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     Fourth Report on Implementation of the Energy Security Initiative
           Prepared for the 30th Meeting of the APEC Energy Working Group
                      Ulsan, Republic of Korea, 24-25 August 2005


1. INTRODUCTION

This report provides background to the APEC Energy Security Initiative (ESI), including the
directions of APEC Economic Leaders and Energy Ministers, and outlines the progress made
so far in implementing the ESI.

This report should be read in conjunction with the following documents, available on the
EWG web-site (www.ewg.apec.org):
   APEC Energy Security Initiative: Recommendations endorsed by the Fifth Meeting of
    APEC Energy Ministers, July 2002, Mexico City;
   Energy Security Initiative Implementation Plan, August 2003;
   APEC Action Plan to Enhance Energy Security, October 2003;
   Ministers’ Declaration, Sixth Meeting of APEC Energy Ministers, June 2004.
   CAIRNS Initiative, November 2004.


2. BACKGROUND TO THE ENERGY SECURITY INITIATIVE

In September 2000, the Senior Officials‟ Meeting discussed what action APEC could take to
respond to oil price volatility and asked the EWG to analyse the situation and make
recommendations on issues surrounding energy security. A series of workshops were held in
2001, leading to the development of the Energy Security Initiative (ESI), which was endorsed
at EWG22 in Port Moresby and by APEC Economic Leaders in Shanghai in 2001.

The ESI comprises measures to respond to temporary energy supply disruptions and longer
term policy responses to address the broader challenges facing the region‟s energy supply that
are practical in a policy context and politically acceptable. The ESI also addresses energy for
sustainable development by strengthening the security and reliability of affordable energy.

At their fifth meeting in Mexico City, July 2002 (EMM5), APEC Energy Ministers directed
the EWG to “in the short term, undertake work on improving monthly oil data, where
available; real time emergency information sharing; the option of oil stocks among interested
Members; considering a feasibility study on possible joint stocks among interested Members;
and organising dialogues on sea lane security issues. In the longer term, look into energy
exploration and development; alternative fuels; high efficiency vehicles; and more energy-
efficient modes of public transport”.

In their Statement on Fighting Terrorism and Promoting Growth at Los Cabos, Mexico, in
October 2002, APEC Leaders pointed to the Energy Security Initiative as one of a number of
collective activities underway in APEC to advance counter-terrorism commitments. In
particular, Leaders noted efforts underway in APEC to “advance the Energy Security
Initiative to address disruptions in energy markets”. The APEC Economic Declaration at
their Los Cabos meeting “endorsed the strengthening of energy security in the region under
the mechanism of the Energy Security Initiative”.


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At SOMII in 2003 the APEC Senior Officials “instructed the EWG to develop an
implementation plan, including timeframes where appropriate, for the Energy Security
Initiative by the time of SOMIII. The ESI Implementation Plan should incorporate the energy
security concerns of APEC Member Economies into its timeframe. The development of the
ESI Implementation Plan will be one of the deliverables to the AELM”. The Energy Security
Initiative Implementation Plan was presented to the APEC Senior Officials at SOMIII in
August 2003. SOM endorsed the Plan and agreed to present it to APEC Ministers and
Leaders for approval.

At their meeting in Bangkok in October 2003, APEC Leaders agreed to “accelerate the
implementation of the Energy Security Initiative by endorsing its Implementation Plan and, as
appropriate, a new Action Plan to enhance regional and global energy security”. The Action
Plan includes measures in the areas of natural gas trade, energy emergency responses, energy
investment, hydrogen and methane hydrates.

At their sixth meeting in Makati City, June 2004 (EMM6), APEC Energy Ministers
responded to the directions of APEC Leaders. Ministers delivered a number of new
directions to the EWG, in the areas of emergency preparedness, energy investment, energy
efficiency, diversification and innovation.

At EWG28 (Australia, November 2004), Members discussed how to implement the directions
from EMM6 and endorsed a number of activities under both the short- and long-term
elements of the ESI. Members also developed the Comprehensive Action Initiative
recognising the need for strengthening the APEC Energy Security Initiative – energy security,
sustainable development and common prosperity (CAIRNS) Initiative for presentation to
APEC Ministers and Leaders.

The relevant sections of the Ministers‟ and Leaders‟ Declarations are excerpted below.

16th APEC Ministerial Meeting, Santiago, Chile, 17-18 November 2004

   “Ministers noted the impact of current high oil prices on the economies of APEC and emphasized
   that access to adequate, reliable and affordable energy is fundamental to achieving the region's
   economic, social and environmental objectives.

