31 Percent Anti-Dumping Tariffs Announced for Chinese Solar Panels

I just heard about this, please read and go to their website to read more about this. By Steve Leone, Associate Editor, RenewableEnergyWorld.com May 17, 2012 | 25 Comments New Hampshire, U.S.A. -- The U.S. Department of Commerce on Thursday announced stiff anti-dumping tariffs of around 31 percent on crystalline silicon solar panels imported from China, leading to a new round of concerns on how the duties will impact the growing American solar industry. In its preliminary determination, the DOC set duties at 31.14 percent for Trina, 31.22 percent for Suntech and 31.18 percent for other Chinese solar manufacturers that chose to participate in the investigation. The companies that chose not to participate were hit with a 250 percent tariff. The tariffs will be retroactive and be applied to panels that were shipped from as far back as about the middle of February 2012. A final determination must still be made, and the tariff rates can still be adjusted upward or downward. But the ruling gave an anxious industry a better sense of the implications of the trade case. And the numbers that came out were much higher than many expected. Thursday's announcement was for anti-dumping tariffs and it was the second of two duties set by the DOC that directly stemmed from a trade complaint filed by SolarWorld’s American subsidiary. DOC officials will now confirm the information provided by the Chinese government and the Chinese manufacturers that chose to participate. Final determinations are expected to be made for both tariffs in late July, though an annoucement may not come until September. In March, the Department of Commerce announced a preliminary determination that set relatively modest countervailing duties that essentially measure the level of subsidies and benefits coming from the Chinese government to Chinese crystalline silicon panel manufacturers. The countervailing duties were applied on three levels: 4.73 percent applied to Trina, 2.9 percent to Suntech, and 3.59 percent to all others. That had been a welcome relief for many in the solar industry, especially the installers who have come to base their business models around low-cost panels. But the feeling was short-lived with the announcement of the countervailing tariffs, which will be added to the anti-dumping tariffs announced on Thursday. The two together are certain to make Chinese solar panels much more expensive. The ruling could add about $0.30 a watt to the price of a panel. Chinese companies are expected to set up workarounds like tolling in which they send panels through another country, or even set up remote manufacturing facilities outside their country. Tolling is expected to add about $0.06 to $0.08 per watt. The Background In a trade complaint filed in October, SolarWorld's American subsidiary and six other solar panel manufacturers claimed that Chinese companies are receiving an unfair level of subsidies from the Chinese government and that they are then dumping their products at below the cost of production into the American market. This, they contend, is stifling solar panel manufacturing in the United States. The case made by the Coalition for American Solar Manufacturing (CASM) has been folded into the growing political narrative that America must reclaim its ability to lead in the global arena of manufacturing and innovation. On the other side, the Coalition for Affordable Solar Energy (CASE) says that the overriding goal is to make solar energy as competitive as possible. Low-cost Chinese panels have figured prominently in this race to make solar energy competitive with fossil fuels. Panel prices have dropped by 50 percent in just the past year, and that growth has spurred an installation boom that many in the industry feel is unsustainable if prices spike. Industry Reaction Jigar Shah, President of CASE: “Today SolarWorld received one of its biggest subsidies yet – an average 31% tax on its competitors. What’s worse, it will ultimately come right out of the paychecks of American solar workers. Fortunately, these duties are much lower than the 250% tax that SolarWorld originally requested. This decision will increase solar electricity prices in the U.S. precisely at the moment solar power is becoming competitive with fossil fuel generated electricity. At the same time, CASE recognizes that today’s decision is ‘preliminary.’ Between now and a final decision before the end of the year, there are many issues that will be addressed and whose resolution would lead to a significantly lower tariff. CASE will continue to fight SolarWorld’s anti-consumer and anti-jobs efforts to ensure a better result for America’s solar industry.” Rhone Resch, President and CEO of the Solar Energy Industries Association: "The solar industry calls upon the U.S. and Chinese governments to immediately work together towards a mutually-satisfactory resolution of the growing trade conflict within the solar industry. While trade remedy proceedings are basic principles of the rules-based global trading system, so too are collaboration and negotiations. Importantly, disputes within one segment of the industry affect the entire solar supply chain — and these broad implications must be recognized. In addition, the U.S. solar manufacturing base goes well beyond solar cell and module production and includes billions of dollars of recent investments into the production of polysilicon, polymers, and solar manufacturing equipment, products which are largely destined for export. If the U.S.-China solar trade disputes continue to escalate, it will jeopardize these U.S. investments." Gordon Brinser, President of SolarWorld: "Today, SolarWorld and the many industry players who embrace the sustainable efficiency gains and price declines that come from fair competition can take heart that the U.S. government is standing up against Big China Solar,” said Gordon Brinser, president of SolarWorld Industries America Inc. and leader of the Coalition for Solar Manufacturing (CASM). “Commerce’s careful measures could help thwart China’s illegal drive to control the solar market and supplant manufacturers and jobs in America, the very country that invented, pioneered and innovated solar to today’s mainstream viability.” Steve Ostrenga, CEO Helios Solar Works: "Commerce’s ruling in the SolarWorld case is a bellwether decision. It underscores the importance of domestic manufacturing to the U.S. economy and will help determine whether the country will be a global competitor in clean technologies or outsource them China. It is also critically important for thousands of U.S. workers.” Andrew Beebe, COO of Suntech: “These duties do not reflect the reality of a highly-competitive global solar industry. Suntech has consistently maintained a positive gross margin as revenues are higher than our cost of production. We will work closely with the Department of Commerce prior to their final decision to demonstrate why these duties are not justified by fact." Sen. Sherrod Brown, D-Ohio: "The Commerce Department’s decision today shows that trade enforcement matters, and is an important step towards combating China’s multiple, massive, and illegal trade violations. It’s been proven that China isn’t competing in the clean-energy marketplace — it’s cheating, and its unfair solar trade practices have already resulted in the announced the loss of thousands of good-paying U.S. manufacturing jobs. I applaud the Commerce Department for working to hold China accountable for its unfair solar subsidies and dumping practices. If we want to have a solar manufacturing industry, we need to utilize trade enforcement tools to combat the massive export subsidies other countries provide. This decision will help establish a fair and level playing field for American manufacturers, including the many solar manufacturers in Northwest Ohio.” The Fallout Many in the industry have been fretting that a steep penalty on Chinese panels would stifle the rate at which solar has been growing in the American market. New tariffs, they say, have the potential to derail the downward costs that have made solar a more appealing option to investors. As a result, the industry could see significantly less growth in the years ahead. And that means fewer American jobs. Melanie Hart and Kate Gordon of the Center for American Progress refuted that notion this week, arguing instead that not challenging legal practices sets up a scenario in which China’s leaders will dictate not only the price of solar panels that dominate the open market, but they will also choose which types of solar technologies their government will support. This, they say, could lead to stunted growth in both installations and innovation. “[O]nce Chinese companies drive out their competition from the solar manufacturing sector, they will immediately start raising prices to increase their profits and start to wean off of government subsidies,” they wrote this week. “We are currently seeing a similar pricing pattern in the global rare earths market. China has around one-third of the world’s rare earth supplies but controls 90 percent of the global market, primarily because lax regulatory oversight enabled Chinese companies to mine cheaply and price everyone else out of the market.” In an op-ed penned for the Boston Globe, Tom Gutierrez, CEO for New Hampshire-based GT Technologies, wrote that the trade dispute has done little to help build a stronger