August 16, 2018
Issue 241  |  View Past Issues
CoalWire

Editor's Note

An official with Vietnam’s publicly owned coal company has acknowledged there is little public support for new coal plants. The comment, which was published in a government-owned media outlet, is especially important as Vietnam has the world’s fourth largest pipeline of new coal plants. In the US, a a former mining industry spokesperson lamented the coal industry’s image as an industry of no relevance in an era when society demands clean energy.

Turkey, which has the world’s third largest pipeline of proposed coal plants, is now engulfed in economic turmoil. The collapse of the Turkish lira and wider economic problems suggest new coal plants will face formidable economic challenges to progression in the near future. In a separate development, the country’s highest court rejected a plan for a proposed lignite mine to bypass environmental assessment simply because it would be supplying a power plant.

In the Philippines, a winning bid for a recent solar power tender has revealed prices are finally on the way down in Southeast Asia where coal plants have been the default new generation option in most countries. The President and CEO of Meralco, the Philippines’ largest electricity retailer which ran the tender process, recently said he prefers solar power over further investments in coal.

Bob Burton

Features

Germany’s coal task force can change things for Europe

The phasing out of coal in Germany would transform the energy outlook across Europe, writes Nick Butler in the Financial Times.

In Germany’s coal belt, renewables jobs are growing fast

In the regions that will be most affected by Germany’s coal phase-out, employment in the renewables sector has already overtaken jobs in the lignite mining and power sector, writes Felix Heilmann from the Oxford Climate Society in Climate Home News.

Fear and loathing in Colombia

Despite the profound disruption of local communities by the Cerrejon mine in Colombia, which is operated by a consortium of BHP, Glencore and Anglo American, residents continue to demand improvements despite ongoing harassment, writes Richard Solly, the Co-ordinator of London Mining Network.

Corruption allows mine-mouth coal plants to pollute

There have been numerous corruption scandals involving the coal mining industry and power plants which ultimately damage the health and well-being of Indonesians, writes Pius Ginting from the Association of People’s Emancipation and Ecological Action in the Jakarta Post.

Top News

Court rules Turkish mine requires environmental assessment: Turkey’s Council of State — the highest appeals court — has upheld a ruling by the Eskisehir provincial administrative court that an environmental impact assessment (EIA) is required for a proposed lignite mine in the Alpu coalfield. In December 2017 the Provincial Directorate of Environment and Urbanization ruled that, as the mine would supply the proposed 1080 megawatt (MW) plant proposed in Alpu, a separate EIA was not required. An appeal against this decision by the Eskisehir Municipality was upheld. In turn Eskisehir Governor’s Office appealed against this decision requiring environmental assessment to the Council of State but the lower court’s ruling was upheld. (HurriyetNews, CoalSwarm)

Vietnamese coal company acknowledges lack of public support for coal plants: Speaking at a forum on Vietnam’s energy outlook, a representative from Vietnam National Coal and Mineral Industries Group (Vinacomin), the government-owned coal company, acknowledged public alarm about pollution from coal power plants. “This is one of the reasons why the location of coal-fired thermal power plants has become increasingly difficult due to the lack of support from the locality and people where the plant is to be built,” the official stated. (Viet Nam News)

Former US lobbyist recounts US coal industry’s PR woes: Luke Popovich, the former spokesperson for the National Mining Association, the peak US mining industry lobby group, said that the coal industry could no longer deny environmental problems or climate change. “It's too late for denial when your customers, the ratepayers, the banks, and regulators already believe climate change is real,” Popovich told a coal industry conference. The coal, gas and oil industry is planning on launching a new PR campaign, Life: Powered, in the next few weeks to promote the future of the industry. (S&P Global)