   Ministers acknowledged the achievements of the APEC Energy Security Initiative and supported
   the outcomes of the APEC Energy Ministers' meeting in June this year, including their call for
   adequate supply to help stabilize the oil market, and efforts to enhance energy security by
   preparing for energy supply disruptions, facilitating energy investment, using energy more
   efficiently, expanding energy choices and capitalising on technological innovation. They also
   noted the outcomes of the APEC Meeting of Ministers Responsible for Trade in June calling for
   closer cooperation between Energy Ministers and Trade Ministers. In this context, they instructed
   Senior Officials to work with the Energy Working Group to examine the impact of high energy
   prices on trade and economic activity in the region.

   Further, Ministers endorse the "Comprehensive Action Initiative recognizing the need for
   strengthening the APEC Energy Security Initiative - energy security, sustainable development
   and common prosperity" (CAIRNS Initiative), which aims to improve data transparency, energy
   emergency responses, energy investment, energy efficiency, the development of renewable and
   alternative energy, and to promote energy for sustainable development and poverty reduction.”

12th APEC Economic Leaders’ Meeting, Santiago, Chile, 20-21 November 2004

   “As a response to global concerns about high oil prices, and in keeping with our commitment to
   promote energy security, sustainable development and common prosperity within the APEC
   region, we instructed Energy Ministers to continue to implement and enhance the APEC Energy
   Security Initiative.” [Leaders also endorsed the Declaration of APEC Ministers].


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At EWG29 (Hanoi, March 2005), Members agreed to a range activities to further
implementation of the ESI, including a proposal for an APEC project to assess „The Impact of
High Oil Prices on Trade in the APEC Region‟, which will report to APEC Energy Ministers
at their seventh Meeting in October 2005.

The remainder of this report describes the progress made to date to implement previous
directions and decisions relating to the ESI.


3.       SHORT-TERM MEASURES

3.1      Assess the economic implications of high oil prices on trade in the APEC region
         (CAIRNS Initiative)

Direction

     The assessment will commence in 2005 and be undertaken in close cooperation and with
      the support of the APEC business and research communities. It will analyse the impact
      of several scenarios for oil prices on key economic indicators in the APEC region,
      including trade in goods and services.

Progress

At their meeting in Santiago in November 2004, APEC Ministers directed Senior Officials
and the Energy Working Group to examine the impact of high energy prices on trade and
economic activity in the region.

The project EWG09/2005, „The Impact of High Oil Prices on Trade in the APEC Region‟
received approval for urgent APEC funding in April 2005. A consultant was selected to
commence the project in June 2005, and outlined its approach at the 2nd EMM7 Steering
Committee on 22 July 2005.

The project seeks to:
     quantify the effects of sustained increases in oil prices on macroeconomic indicators and
      patterns of trade in the APEC region;
     undertake detailed economic modelling to quantify these effects under a number of oil
      price scenarios for goods and services traded within the APEC region; and
     examine the extent to which trade and investment barriers limit the capacity of regional
      markets to respond to changes in energy price inputs.

A draft of the project report will be presented at EWG30, and will be completed in time to
report to EMM7 in October 2005, and to the APEC Committee on Trade and Investment and
Economic Committee in September 2005.

3.2      Joint Oil Data Initiative

Directions from EMM6

     Continue to build the capacity of member economies to collect data and report to the
      Joint Oil Data Initiative.


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Progress

The Joint Oil Data Initiative (JODI) is intended to improve transparency in the global oil
market by making improved data available to participants. The Exercise is undertaken jointly
by six organisations – APEC, International Energy Agency, European Union, Latin-American
Energy Organization, Organisation of Petroleum Exporting Countries and the United Nations
Statistical Division. It has been in permanent operation since September 2002. APEC‟s
contribution to JODI is managed by the Expert Group on Energy Data and Analysis.

All Member Economies have contributed data to JODI and although improving, variations in
data quality, timeliness and completeness continue. As at March 2005, twelve Economies
submit data within one month, four within two months, and two reporting after two months.
Globally, approximately eighty economies comprising 93% of global oil production and 95%
of consumption have contributed to the database.

The EWG, through the Asia Pacific Energy Research Centre (APERC) and the EWG Expert
Group on Energy Data and Analysis, provides Member Economies with capacity building
services to support the collection and reporting of data. For example, EGEDA‟s Coordinating
Agency has worked with several Member Economies to improve their data collection and
reporting capacity, and Japan has hosted two International Workshops on Energy Statistics in
the APEC Region.