American solar market. All it has done, he said, is force Chinese manufacturers to find new ways to enter the U.S. with their low-cost panels. “Many Chinese manufacturers are simply redirecting their flow of products through other countries to avoid the US-imposed barriers, or in some cases the location of their production, and in all likelihood they will continue to provide the global market with competitively-priced solar panels,” he wrote. “This action by the U.S. government merely forced Chinese companies to find new ways to innovate in order to compete. In all likelihood the Chinese will be just fine. In fact, we may be transforming domestic Chinese players into more formidable forces by encouraging their global diversification and expansion. But what about the U.S. solar industry?” The debate has extended far beyond the solar industry and has become a political lightning rod that has shaped some unexpected alliances. For an industry that depends on liberal-leaning policy support, the free market principles touted by the Coalition for Affordable Solar Energy have generally played strongest in conservative circles. Democrats, meanwhile, are pushing a “get-tough-on-China” strategy that threatens to undermine the low-cost goals of much of the industry. Just this week, two Democrats — Sens. Sherrod Brown of Ohio and Charles Schumer of New York — introduced a bill aimed at China that would exclude all foreign-made solar panels from a 30-percent tax credit unless the modules passed a threshold of domestic manufacturing. Content Technologies Solar Energy, Solar Tech 25 Reader Comments Comment 1 of 25 maurymarkowitz May 17, 2012 Big smiles at LDK I suspect... their plant in Welland Ontario just ramped production of their 260 monos at a pretty competitive price. Do you think the tariff will apply to panels assembled in Canada? Comment 2 of 25 william-fitch-22587 May 17, 2012 Hi: Well if you are smart, when you see the snowball starting to gain momentum rolling down the mountain, you start slowing it down before it can run away. This is the attitude of the O&G industries regarding solar elect. They know their fate in the long run in that solar elect can, when coupled with electric transportation, seal their coffin. Saw an interesting TED talk with Amory Lovins. His new Book, "Re-Inventing Fire", was well thought out and definitely spells the death of O&G and Nukes for our major energy needs in the not to distant future.... .....Bill Comment 3 of 25 jens-stubbe-65745 May 17, 2012 Sad panic leading to wilful stupidity. Fight fair instead and protect the interest of americans. Much more jobs are lost by delaying solar installations in USA than you can short term salvage in the doomed US PV panel industry. House owners and small businesses will also be prevented from producing their own PV power at an attractive price point. 31% taxation will only buy little time. Everyone that makes a living from installing PV can look forward to a slower year. Comment 4 of 25 robhilbun May 18, 2012 The Chinese goverment wants to subsidise the solar industry. Let them. What does the US government want to do, oh yeah tax it 31%......... nice work, maybe we can set up NSA check points or an international spy ring to make sure they aren't smuggling any solar pnls into our coal/nuclear/dam building grid. Comment 5 of 25 sam-salamay-7842 May 18, 2012 This craziness stems from our government and its inaction to subsidize the solar industry, period. Oil, gas and coal wins again and their subsidies continue. What the hell is wrong with us that our people have no say in where we must go, to a clean energy future. Keystone will be built, drilling in the Gulf continues and our land will frack-on. And i voted for BO so he can keep BO, BG and BC profit for the 1%. Comment 6 of 25 joe-zorzin May 18, 2012 I don't care where the panels come from- only where they're installed, which should be on roofs, not in huge, landscape covering, solar "farms". Comment 7 of 25 william-fitch-22587 May 18, 2012 Hi #4: Don't worry about the NSA. They are solidly in place in Utah with their new 'bottomless' storage facility, monitoring every single American to American email, text, tweet and phone call looking for anyone who wants to upset the plans of the puppeteers. THe Red and Blue is just a SHOW to make the public think they have a peaceful choice in their future by continuing the illusion of hope. In 'Hunger Games', the scene about hope was done rather well I thought. Somewhat interesting that the main reason in the movie given for the games to continue (Hope), keeping the Dystopian world intact, reflects so accurately our current reality.... .....Bill Comment 8 of 25 sam-salamay-7842 May 18, 2012 #7, exactly. After our