To: Wharf Rat who wrote (8084 ) 7/7/2008 10:57:44 PM From: Wharf Rat Read Replies (1) | Respond to of 24231 Chile's energy plan may include cactus By HEATHER WALSHBloomberg News (I did not make this up) Most-read stories Fort Worth rat factory pesters neighbors Codelco, the world’s largest copper supplier, plans to use a fruit-bearing cactus to help ease a shortage of natural gas in Chile. Methane gas produced from a cactus that dots central and northern Chile will be used to help power Codelco’s Ventanas copper smelter by the end of next year, said unit Chief Executive Officer Alex Acosta. Schwager Energy will derive fuel from the cactus as part of a $70 million project. "This project could really favor our energy matrix," Acosta said recently. "It’s a sustainable solution." Chilean President Michelle Bachelet is seeking to spur the development of new power sources after a natural-gas shortage added to a 41 percent jump in domestic electricity prices in 12 months. A drought that cut power supplies from hydroelectric dams also created the risk of blackouts this year until rain eased dry conditions last month. Chile has the potential to develop power from solar, wind, geothermal and biomass projects, Bachelet said. How it works Schwager Energy plans to use methane from the decomposing cactus plants to produce a natural-gas substitute. The company may eventually supply as much as 30 percent of the smelter’s gas needs, up from a planned 5 percent when the project starts at the end of 2009, Acosta said. The cactus, opuntia ficus-indica, grows quickly and uses little water. It will be raised on land that isn’t suitable for agriculture at a time when increasing production of grain-based fuels have led commodities prices to jump, said Jaime Perry, Schwager Energy’s CEO. The cactus, listed by the U.S. Agriculture Department as providing low protein potential for human consumption, yields a green fruit used in juice in Chile. What it means Codelco’s Ventanas smelter was forced to switch to diesel and other fuels after Argentina scaled back natural-gas supplies starting in 2004. Argentina deepened the cuts last year, increasing Chile’s dependence on diesel fuel and coal for power. The country is seeking to import liquefied natural gas after the shortage created the risk of rationing power to copper mines in northern Chile. Chile is the world’s largest copper supplier. Chile has lagged behind other countries in developing energy alternatives, said Manlio Coviello, an analyst at the United Nations’ Economic Commission. Looking ahead Unlike neighboring Brazil, which was investing in sugar cane-based ethanol in the 1980s to meet its fuel needs, Chile is dependent on oil, coal, gas and hydroelectric dams, Coviello said. The government has provided few incentives for investing in alternative sources. "Chile didn’t make a commitment to renewable when there was time," Coviello said. "So now it’s in a crisis situation. It has to look to the poor cactus for a solution."star-telegram.com