3.3      Sea-lane Security

Directions from EMM6

     Monitor efforts to strengthen sea-lane security and respond as appropriate.

Progress

In April 2002 APERC conducted a sea-lane disruption simulation exercise, which identified
necessary actions to prepare Member Economies to address disruptions. In August 2002, the
EWG Lead Shepherd wrote to the President of the International Maritime Organisation (IMO)
requesting consideration of upgrading the navigational aids in the straits of Sunda and
Lombok. The IMO indicated its willingness to provide technical assistance upon the request
of relevant national governments. The Lead Shepherd also wrote to the Chair of the APEC
Transportation Working Group outlining the conclusions of the Sea-Lane Disruption
Simulation Exercise. The Transportation Working Group welcomed the offer of future
engagement with the EWG on this issue.

The EWG acknowledges that considerable work to enhance maritime security is being
undertaken by the IMO and the Transportation Working Group. At EWG27 (March 2004),
members agreed that the EWG should continue to monitor the implications of this work for
the transportation of energy by sea.

3.4      Real-Time Emergency Information Sharing

Directions from EMM6

     Implement the Real-Time Emergency Information Sharing System.


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Progress

The Real-Time Emergency Information Sharing System (RTEIS), developed by Japan, was
successfully trialled with several Member Economies in February 2004 and was endorsed for
implementation at EWG27 (Beijing, March 2004). APERC will serve as System Coordinator
and Secretariat.

The RTEIS is an internet-based service which provides real-time communication in the form
of a chat-room, and data sharing in the form of a bulletin board. The RTEIS also provides
access to APEC‟s Joint Oil Data.

Member Economies have been asked to nominate Emergency Contacts responsible for
operating the RTEIS and who will determine, in consultation with EWG Members, the type of
information to be shared among Members in the event of an energy emergency affecting the
APEC region. To date, fifteen economies have nominated Emergency Contacts.

An Australia-funded project to develop an RTEIS Operational Manual was completed in
August 2005. The Manual acts as both a guide to using the RTEIS, and as an emergency
management framework, listing the policies and definitions for emergency notification and
escalations.

At EWG30, Japan will report progress of the RTEIS, and Australia will report on the RTEIS
Operational Manual.

3.5      Energy Emergency Response

Directions from EMM6

     Commit to having emergency mechanisms and contingency plans in place, appropriate to
      our individual economies‟ energy situations, that will provide us with the capacity to
      respond to energy emergencies, including oil supply disruptions, and damage to our
      infrastructure systems.

     Commit to establishing and maintaining, as appropriate to the needs of individual
      member economies, readiness to respond to oil market disruptions and oil market
      volatility by sharing data, information and experiences, and to cooperate and
      communicate as appropriate during emergencies.

     Encourage member economies to move towards best practice as identified in the „Best
      Practice Principles for the Establishment And Management Of Strategic Oil Stocks‟;
      encourage consideration of the feasibility of joint stocks among interested parties; and
      encourage continued cooperation under the Earthquake Response Cooperation Initiative.

Progress

APERC has undertaken several projects on the subject of oil supply security including:
Energy Security Initiative: Emergency Oil Stocks as an Option to Respond to Oil Supply
Disruptions (2002) and Energy Security Initiative: Some Aspects of Oil Security (2003).

In May 2003, the United States hosted a workshop on oil supply emergency response
arrangements. The Republic of Korea hosted a joint oil stockpiling workshop in December
2003. These workshops enabled economies to share experiences and information on issues
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such as establishing response arrangements at the national, local and single infrastructure
levels, and options for joint stockpiling arrangements.

EWG Members have agreed to share information on energy emergency response planning
through an economy presentation at each EWG meeting. The Republic of Korea (EWG26),
the People‟s Republic of China (EWG27) and Australia (EWG28) have made presentations.

In December 2003, Members agreed to form an ad hoc group to identify best practices for the
establishment and management of oil stockpiles. Under the leadership of the United States,
this group developed a set of „Best Practice Principles for the Establishment and Management
of Strategic Oil Stocks‟ which were reported to APEC Energy Ministers at EMM6.

