International Energy Agency reports surge in methane emissions in 2021: The International Energy Agency (IEA) estimates emissions of methane, a potent greenhouse gas, grew by five per cent in 2021. Releasing its Global Methane Tracker 2022, which includes the coal sector for the first time, the IEA revealed that of the 135 million tonnes of methane emitted by the energy sector, coal mining was the largest polluter accounting for about 42 million tonnes. The IEA estimated 41 million tonnes were emitted by the oil sector and 39 million tonnes from gas production, processing, and transport. The IEA estimates methane emissions by the energy sector are 70 per cent higher than those reported by national governments to the United Nations Framework Convention on Climate Change. (Reuters, International Energy Agency)

US court rejects agency mine expansion decision: Federal court Judge Timothy Cavan has ruled that the federal Office of Surface Mining (OSM) illegally approved an expansion of Westmoreland Coal Company’s Rosebud mine, the only supplier of the nearby 1647 MW Colstrip power plant. In 2019, a coalition of environment groups, including WildEarth Guardians, filed a lawsuit arguing the approval for a 6748 acre (2731 hectare) expansion of the mine and the extraction of another 71 million tons (64 million tonnes) of coal violated the National Environmental Policy Act and Endangered Species Act. Cavan found the proposal’s environmental assessment calculated the economic benefits of the expansion but ignored the damage caused by burning more coal or the impacts of additional water extraction from the Yellowstone River. OSM has been ordered to revise its environmental review and make a new decision within a year, or the original decision would be overturned. (Fairfield Citizen, WildEarth Guardians)

NGO warns of legal action over approval for new UK mine: Coal Action Network has submitted a legal letter requesting the UK Coal Authority and the Welsh Government to withhold the mining licence for Aberpergwm colliery extension in Wales. The Coal Authority and the Welsh Government have until February 22 to respond. In early February, the Coal Authority approved Energybuild Mining’s proposal to produce 40 million tonnes of coal over the next 20 years, mainly supplying the Port Talbot Steelworks owned by Tata Steel. Coal Action Network argues the Coal Authority can withdraw the “offered” licence and consider the proposal’s effect on climate change. (BusinessLive, Coal Action Network)

Colorado’s newest coal plant breaks down again: Two weeks after Xcel Energy’s 857 MW Comanche 3 unit stopped supplying power to the grid, the Colorado Public Utilities Commission (CPUC) ordered the utility to detail whether the shutdown will affect customers. A spokesperson for Xcel Energy said the generator would have to be repaired but declined to say how long before the unit would be operating again. A 2021 CPUC investigation found persistent breakdowns meant the Comanche 3 unit had been offline for almost two years in total since it was first commissioned in July 2010. The amount of time offline and higher than planned maintenance costs have pushed the cost of electricity from the unit 45 per cent higher than initially forecast. (CPR News)

Anglo American avoids prosecution over mine explosion: The Queensland Government’s Office of the Work Health and Safety Prosecutor has decided not to prosecute Anglo American over a May 2020 explosion at the Grosvenor mine in which five workers suffered severe burns. In August 2021, an inquiry into the explosion identified the mining company’s “repeated failure to drain dangerous gases in pace with production” as a critical factor in the blast. The President of the Queensland Division of the Construction, Forestry, Maritime, Mining and Energy Union, Stephen Smyth, said, “in an environment where our members get sacked for minor policy breaches, it’s deeply unfair that a management team that oversaw a mine blowing up should face no consequences whatsoever.” (ABC)

Indian Minister restates aim to end coal imports by 2024: India’s Secretary of Coal, Anil Kumar Jain, said the government aims to end thermal coal imports by 2024. Jain said increased Coal India production could account for up to 60–70 million tonnes of the 90 million tonnes of thermal coal forecast to be imported this year, with imports dwindling to negligible levels by 2023. India has repeatedly stated its aim to end thermal coal imports, in large part to avoid the economic drain of expensive energy imports. An end to thermal coal imports would hit South African exporters, the largest supplier of the Indian market. (Economic Times)

Go-ahead for new Chinese built coal plant in Indonesia: A Chinese website has reported Energy China and the Tianjin Electric Power Construction Company recently won a tender to build a 1520 MW captive coal plant to cater for demand from a nickel and cobalt mine and processing plant. The plant is being built by Indonesia’s Harita Group and the Chinese company Lygend. While China has committed not to fund any new overseas coal power plants, support for the Obi Island plant in North Maluku province may indicate a loophole for captive power projects. (Panda Paw, Dragon Claw, Weijin [Chinese])

Russia: An intergovernmental agreement is being negotiated to supply coal to China.