HOPES were squashed by Obama, our nation is helpless. The GOP and Dems are exactly the same; to feed the 1%er's that power our energy and control policies. Third parties, furgettaboutit...maybe the only way to win would be to abolish the GOP, but with the PACs and Supreme court, it would nearly be impossible unless a powerful clean energy group such as e2.org gets recognized in the mainstream and enacts a mandate for Americans to embrace a shift from fossil fuels to renewables. Romney is a scourge to Americans, having The support of everything that is wrong for our future...Obama can do it, but only if the Dems control both houses of Congress... Comment 9 of 25 synergy99 May 18, 2012 Does anyone else feel like they're reading Atlas Shrugged as they read this article? Comment 10 of 25 jens-stubbe-65745 May 18, 2012 sam-salamay-7842 sorry to inform you that the 31% was proposed and supported by democrats. Do not look for government to ensure the transition from fossil to renewable. Arnold Schwarzenegger is total pro renewable and is very well informed on the subject, which he has made a personal crusade. Believe or not former president George Bush is also keen on renewable and knows a lot about the subject despite his oil background. Many top democrats has also been keen supporters but none have been able to put the pedal to metal and deliver on all the great technologies that was invented by americans in the last 60 years. Carter was laughed out of office and since no president has made renewable energy policy consistent and strategic - its always last minute, always changing and far less supported than the fossil industry. The average Joe wants big cars and cheap gas, so thats what presidents delivers. Comment 11 of 25 sam-salamay-7842 May 18, 2012 #10, it's a game whereas each party says what the people want to hear and the other side kills it. As a solar and biofuels entrepreuner, there is no sustainability for our technologies to prosper as is with the engrained fossil players. They have the money and they use it well. My belief is we must have unabated leadership, so the abolishment of the GOP control must be realized for a chance that clean technologies, creating jobs and re-establishing shared wealth for all Americans will happen in our lifetime. Otherwise, same-old same-old... Trying to save www.mxsolarUSA.com here in NJ and raising funds as a founder of www.homegrownbiofuels.com Comment 12 of 25 jens-stubbe-65745 May 18, 2012 I think americans will continue to become richer in the future and I am certain that you will be based on renewable energy. I doubt more about how much af the tech that will be homegrown. So many great technologies was invented in US and so few became worldwide or even US commercial hits. All presidents have invested heavily in controlling oil and have even subsidized oil on top of that. Nuclear was and is also heavily subsidized. Since renewables arrived they have been rediculed and not at all nurtured like they should have been. Bill Gates the guy who believed that internet was a fad refer to solar and wind as cute stuff and invest his money in nuclear. Comment 13 of 25 william-fitch-22587 May 18, 2012 Hi #11: You are missing the point (At least as delivered in your posts). Red and Blue, with few exceptions, are OWNED by the same Puppeteers. They have been going after this agenda for 50 + years. You have to remember, the main fear of the big "R" for the Puppeteers is not the masses dieing or even some of them. It is the possibility of uncorrelated transfers of wealth. This is the real fear. People come and go but wealth and its relative area of penetration spans centuries. Once lost, it might NEVER be recovered. It is this change that can cause a REAL shift in how the world functions for generations upon generations, even centuries... .....Bill Comment 14 of 25 dpickard May 18, 2012 I'm not all that educated about this subject, but when reading the decision yesterday, I want to clalify that this not only effects solar panels coming out of China but solar cells as well. That means that many 'American made' panels (ie: tenKsolar and Motech) will have to pay the 31% tariff. So in my thinking, this decision will effect the prices of all panels. Are any solar cells made in America? Comment 15 of 25 hawkster May 18, 2012 Eliminating the Tax credit for foreign made panels make sense. it should have been done a long time ago. Comment 16 of 25 simpleenergy May 18, 2012 Who gets the 31%? What will they do with it? That 31% is taken straight from the end CONSUMER. The module makers won't sell at a 31% loss. Make no mistake. This tariff is aimed at making money off Americans. How exactly does this help the 'Americans'? Politicians trying to 'fix' things