In helping Member Economies move towards best practice, the United States hosted a
workshop, „Oil Stockpiling in the APEC Region: Implementing Best Practices, Facilitating
New Commitments‟ in Honolulu on 26-27 July 2005. The workshop discussed progress in
implementing the best practice principles, proposals to assist interested Member Economies in
establishing strategic stocks, and options to provide expertise to assist interested Member
Economies. The United States will report outcomes of the workshop at EWG30.

Chinese Taipei led the EWG „Earthquake Response Cooperation Program for Energy Supply
Systems‟ under the Earthquake Response Cooperation Initiative. The Program, which seeks
to enhance the robustness of electricity supply systems in the event of an earthquake,
completed its third and final phase in 2003. Project outputs include a website to share
information and a series of annual seminars. A final report on the project was made at
EWG27 (Beijing, March 2004), and Members were encouraged to consider possible projects
to advance the Initiative, out-of-session.

The EWG completed EWG01/2003T „Energy Security in APEC: Assessing the Costs of
Energy Supply Disruptions and the Impacts of Alternative Energy Security Strategies‟ in June
2005. The project focuses on security of energy production and transportation, exploring the
costs of supply disruptions and possible strategies to respond. A draft report was presented at
EWG29 and the final report is available from the EWG website.


4       LONGER-TERM RESPONSES

4.1     Energy Investment

Directions from EMM6

     Implement the recommendations of the „Energy Investment Report: Facilitating Energy
      Investment in the APEC region‟, recognising the important contribution of the private
      sector and financial community in developing the recommendations.

     Reaffirm our commitment to encourage the implementation of best practices previously
      endorsed for implementation in the natural gas and electricity sectors.

Progress

In 2004, the EWG conducted a series of workshops; financing energy efficiency projects in
Australia in February 2004; financing energy infrastructure in Hong Kong, China, in March
2004; and financing renewable energy projects in the United States in May 2004. The
recommendations from all three workshops were brought together in one Energy Investment
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Report presented to APEC Energy Ministers at EMM6. The Report proposed ways in which
the EWG can help Member Economies to facilitate financing in energy infrastructure, energy
efficiency and renewable energy projects.

To progress the report‟s recommendations Members agreed, at EWG28, to establish a
Renewable Energy and Energy Efficiency Financing Task Force and develop a Framework
for an IFAT Program to Build Local Commercial Capability. The United States-led Task
Force, which met for the first time in conjunction with EWG29, currently comprises
Australia, People‟s Republic of China, Republic of Korea, Mexico, New Zealand, the
Philippines, Chinese Taipei and the United States, and the Expert Groups on Energy
Efficiency and Conservation, and New and Renewable Energy Technologies.

At EWG29, the EWG endorsed two self-funded EWG projects: „Develop Market Capacity to
Commercialize Financing of Clean and More Efficient Energy Projects‟ (United States) and
„Case Study of Thailand‟s Energy Efficiency Revolving Fund‟ (Australia), and noted that the
„Development of Renewable and Energy Efficiency (Small Scale Project) Financing Best
Practices and Guidelines for APEC Region Capital Market Development‟, has received urgent
APEC funding.

The Task Force will meet in conjunction with, and present a progress report at, EWG30.

4.2      Natural Gas Trade

Directions from EMM6

     Support the creation of a competitive and transparent marketplace for gas trade and
      encourage member economies to move towards best practice as identified in „Facilitating
      the Development of LNG Trade in the APEC Region‟, recognising the important
      contribution of the private sector in developing these principles.

     Continue work to improve the security of natural gas supply by identifying vulnerabilities,
      supporting trade promotion and establishing convenient information links to gas market
      data available in existing data systems.

Progress

A workshop on furthering trade in Liquefied Natural Gas (LNG) was held in the United States
in April 2004. The workshop, which involved a range of government and industry
stakeholders from member economies, developed a series of best practice principles and
recommendations for the facilitation of LNG trade. These principles were presented to
Ministers at EMM6.

A workshop, „Expanding the LNG Market in APEC: Policies, Commercial Practices and
Technologies‟, was held in Chinese Taipei on 21-23 March 2005 to advance implementation
of these directions. The workshop produced a series of recommendations that are available
from the EWG website and will be presented at EWG30.

An EWG project to examine specific cross-border gas projects (pipelines and LNG) and
develop a series of case studies and a best practice guide for dissemination to Member
Economies was completed in November 2004. A major recommendation from the project
was to establish an APEC Gas Forum (APGAS) as an annual forum for natural gas policy
dialogue involving Asia-Pacific government, business, regulator and community
representatives.
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At EWG29, the EWG Business Network presented a proposal to establish APGAS. Members
agreed to holding a first APGAS meeting in the second half of 2005 before considering
whether to endorse it as an annual forum. The meeting will be held on 1-2 September 2005 in
Perth, Australia, with outcomes to be reported to Members out-of-session for consideration
prior to EMM7.

A project examining „The Prospects for Natural Gas as a Clean Energy Source in Developing
APEC Economies‟ has commenced and will be completed in early 2006.

In January 2005, several links to on-line sources of gas data were added to the „Related
Websites‟ section of the EWG website. The Expert Group on Energy Data and Analysis is
exploring the feasibility of collecting monthly natural gas data, and will report its findings to
EWG30.

4.3      Nuclear Power

Directions from EMM6

     Recognising that some member economies consider nuclear power as an option for their
      energy mix, while others do not, interested member economies are encouraged to
      cooperate on the nuclear framework as endorsed by the EWG. We emphasise that
      security seismic and health concerns, including trans-border effects, should be adequately
      addressed.

Progress

In March 2004, EWG Members endorsed a framework for the discussion of nuclear power
within the EWG. The framework, which recognises that non-emitting electric generation
sources such as nuclear power may be an option for economies seeking to achieve energy
supply diversification, identifies a range of activities that complement the work undertaken in
existing international nuclear organisations.

Activities include considering the role of nuclear power in the region, identifying areas of
cooperation, increasing public awareness, building capacity within interested economies and
promoting adherence to international legal instruments. To implement the framework the
EWG has formed an ad hoc group led by the Republic of Korea and Mexico. At EWG29,
Members encouraged the ad hoc group to progress activities identified in the framework.

The Republic of Korea held the 1st Training Program for APEC Nuclear Power Engineers in
Busan from 5 April – 1 May 2004, and will hold the 2nd Program from 22 Aug – 17 Sept
2005.

4.4      Energy Efficiency

Directions from EMM6

     Implement, as much as possible, an invigorated energy efficiency Pledge and Review
      Program that includes exploring ways to monitor the implementation of policies and
      programs.

     Participate in the Energy Standards and Labelling Cooperation Initiative and the web-
      based APEC Standards Notification Procedure aimed to facilitate trade in efficient energy
      using equipment used within the region.
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     Encourage broadening the scope of work on energy efficiency to include other energy
      intensive sectors, and to monitor the development of new technologies that could have
      significant impacts on, and synergy with, energy efficiency and conservation.

Progress

The Energy Standards & Labelling Cooperation Initiative, led by Chinese Taipei, facilitates
the exchange of information, knowledge and experiences through a series of seminars and
conferences. It includes the APEC Energy Standards Information System (APEC-ESIS), a
comprehensive website providing government and industry stakeholders with information on
testing standards, minimum energy performance standards and labelling requirements for a
range of equipment traded in the APEC region. Its success has seen it secure sponsorship
from the Collaborative Labelling Appliance Standards Program (CLASP), which will see it
expand to include information and data from several non-Member Economies.

EWG Members participate in the Pledge and Review Program, which encourages the
exchange of information about energy efficiency policies and programs in Member
Economies. At EWG27, Members reaffirmed their commitment to a reinvigorated Program
will focus on a specific energy efficiency topic at the second meeting of each year, and
monitor the implementation of nominated energy efficiency policies and programs. The first
topic, „Financial measures to encourage the uptake of energy efficient technologies/equipment
in the industrial and commercial sectors‟, was reported at EWG28 and a consolidated report
prepared at EWG29. Members will report against the same topic at EWG30, and will
consider guidelines to encourage greater reporting under the Program.

In September 2005, Russia will host an APEC-funded „Energy Efficiency Indicators
Workshop‟ (EWG03/2005) to develop, disseminate and build capacity on agreed methods to
measure energy efficiency.

The financing of energy efficiency projects is addressed under 4.1: Energy Investment.

4.5      Renewable Energy

Directions from EMM6

     The EWG to continue its work under the 21st Century Renewable Energy Development
      Initiative, working closely with the EWG Business Network and the APEC business and
      research communities.

Progress

EWG activities in this area are coordinated by the Expert Group on New and Renewable
Energy Technologies. The 21st Century Renewable Energy Development Initiative (REDI)
comprises nine „collaboratives‟, each focusing on an aspect of renewable energy and led by
one member economy.

Recently completed activities under REDI include a proposal for a system to accredit
renewable energy training in APEC (June 2004), a workshop on advances in electricity
storage in support of distributed renewable energy based systems (May 2004) and a technical
workshop to support village power applications (December 2004).


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Current REDI projects include developing a sourcebook of hydrogen codes and standards for
APEC Member Economies; monitoring and assessing the design, operation and performance
of an ocean thermal energy conversion; demonstrating the feasibility of operating a
renewables-related energy service company in the hydro-electric field; and phase II of the
adoption of renewable energy standards project.

In September 2005, the People‟s Republic of China will host an „APEC Renewable Energy
Workshop‟ to share experiences, strengthen policy dialogue and facilitate concrete cooperation
among APEC member economies regarding renewable energy development.

The financing of renewable energy projects is addressed under 4.1: Energy Investment.

4.6      Hydrogen, fuel cells and alterative transport fuels

Directions from EMM6

     Implement the recommendations identified in the „Interim Framework Document on
      Hydrogen and Fuel Cells‟ that highlights the potential for a hydrogen economy in the
      APEC region.

     We call for accelerated cooperation on the development of alternative transportation fuels.

Progress:

The United States hosted a workshop on 29-31 March 2004 to develop an Interim Framework
Document on hydrogen and fuel cell technologies. The Framework Document identifies
activities currently being undertaken in the APEC region, highlights obstacles and areas of
opportunity, and considers the potential for cooperation in areas such as capacity building and
codes and standards.

A project to develop to develop a Sourcebook of Hydrogen Codes and Standards for APEC
Member Economies commenced in early 2004. Preliminary results were presented to the
International Partnership for the Hydrogen Economy in January 2005, and a project workshop
was held in May 2005.

The EWG is collaborating with the APEC Industrial Science and Technology Working Group
(ISTWG) to develop a future fuel technologies roadmap under the „APEC Foresighting Future
Fuel Technologies Project‟. The project‟s scenario planning workshop was held in Thailand
(December 2004), and the first of two road-mapping workshops held in Canada (April 2005).
The second road-mapping workshop will be hosted by the EWG in Chinese Taipei in early
August 2005, and will be reported to EWG30. A final project workshop will be held in
Thailand in late 2005.

At their meeting in November 2004, the Expert Group on New and Renewable Energy
Technologies established alternative transportation fuels as the 9th REDI collaborative, to be
led by New Zealand with the assistance of the United States.

4.7      Methane Hydrates

Directions from EMM6

     Support research on the potential of methane hydrates as a future energy source, and
      direct the EWG to communicate research developments within their economies.
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Progress

To explore the potential of methane hydrates as an energy source in the APEC region, the
United States presented a tutorial on methane hydrates to EWG Members in March 2004.
Members agreed that an ad hoc group should be formed to monitor and report on the research
activities of Member Economies and other international fora in this area and to consider
whether the EWG should participate in the Methane Hydrate International Research
Consortium.

An organisational meeting for the Methane Hydrate International Research Consortium was
planned for December 2004 but has been postponed indefinitely by the organisers.

4.8      Clean Fossil Energy

Directions from EMM6

     EWG to continue its work in the areas of clean fossil energy and carbon dioxide capture
      and geological sequestration, working closely with the EWG Business Network and the
      APEC business and research communities.

Progress

Through the Expert Group on Clean Fossil Energy, the EWG has undertaken a number of
activities to facilitate clean fossil energy. This includes projects on clean transportation fuels,
reducing carbon dioxide emissions from electricity generation and the upgrading and
refurbishment of older coal-fired power stations.

Since EMM6, the EWG has completed several clean fossil energy projects, including to
identify potential geological storage sites in the APEC region, develop training materials to
assist Member Economies build expertise in carbon capture and storage, and to assess the
costs and effectiveness of upgrading and refurbishing older coal-fired power plants in
Developing APEC Economies.

In June 2005, a new APEC-funded project to hold several workshops to disseminate training
materials and build the capacity of Member Economies to adopt geosequestration
technologies commenced.

4.9      Petroleum infrastructure and crude and refined products (CAIRNS Initiative)

Direction

     Working closely with the EWG Business Network, identify problems and enhance
      efficiency in refining, transport and distribution of crude oil and petroleum products.

Progress

In March 2005, the Asia Pacific Energy Research Centre (APERC) commenced a study to
identify problems and enhance efficiency in refining, transport and distribution of crude oil
and petroleum products. The outcomes of this study will be reported to EWG30.




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