China aims to crack down on falsified emissions data: China’s Ministry of Ecology and Environment (MEE) will tighten supervision of emissions monitoring at coal and other plants after warning of “repeated data forgery and illicit administrative intervention” in pollution monitoring results. As part of its plan to cut air pollution China has established state-controlled monitoring stations. However, to avoid data being manipulated, it wants the monitoring institutes to be independent of local governments by 2020. Last week MEE revealed that officials in Linfen in Shanxi, China’s largest coal-producing province, had tampered with air pollution monitoring stations almost 100 times in the last year. (Reuters)

South Korea confirms breaches of UN sanctions on North Korean coal: Korea Customs Service (KCS) has confirmed that between April and October in 2017 three companies imported 35,000 tonnes of North Korean coal into South Korea in violation of UN sanctions. KCS said it will prosecute the three companies for violating the law and forging customs documentation. It is also investigating instituting an entry ban on or seizing the 14 ships found to have transported the coal. Before the sanctions, coal exports were North Korea’s largest source of foreign exchange. (New York Times, Reuters)

Documents reveal Adani’s pitch for approval to pollute reef: Internal documents reveal both Adani and the Queensland Government knew the company’s Abbot Point Coal Terminal would breach pollution regulations before Cyclone Debbie hit the Queensland coast in late March 2017. Adani initially negotiated a variation to its environmental permit so that it was authorised to pollute the Caley Valley wetlands adjoining the terminal over its normal limit. As the cyclone approached it realised it would also discharge polluted water directly into the Great Barrier Reef World Heritage Area and also gained approval for this. After the cyclone had crossed the coast the Queensland Department of Environment granted approval. It was later revealed the pollution was up to 900 per cent higher than the permitted level. (ABC News)

US methane emissions persist after mines closed: Government data show that methane emissions from an estimated 300 active and 200 abandoned coal mines account for almost 10 per cent of US methane emissions. Methane has over 25 times the global warming effect of carbon dioxide. Sealing closed underground mines and allowing them to flood limits methane emissions. However, the data indicate that despite a halving of the number of active mines emissions have declined at a far lower rate, suggesting mines have not been properly sealed. (Climate Home News)

Indonesian villagers receive threatening texts after challenging coal plans: After villagers in Indonesia Borneo objected to plans by PT Kencana Wilsa to explore for coal in 2010 and the company was fined, they thought the plan had been dropped. However, in June the company returned after assuring West Kutai district government that villagers now supported the exploration project. When villagers objected to their views being misrepresented, they received text messages purportedly from West Kutai Police’s chief detective, Ida Bagus, demanding details of who from the East Kalimantan branch of the Mining Advocacy Network (JATAM) was assisting them. Bagu insisted the texts were not from him as he was unaware of the controversy. (Mongabay)

“Coal's single biggest liability is the perception that it is a bygone industry, not a future one. The picturesque miner with a dented lunchbox and blackened face may glorify the industry's industrial past, but it reinforces the perception that coal is dangerous and dirty and that it has no role to play in a digital age, driving a clean knowledge-based economy,”

Luke Popovich, the former spokesman for the National Mining Association, told a coal mining industry conference.

News

Australia: Dust pollution from Alinta Energy’s failed coal ash dam rehabilitation pollutes Port Augusta.

Australia: Legal challenge begins against the proposed Rocky Hill mine near Gloucester.

Bangladesh: Anti-corruption agency summons eight former officials of government-owned coal company over missing coal allegations.

Canada: Damage to Unit 3 at Boundary Dam plant from June 12 thunderstorm unlikely to be repaired until September.

Canada: Federal Government revives plan to privatise the Ridley coal export terminal in British Columbia.

Dominican Republic: Mass anti-corruption rally calls for cancellation of Odebrecht contract for US$2 billion Punta Catalina coal plant.

Egypt: General Electric courts favour with Egyptian media by organising tour of Malaysian plant.

Myanmar: Frustrated by local government indifference, villagers plan to march to the national capital to protest against coal-fired cement plant.

US: Kentucky coal plant owner escapes without fine despite arsenic-laced emissions polluting local water supply.

Companies + Markets

Philippines largest power retailer flags solar supply preference: Meralco PowerGen Corporation has said that it has little interest in buying a 50 per cent stake in three coal-fired power plants being offered for sale by AC Energy, a part of the Ayala Corporation. AC Energy has decided to switch focus to renewables. Meralco’s President and CEO, Rogelio L. Singson, recently said that “personally, I’m for renewables. Ayaw ko ng [I don’t like] old technology.” Meralco have also revealed a 50 MW solar power tender has been awarded to Solar Philippines after its bid to supply power at 2.34 peso (US$0.044) per kilowatt hour (kWh). The previous lowest large-scale solar bid price in Southeast Asia was 2.99 pesos ($0.056) per kWh. (PV Magazine, Business World)

Turkey’s currency woes likely to hit coal plans: The dramatic depreciation of the Turkish lira and financial challenges now facing the economy is likely to have a spill-over effect on plans for new coal and lignite plants. With the government under pressure to increase interest rates and imported coal paid for in US dollars, the energy sector faces an uncertain future. According to the latest data from the Global Coal Plant Tracker there are proposals for 37,719 MW of new coal and lignite plants and 1130 MW under construction. (Aljazeera, CoalSwarm, Bloomberg)

European Union carbon price keeps climbing: The European Union’s carbon price has increased to €18 (US$20.5) per tonne which is triple that of a year ago. While the increased cost will cut the profitability of many coal and lignite plants, it is estimated it would need to increase to €30 (US$34) per tonne to trigger significant fuel switching from coal to renewables, gas or nuclear generation. However, the coal power company RWE — Europe’s largest emitter of carbon dioxide — has hedged its exposure to the carbon price until 2022 by buying carbon permits when prices were low. Analysts also fear that if the UK leaves the European Union without a deal the carbon price could fall once more. (Guardian, Bloomberg)

Coal India backs revision of billion tonnes a year production target: Coal India has called on the federal government to “urgently” revise the coal production target of 1 billion tonnes a year in the 2019–2020 financial year. The target  was first touted in early 2015 by the newly elected Modi Government. However, the target pre-dated the Paris Agreement, the dramatic cost decline in renewables and the declining profitability of privately owned coal power plants. Coal India’s Vision 2030 strategy is likely to be released soon and will include a revised target. In the year to March 30, 2018 India produced 676 million tonnes of coal, an increase of 111 million tonnes over the last four years. In the three months to June 30, India’s thermal coal imports declined by 14 per cent compared to the same period in 2017. (Economic Times, Economic Times)

Australian Government adopts plan to slow coal’s demise: The Australian Government has tentatively reached internal agreement to legislate for a National Energy Guarantee (NEG) designed to stall the adoption of large-scale renewables and slow the retirement of existing coal plants. It is uncertain whether the proposal, which would only cut emissions by 2 per cent in the decade to 2030, will pass through parliament or be accepted by pro-renewables state governments which would also be required to pass supporting legislation. After the government overcame internal opposition to the NEG from pro-coal members of parliament, Prime Minister Malcolm Turnbull vowed to support a proposed new coal plant through a separate mechanism. The NEG is supported by the Minerals Council of Australia, the peak coal industry lobby group. (Guardian, RenewEconomy)

US advances coal and nuclear bailout agenda: The Trump administration is reportedly planning to nominate Bernard McNamee as a new commissioner of the Federal Energy Regulatory Commission (FERC). McNamee was one of the architects of the US Department of Energy’s plan to subsidise coal and nuclear plants which was unanimously rejected by FERC commissioners in January 2018. The reported consideration of McNamee is viewed as an indication the Trump administration is planning to pursue using wartime powers to subsidise some coal and nuclear power plants. A senior FERC official has reportedly directed staff to identify power plants that supply military bases, hospitals and other priority sites during grid emergencies. (Greentech Media)