Plan envisages end for inner city Australian coal terminal: A draft plan developed by Newcastle City Council and the Department of Planning flags the option of closing the Carrington coal export terminal by 2024 and shifting its operations to the Kooragang Island terminal. Relocation, which is supported by residents, would enable redevelopment of the site for residential areas and a proposed cruise terminal and cut air pollution levels in the city. In 2017 the Carrington terminal operated at just 70 per cent of its 25 million tonnes per annum (Mtpa) capacity. The Kooragang Island terminal has a capacity of 120 Mtpa. (Newcastle Herald, Newcastle Herald) South32 exit from South African coal may pose challenges for spin-off: South32’s decision to exit its South African thermal coal mines may expose Eskom, the primary domestic customer, to increased cost pressures with new standalone companies finding it harder to gain finance. South32 CEO, Graham Kerr, said that while it would establish its spin-off coal company to be financially sustainable, other coal projects such as Seriti Resources’ proposed US$1.7 billion New Largo coal mine would rely on whether Eskom could agree on a funding mechanism. (Fin24) US companies project decline in coal from Powder River Basin: Three major coal companies operating in the Powder River Basin are estimating that production in 2018 could decline as much as nine per cent compared to 2017. In 2017, 300 million tonnes were produced in the region, which spans Wyoming and Montana. Cloud Peak Energy is estimating a decline of between two and eight per cent and Peabody Energy suggested a range between sales being stable and an eight per cent decline. Arch Coal states its production will remain flat. Peabody Energy estimates US coal demand will decline by between 13 and 18 Mtpa each year for at least the next five years due to coal plant retirements. (S&P Global, S & P Global) Norwegian sovereign wealth fund may dump more coal stocks: Norway’s US$1 trillion sovereign wealth fund, Norges Bank Investment Management (NBIM), has advised the Ministry of Finance that investing in thermal coal stocks is increasingly unlikely. NBIM stated in a letter to the ministry that “this divestment from coal means that the fund does not generally invest in an energy source that will probably not survive the transition to a low-carbon society.” The board of Norway’s central bank is also considering whether to exclude investments in high carbon dioxide emitters in the power sector as well as the steel and cement industries. (Reuters, Reuters) Cost of imported coal hits Indian power companies: Adani Power and Essar Power have refused to honour power purchase agreements (PPAs) with the state-owned utility Gujarat Urja Vikas Nigam (GUVNL) for the supply of 2000 MW and 1000 MW. In 2017 the Supreme Court ruled out a bid by Adani Power and Tata Power for a compensatory tariff after they underestimated Indonesian coal export prices. The higher imported coal prices rendered their plants unviable. Adani and Essar’s withdrawal of capacity has forced electricity spot prices up and prompted state and national politicians to call for the renegotiation of the loss-making PPAs. (Times of India, BusinessLine) Groups call on banks to avoid Polish coal plant: Polish environmental groups have called on banks to refuse to fund Energa and Enea, two state-owned utilities proposing to build the 1000 MW Ostrołęka C unit. The two utilities have been funded in the past by European Investment Bank and private banks including ING, BNP Paribas, JPMorgan Chase, HSBC and Citi. (Banktrack)
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