Meet the Russian billionaire who’s the proxy owner of Putin’s US$500 million yacht
The US Department of Justice alleges that Eduard Khudainatov, the owner of Coalstar – one of Russia’s largest coal producers – acts as the ‘straw owner’ for three superyachts held by Vladimir Putin and two Russian oligarchs, writes Giacomo Tognini in Forbes.
In Indonesian Borneo, a succession of extractive industries multiplies impacts, social fractures
The snowballing effects of extractive industries – logging, rubber, oil palm, coal – have divided local communities and destroyed livelihoods in parts of Indonesian Borneo writes Elizabeth Fitt in Mongabay.
China ramps up coal power to boost post-lockdown growth
In 2021 Jinneng Holding Shanxi Coal Industry was fined for massively exceeding coal production limits by a government safety agency but approved to expand coal production by the provincial government, writes Eleanor Olcott in the Financial Times.
Can the Indian power sector afford coal imports to meet the spike in demand?
State-owned distribution utilities remain financially stressed and oppose coal imports. Meanwhile, domestic coal availability is under pressure with Indian Railways forced to cancel passenger services to cater for increased coal shipments to power plants a long way away from mines, write Shreya Jai and Dhruvaksh Saha in the Business Standard.
|
Western Australian Government to close two publicly owned coal plants by 2029
Premier Mark McGowan has announced the government-owned power utility Synergy will shut its two remaining coal-fired plants by 2029. The 340 megawatt (MW) Collie plant will close in 2027. Two units at the 854 MW Muja plant are scheduled to close later this year and in 2024. The remaining 454 MW of capacity will close in 2029. The government is proposing to spend A$3.5 billion (US$2.4 billion) over 10 years on 800 MW of new wind capacity, battery storage and potentially pumped hydropower. The announcement leaves just the 434 MW Bluewaters coal plant, owned jointly by Kansai Electric and Sumitomo Corporation, as the only remaining coal plant in the Western Australian grid. One in three houses in the state now have rooftop solar with a combined capacity of over 1300 MW producing more electricity than the Muja plant. (ABC News)
|
Indian state government suspends three coal projects in Hasdeo forest: Following sustained protests by tribal communities and residents, the Chhattisgarh Government has indefinitely suspended three coal mining projects in the Hasdeo Arand forest. The projects were all allocated to the Rajasthan state-owned power utility, Rajasthan Rajya Vidyut Utpadan Nigam. The expansion of the Parsa East and Kete Basan coal block was approved by the Chhattisgarh state government on March 25, with the extension of the Para project granted on April 6. In 2009 the Ministry of Environment categorised the region as a “no-go” zone, which was later downgraded. Tribal and environmental groups want the three projects scrapped. (Business Standard)
US Government backs call for a cross-border inquiry into Teck pollution: US President Joe Biden has backed calls for Canada to agree to a joint investigation under the Boundary Waters Treaty of 1909 into selenium pollution from Teck’s Elk Valley coal mines in southern British Columbia. Pollution from the mines flows across the border into Montana and Idaho. Following a June 6 meeting with six First Nation governments, the US Department of State issued a media release supporting a joint reference to the International Joint Commission to protect public health and the environment and “deliver environmental justice to communities overburdened by pollution.” Global Affairs Canada, the Canadian Government’s foreign affairs agency, said it was “considering a variety of options.” (Canada.com, US Department of State)
US agency identifies 160 coal ash dams as priorities for review: The US Environmental Protection Agency (EPA) is seeking to review the closure plans for 160 unlined coal ash dams it considers may have coal ash in contact with groundwater. Coal ash contains mercury, cadmium and arsenic and is one of the US’s most significant sources of water pollution. In January, the EPA said coal ash dams could not close if there is contact between the coal ash and groundwater. Earthjustice said it was dangerous and illegal for coal ash dams to be closed without measures to prevent groundwater from being polluted. (E & E News)
Colombian presidential candidate refers to coal exports as ‘poison’: The latest opinion polls on Colombia’s June 19 presidential election have the left-wing candidate Gustavo Petro and the construction industry billionaire Rodolfo Hernandez running neck and neck. Petro has pledged not to grant more coal and oil permits and opposes coal seam fracking. At a recent rally, Petro said, “our three main exports are poisons”, referring to coal, oil and cocaine. The comment irked the Colombian Mining Association, which called it “irresponsible and above all disrespectful.” The Minister for Energy, Diego Mesa, said since Russia invaded Ukraine it has restarted exports to Ireland and increased sales to the Netherlands, Spain and Canada. (Reuters, Mining.com)
Indonesian bill seeks to classify coal projects as clean energy: Environmental groups have criticised a bill intended to provide incentives for renewable energy for also including as “new energy” coal seam gas, coal-to-liquids projects, coal gasification projects, nuclear power and hydrogen power. The bill also proposes lifting mandatory domestic sales for coal from 25 per cent to 30 per cent and phasing out all diesel power plants by 2024. The government wants parliament to adopt the bill before November’s G20 summit in Indonesia. “Any support for ‘new energy’ will only prolong the transition,” said Mahawira Dillon from the clean energy think tank CERAH. (Reuters)
NSW government agency advised South32 on how to pitch mine request: Internal New South Wales Department of Planning emails reveals officials advised South32 on how to refine their pitch to New South Wales ministers to designate the proposed expansion of the Dendrobium coal mine as a project of State Significant Infrastructure. The ministers granted the mine the special status based in part on the claim the mine would provide metallurgical coal necessary for nearby steelworks. Lock the Gate criticised the agency for “coaching” the company on its pitch after the February 2021 decision of the Independent Planning Commission rejecting an application for the mine extension. The mine proposal is now being reconsidered by the Department of Planning. (ABC News, Lock the Gate)
US utility was warned about global heating but spent big on denial: A report by the Energy and Policy Institute, a US utilities industry watchdog group, estimates Southern Company spent over US$62 million between 1993 and 2004 on organisations promoting climate change denial. Southern Company was and still is a major coal consumer. In 1980 a Southern Company official was sent a copy of a report which warned that the burning of fossil fuels could cause a “massive extinction of plant and animal species” and a “5- to 6-meter rise in sea level”. (Guardian, Energy and Policy Institute)
|
Poland: Prime Minister pledges to boost coal production before the winter heating season. The government wants lower coal prices as almost one in three houses uses it for home heating.
Russia: Satellite monitoring company estimates massive methane emissions from Evraz’s Raspadskaya coal mine could have been the largest ever traced to a single source.
Serbia: After the breakdown of Elektroprivreda Srbije’s two largest coal plants, Serbia will spend US$1 billion by the end of 2022 on coal and electricity imports.
UK: Government in talks to delay the closure of West Burton A plants from October this year to March 2023.
Ukraine: Government bans the export of coal to meet domestic requirements.
US: Surface Transportation Board rejects application to revive 176-mile (283 kilometre) railway route, reportedly to facilitate coal exports.
|
Documents reveal South Korean utility struggling to find insurers: Documents provided by the Office of the Korean National Assembly Member Soyoung Lee reveal the Korean power utility, Korea Electric Power Corporation (KEPCO), is struggling to find insurance companies willing to provide coverage for its coal plants. KEPCO is the largest electric utility in South Korea and has coal projects in China, the Philippines, Vietnam and Indonesia. A report by Insure Our Future says the documents reveal the accelerating withdrawal of major insurers from coal projects. For example, 72 per cent of the insurance capacity offered for KEPCO’s Nghi Son 2 project in Vietnam has been withdrawn from the insurance market for new coal projects. As major insurers have dropped supporting new coal plants, a cohort of insurers of last resort has emerged led by three major US companies – Starr, Liberty Mutual and Berkshire Hathaway – and Allied World from Bermuda. (Insure Our Future [Pdf])
Report unveils plan end South African load shedding: A report by Meridian Economics estimates that if the Renewable Energy Independent Power Producer Programme had not been effectively frozen in 2016, South Africa would have avoided nearly all load shedding experienced in 2021. The report estimates an additional 5000 MW of renewable energy capacity would have been added under the programme and have created an annual saving for the publicly owned utility Eskom of about 2.5 billion rand (US$160 million) from avoided diesel and coal consumption. Meridian proposes that 27,000 MW of new capacity be added by the end of 2026, mainly wind and solar, along with the commissioning of the final units at the Kusile coal plant and an extra 1500 MW in peaking capacity. The authors estimate the implementation of the plan could end load shedding by 2024. (Engineering News, Meridian Economics)
Indian banks baulk at financing imported coal plants: While the Ministry of Power has been pushing power utilities to increase coal imports to overcome short-term domestic coal constraints, major banks are wary. The Reserve Bank of India (RBI) recently warned domestic banks to exercise caution in assessing requests for working capital for 13 imported coal plants, including projects operated by Adani Power, Essar Power Gujarat, JSW Ratnagiri, and Tata Power’s Coastal Gujarat Power. The RBI requested banks provide details of any exposure to the 13 projects. The banks have reportedly declined to provide support to the projects. (Indian Express)
Indian banks sue GVK over failed Australian mine project: Six Indian banks – Bank of Baroda, Bank of India, Canara Bank, Icici Bank, Indian Overseas Bank and Axis Bank – are suing the GVK Group over its failure to meet repayments and loan conditions on its failed Alpha coal mine project in Queensland. In 2011 the banks lent GVK US$1 billion and provided a US$35 million letter of credit to develop the mine. In 2014 the banks loaned GVK a further US$160 million for the project. A condition of the original loan was that the company obtain a mining lease for the Alpha project by December 31, 2012. GVK stated that it could not get the mining licence in part due to legal challenges by environmental groups. (Economic Times)
Indian renewables growth running behind 2030 target: India added 15,500 MW of new renewable energy capacity in the financial year to the end of March 2022 with a surge in investment. However, India’s renewable capacity – excluding large hydro projects – stands at 110,000 MW, well short of the 175,000 MW target set for the end of 2022. The Institute for Energy Economics and Financial Analysis estimates India will need to invest about US$30–40 billion per year to achieve the 2030 target of 450,000 MW. Moody’s estimates India will require US$225–250 billion in investment to meet the 2030 target. The key factors are continued government policy support and access to low-cost long-term capital from the private and public sectors. (Quartz India, LiveMint)
Indian state drops price cap for imported coal for Adani’s Mundra plant: The Gujarat Government has dropped the $110 per tonne price cap on imported coal for Adani Power’s controversial 4800 MW Mundra coal plant. Gujarat Urja Vikas Nigam, a state-owned utility, has a contract to buy 1000 MW of power from the Mundra plant. In 2008 Adani Power won a competitive tender for the power supply contract from its Mundra plant. However, Adani Power’s business case collapsed when Indonesia banned the export of coal at a price below a benchmark price linked to the prevailing seaborne coal market. Ever since, Adani Power and other generators reliant on imported coal have been seeking to renegotiate the contracts. (Hindu Business Line, National Herald)
Coal exports worth US$5 billion since Russia invaded Ukraine: The Centre for Research on Energy and Clean Air estimates Russia earned €93 billion (US$97 billion) in revenue from fossil fuel exports in the first 100 days since it invaded Ukraine, with €4.8 billion (US$4.2 billion) or five per cent coming from coal exports. The European Union accounted for 30 per cent of Russia’s coal exports though the ban on coal imports is due to take effect in August. The largest importers of coal since the invasion have been Japan, the Netherlands, China, Taiwan, Turkey and Morocco. (Centre for Research on Energy and Clean Air)
Cambodia’s coal plans will limit space or cheaper renewables: Bridget McIntosh, the director of EnergyLab Cambodia, has warned that expensive power purchase agreements entered into by Electricite du Cambodge for coal projects risk blocking investment in solar and wind projects, which have a far lower cost. McIntosh said power purchase agreements for 2400 MW at the Lamam and Xekong coal plants in Laos cost US7.7 cents per kilowatt-hour (kWh) compared to solar at US2.57 cents per kWh. (Khmer Times)
|
|
|
|