screwing them all up with massive 'unintended consequences.' This is no different from the protectionism of Detroit for this whole past generation. (we were protected from Japan) The only thing that finally got Detroit producing again is the actual collapse of the big three. Prediction 1: American solar manufacturing is doomed. This is a 'cornered dog' attitude and strategy. Because they have taken this 'protectionist' strategy the only thing that will save them is their ultimate collapse. Prediction 2: Solar installations in America will continue to progress IN SPITE of our ridiculous 'regulators.' (modules are made in Thailand, Philipines...., etc.) The marketplace is like a football field. The 'gubmnt' is a huge Rabid elephant in the middle of the football field stomping whoever it wants. The game goes on because most people stay well clear and learn how to avoid it. Those who depend on the elephant will eventually die a bloody death (of their own choosing). Comment 17 of 25 jens-stubbe-65745 May 18, 2012 Hi Simpleenergy seems you have summoned the important points nicely. I almost forgot Detroit. US is today a net importer of cars and carparts - almost incomprehensible in a country where Henry Ford revolutionized the car industry. Look at it this way in a few months time the panel price from China drops the needed 31% and this travesti will only delay the necessary transition and tax american home owners. What puzzles me the most is how the "fact" that China use subsidies was established. Comment 18 of 25 john-carr-174305 May 18, 2012 Not all business is good business. Many of you get very angry when the Federal Government steps out and fulfills one of their primary functions: The defense and protection of the American people. American arms dealers suffer when wars end. Shall we start wars for the sake of business? Not all business is good business. Destroying American industry through systematically subsidizing competing Chinese companies is a direct threat to the U.S. It is the US government's mandate to protect its citizens. Using these tactics creates sympathy for the abuser. But it is no different than detonating a bomb in the factory after hours. The industrial base is destroyed just the same. Don't mistake cheap for doing us a favor. Not all business is good business. You want to buy a US made solar panel? You can buy them at a very competitive price from 1Soltech in Farmer's Branch, Texas. www.1soltech.com The tariff money should be used to increase the 30% subsidy to 50% for American end users installing solar, with an American Made stipulation. That way, we don't end up getting taxed and the whole thing is a windfall for US Consumers. No image available Comment 19 of 25 Anonymous May 18, 2012 #14 "Are any Solar Cells made in the US" ABSOLUTELY! The manufacturing companies represented by CASM produce their own cells in the US. Anyone who feels this is the doom of the US solar industry has the foresight of about 3 days. These are products with 25 YEAR warranties, not kids toys, or textiles that last 3 years. Long term, meaning our kids and theirs, energy independence does not mean relying on foreign entities for our energy resources. Am I frustrated that the Chinese government took significant action to promote a renewable energy source Industry and the US did not? OF COURSE! 1. If you think Panel prices are going to go up by 31% across the board, you are not paying attention, if panel prices rise by more than 10%, I would be amazed. 2. Many seem to forget that the industry and installations were growing at a 35-40%/year rate BEFORE the module dump started in '09. 3. The affordability of many of the system now have far less to do with the price of the modules dropping, and far more to do with the Financing that has developed around the FTC for installations. 4. Claiming that the Solar industry only grew because of the drop in module prices, just tells me how long you have been in the industry and how little you actually know about it. (even the years when module prices went up in '04-'06, installations still grew) 5. Simple...you are being a sensationalist conspiracy hound. A. 31% is supplied to the government (reducing our debt). B. here's an idea, instead of the American consumer paying 31% higher than the dumped prices of modules from China, they pay 10% more and buy a high quality American made panel? Or even better yet, they pay 0% more, Installers stop taking 30% margins on the products, the inverter companies work on dropping prices, the installers become more efficient at installations? Prediction 1: US PV industry isn't going anywhere. Prediction 2: the US will have to remember how to make our own stuff again FE Comment 20 of 25 william-fitch-22587 