South Africa: Tired of Eskom load shedding, Cape Town municipality aims to source 300 MW in the next 40 months from independent power projects.

US: The Prysmian Group plans to redevelop the former Brayton coal plant site in Massachusetts as a US$200 million subsea transmission cable manufacturing plant for offshore wind projects.

Uncertain impact of sanctions on Russian coal exports: In the wake of Russia’s military pressure on Ukraine, the US Government announced restrictions on two state-owned banks, five individuals close to President Vladimir Putin and a ban on US citizens and firms in markets for new debt issued by three major Russian banks. Over the last decade, Russian exports have increased substantially, with the major importers being South Korea, China, Japan and Vietnam, none of which have announced sanctions. A recent report by Fitch Ratings estimated that new but limited sanctions aimed at Russia might not impact the country’s financial performance even if restrictions reduced foreign investment. A decline in the value of the Russian rouble could boost the value of coal exports. (Reuters, White House, Fitch Ratings)

Brookfield pitches bid for Australia’s largest coal utility: AGL Energy has rejected a A$3.5 billion (US$2.5 billion) offer from Brookfield Investments, a major Canadian infrastructure investor, and Grok Ventures, a fund run by Australian software billionaire Mike Cannon-Brookes, to buy the utility and accelerate the closure of its coal plants. AGL currently proposes operating its 2640 MW Bayswater coal plant until 2033 and the brown-coal-fired 2200 MW Loy Yang A plant in Victoria until 2045. Cannon-Brookes said the takeover consortium would continue to work on the takeover plan and is interested in closing the coal plants by 2030 and funding 8000 MW of renewables and storage capacity. AGL’s 1680 MW Liddell power station is set to close this year. (Guardian, RenewEconomy, AGL)

Indonesian coal prices set for decline: Indonesian coal export prices are likely to decline in response to increased Chinese production and slowing imports due to restrictions on coal generation during the Beijing Winter Olympics. China’s National Development and Reform Commission has flagged 900 yuan per tonne (US$142.07 per tonne) of 5500 kilocalories-per-kilogram coal as the price below which prices will be considered stable. The 900 yuan benchmark represents a 20 per cent decline in prices in mid-February as the effects of the incremental lifting of Indonesia’s coal export ban flowed through to import prices. (Platts)

Coal India calls for a price rise to cover increased mining costs: Coal India, the government-owned coal company, has called for an immediate price increase to offset increasing labour and diesel costs. “Otherwise, coal production in the country will suffer,” Coal India’s Chairman, Pramod Agrawal, told analysts. Increasing domestic production has imposed higher costs on Coal India which produces about 80 per cent of India’s coal. Coal India operates 117 coal mines with a cumulative potential capacity of just over 900 million tonnes a year. A significant increase in electricity demand resulted in Indian power utilities cutting coal generation as stockpiles ran out, and high international prices curtailed demand for imports. (LiveMint, Coal India [Pdf])

Sasol begins the first stage of shifting away from coal-to-liquids plant: The South African coal-to-oil producer announced it has approved funding for switching its Secunda plant, the world’s largest single-site greenhouse gas emitter, from coal to gas feedstock. The company plans to commission a gas-reforming plant by 2025 as the first phase of transitioning the plant away from coal. Sasol’s gas-reforming plant will alter the composition of the gas stream before using it to produce fuels and chemicals. Sasol aims to reach financial close by the end of June 2022 on contracts for 40 to 60 petajoules of liquefied natural gas a year to substitute for its use of nine million tonnes of coal a year. (Mining Weekly, Sasol)

China clears the way for three major new mines: China’s National Development and Reform Commission has approved three new mines with a combined capacity of 19 million tonnes a year. Two of the mines are in Shaanxi province and another in Inner Mongolia. The two provinces are the leading coal-producing regions in the country. In late January, President Xi Jinping visited a coal processing plant in Shaanxi and urged state-owned coal companies to ensure reliable coal supply and prices in winter when coal generation peaks. During his trip, Xi emphasised the need to “reinforce domestic energy production” after widespread blackouts occurred in September 2021 when high coal prices made generation unprofitable, and power utilities cut generation. (Mining.com, South China Morning Post)

NatWest announces tentative moves giant coal clients: The UK financial services firm NatWest said it would cease doing business with a group of coal companies that don’t have “credible” decarbonisation plans. The bank’s spokesperson declined to name the number — “relatively small” — of fossil fuel companies affected but said it would cease its support for the companies, currently valued at £437 million (US$594 million) “as soon as is practicable.” In 2020 NatWest announced it would stop lending and underwriting for companies with “more than 15 per cent of activities related to coal,” and to large oil and gas producers unless they had credible transition plans by the end of 2021. (Financial Times)