written.

UNIDENTIFIED PARTICIPANT: Revealed. Next on CNN.

GRANT: Next week, this will be one of the busiest places -- at the World Economic Forum in Davos.

To make the most of what happens there, watch, "The Heavy Hitters," who speak with Richard Quest here.

"Quest," means business. Live from Davos next week on CNN.

We're new every day. All the stuff we run hasn't been seen before. We want to show you the stuff you didn't see anywhere else, but maybe you should've seen!

Well, sustainable energy is on the table here in Abu Dhabi for policymakers, industry leaders and scientists.

Well, they're also handing out awards. They've picked a winner in this year's race for sustainability. Cal Perry has all the details.

CAL PERRY: The Annual World Future Energy Summit in Abu Dhabi. A showcase of the newest in renewable energy technology.

Every year at the summit, the United Arab Eremites presents the Zayed Energy Prize, which recognizes the top innovators in renewable energy from around the world.

This year's winner announced by our own Hala Gurani ; and perhaps a surprise to many, a car company.

UNIDENTIFIED PARTICIPANT: The winner of the 2010 Zayed Future Energy Prize is Toyota Motor Corporation.

UNIDENTIFIED PARTICIPANT: Given for its manufacturing of the Prius -- a car that the award organizers say has saved the world from 7 million tons of carbon dioxide.

We had the opportunity to sit down with the man who accepted the award on behalf of Toyota -- Mr. Kazuo Okamoto, Vice Chairman of the Toyota Motor Corporation.

Talk to us specifically about the Prius, what makes it special, and why it won this award.

KAZUO OKAMOTO: Oh. Prius (INAUDIBLE).

PERRY: The most special thing is that of course, it is environmentally friendly, he tells me. It uses a small amount of fuel -- which is why we believe this is the car of the future.

The Prius may be small, he adds. And so it may not be the most popular car right now in some regions. But we want to make all cars more energy- efficient, including larger ones.

He tells me that by 2020, Toyota wishes to make the majority of their cars hybrid.

PERRY: What does this award mean for Toyota?

OKAMOTO: (INAUDIBLE)

PERRY: "It's an honor to receive this award," he says. "We hope this will just be a trigger to expand in the right direction. For Toyota, this is just the beginning." A beginning that many at this year's energy summit hope to carry into the future.

Call Perry, CNN, Abu Dhabi.

GRANT: And that's it for me, Stan Grant, at the World Future Energy Summit here in Abu Dhabi. "Revealed" is up next. Just after the "Update" headlines.

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