May 18, 2012 Hi: #16 'Who gets the 31%' They will give it to the O&G companies for their subsidies. #18 "Shall we start wars for the sake of business?" We already do. You don't actually believe that poor un-funded Middle East regular people can terrorize the USA do you?? One of the main reasons to start wars is to show the people there is a need for Government protection and to fund the MIC. .....Bill Comment 21 of 25 robhilbun May 18, 2012 jon-carr from above ...... yes if the gov put the 31% tarriff into a 50% tax rebate on solar installations,(which they probably won't), we would be penalizing the Chinese for rebating manufacturing and now we are rebating the US install with thier money .... this is why no one likes us in this world, because we are represented by unscupulous business/gov folks who want your natural resources and our hired mercenaries who will kill you if you don't give them to us. Comment 22 of 25 george-reynoldson-33887 May 18, 2012 Political scientists for many generations will likely ignore this tariff spat and instead record May 17, 2012 as "Gaia's Bad Day". This is because the importance of the 31% tariff to trade will be minimal compared to the fact that it was announced (as in politically covered) almost simultaneously with Energy Secretary Chu's "solar platitudes" at the World Renewable Energy Forum in Denver and the release of API CEO Jack Gerard's "to do list" to both GOP and DEM platform committees on May 16 along with the simultaneous passage of H.R. 4381, H.R. 4382, and H.R. 4383 which opened public lands to the US hydrocarbon industry... all supported by three GOP Colorado congressmen: Rep. Scott Tipton, Rep. Mike Coffmann, and Rep. Doug Lamborn. No doubt many in Beijing, Houston, and Riyadh admired the genius of yesterday's "polit-strategy" while US politicians undermined US national security, domestic land management and citizen's right to defend both in three pieces of Congressional legislation. (see http://thinkprogress.org/climate/2012/05/17/485299/fulfilling-apis-wish-list-colorado-republicans-offer-more-bills-to-throw-open-public-lands-to-drilling/). Especially significant in future political science textbooks will be the quietness of Jack Gerard's Congressional wish list (shh), "American Made Energy: Report to the Platform Committees" which supports legislators who, under the guise of patriotism, will obediently: (1) Open the Alaska National Wildlife Refuge 1002 Area; (2) Bulldoze portions of the Rocky Mountains; (3) Lift the drilling moratorium in New York, and (4) Accelerate timely "review" of projects on federal land. The 100th year anniversary of Gaia's Bad Day (May 17, 2112) in New York may be celebrated by die hard financial wizards and speculators in row boats trying to navigate their way to Wall Street and THE silence promoter, Fred Koch (Joseph Stalin's oil guy) will have a featured chapter all his own in most 2112 political science textbooks. Comment 23 of 25 sam-salamay-7842 May 18, 2012 Especially significant in future political science textbooks will be the quietness of Jack Gerard's Congressional wish list. Exactly. Everyone is paid-off. Everything is quietly pushed through with the disguise of energy independence while fossil keeps rolling-on. No leadership, which is why we need to bounce the GOP for an opportunity for the DEMS to lead, representing the majority of Americans to work, live in a clean environment and sharing prosperity, one community at a time. Thank you # 22 for pointing out Congress doing "its thing"... Comment 24 of 25 peter-bradshaw May 18, 2012 Comment 10 reminds me that, trying to toss out my 46-uears-worth of technical journals (mainly on the semiconductor industry that I worked in) I found some items in 1980 discussing some innovations in PV technology that were likely to bear fruit in the next few years. Then poor (technical geek) Carter (a nuclear submarine officer, who installed solar panels on the White House) was replaced by grandfather Reagan, who removed the panels, and essentially brought PV progress to a halt. Maybe the world will soon see the relative heros here the same way I do. My PV panels were made by BP, before they gave up trying to deflate the industry, but are still making me money, via the 70% of our electric consumption they have provided over the last 3 years. Sometimes the road to heaven is paved with bad intentions? Let us all hope that the predictions in above comments that the 31% tariff will be undermined by other cost reductions works out one way or another. Comment 25 of 25 onegreenday May 18, 2012 Did you see the video of the Chinese panel maker? The assembly line was no sweatshop. They worked at a regular pace. They claim the panels were cheaper because of labor costs but it looked like very little labor. Read more at: http://www.renewableenergyworld.com/rea/news/article/2012/05/31-percent-anti-dumping-tariffs-announced-for-chinese-solar-panels Top of blog:

US claims 'unprecedented' success in test for new fuel source

By Miguel Llanos, msnbc.com Could the future of cleaner fossil fuel really be frozen crystals now trapped in ocean sediments and under permafrost? Backed by an oil industry giant, the Obama administration recently tested a drilling technique in Alaska's Arctic that it says might eventually unlock "a vast, entirely untapped resource that holds enormous potential for U.S. economic and energy security." Some experts believe the reserves could provide domestic fuel for hundreds of years to come. Those crystals, known as methane hydrates, contain natural gas but so far releasing that fuel has been an expensive proposition. The drilling has its environmental critics, but there’s also a climate bonus: The technique requires injecting carbon dioxide into the ground, thereby creating a new way to remove the warming gas from the atmosphere. Advertise | AdChoices "You're storing the CO2, and also liberating the natural gas," Christopher Smith, the Energy Department's oil and natural gas deputy assistant secretary, told msnbc.com. "It's kind of a two-for-one." The Energy Department, in a statement last week, trumpeted it as "a successful, unprecedented test" and vowed to pump at least $6 million more into future testing. "While this is just the beginning, this research could potentially yield significant new supplies of natural gas," Energy Secretary Steven Chu announced. ConocoPhillips, the oil company that worked on the test at its oil facility in Alaska's North Slope, was hopeful the technique could become economically feasible for producing natural gas, a fuel that's much cleaner than petroleum. "Many experts believe that methane hydrates hold significant potential to supply the world with clean fossil fuel," spokesman Davy Kong told msnbc.com. "The completion of this successful test of technology is an important step in developing production technology to access this potential resource while sequestering carbon dioxide." But even the CO2 bonus doesn't convince environmentalists worried about a reliance on fossil fuels -- the key source for manmade carbon dioxide emissions. "Finding new ways to produce fossil fuels doesn't change the fact that we can't transfer to the atmosphere all the carbon in the fuels we already have without causing catastrophic climate disruption," Dan Lashof, a climate analyst with the Natural Resources Defense Council, told msnbc.com. "Rather than perpetually seeking new sources of fossil fuel, our federal research dollars should be going into carbon-free energy sources" like solar and wind, added Brendan Cummings, public lands director at the Center for Biological Diversity, a group that's tied climate impacts to its petitions to protect wildlife. Cummings also worries about inadvertent releases of methane, which is even more powerful as a warming gas than CO2. Alaska's Arctic is the U.S. area "most under stress from warming," he added. "Even if we could safely develop and install infrastructure there, we're still industrializing an area that essentially should be left alone." Methane hydrate fans include Vladimir Romanovsky, a permafrost expert at the University of Alaska-Fairbanks. It has "great potential and not much danger" compared to conventional natural gas, he said. "Extracting energy and sequestering CO2 is win-win situation." Sen. Lisa Murkowski of Alaska, the ranking Republican on the Senate energy committee, noted that future testing needs to look at issues like soil stability, but overall she was bullish. "If we can bring this technology to commercialization, it would truly be a game changer for America," she said in a statement. "Taken together, U.S. lands and waters contain a quarter of the world’s methane hydrates -- enough to power America for 1,000 years at current rates of energy consumption," her office added. Related: US wants 'fracking' on fed lands to list chemicals Alaska alone could hold 600 trillion cubic feet of methane hydrates onshore, the office stated, citing U.S. Geological Survey estimates. That's potentially three times more than the known natural gas deposits in Alaska. The state also estimates a whopping 200,000 trillion cubic feet of methane hydrates lie under Alaskan waters. That reflects that fact that the vast majority of methane hydrates -- the U.S. Geological Survey estimates 99 percent -- are in ocean sediments. Read more at: http://usnews.msnbc.msn.com/_news/2012/05/05/11522433-us-claims-unprecedented-success-in-test-for-new-fuel-source?lite Top of blog: