Munich Re concedes a little ground on its coal policy: In response to growing pressure from investors and civil society groups, Munich Re, the world’s largest reinsurer, has announced it will cease investing in bonds and shares of companies that generate more than 30 percent of their sales from coal-related business. Munich Re said that “in principle” the company would “no longer insure new coal-fired power plants or mines in industrial countries.” This limitation applies to a small number of proposed coal plants, though the impact on new coal mines is less clear. The company’s announcement followed 850,000 people signing a petition urging the company to exclude coal. In early May, Allianz announced it would not provide stand-alone insurance for new coal plants or mines and would withdraw entirely from the coal sector by 2040. (Euronews, Unfriend Coal) Lloyds unveils decarbonisation plan: Lloyds Banking Group has announced it will cease financing new coal-fired power stations or thermal coal mines, including any major expansion of existing plants. It also announced it will not take on as new clients companies that earn a majority of their revenue from coal-related business but will work with existing clients to “support their transition to lower carbon models in line with the Paris Agreement.” The bank also announced it will exclude financing mountaintop coal mining projects for new or existing clients. (Reuters, Lloyds Banking Group) US coal production plummets: The US Energy Information Administration (EIA) estimates that in 2017 US power sector coal consumption was 36 per cent lower than in 2008 when US coal production reached its highest level. The decline is equal to 376 million US short tons or 247 million metric tonnes. The EIA estimates that 2017 was the fourth consecutive year that US coal consumption and coal shipments declined. (US Energy Information Administration) US utility predicts no need for new large plants for 20 years: Bill Johnson, the President and CEO of the Tennessee Valley Authority (TVA), a federal US government-owned utility which operates six coal plants, has flagged that the agency’s revised 20-year plan is once more likely to conclude that no new conventional generation capacity will be required in the next 20 years. Johnson also said that “the decline in demand is real and, I think, permanent” due to energy efficiency gains. The decline in demand, he said, has resulted in reduced capital expenditure and declining debt levels. Public comments submitted on its 2019 plan included many from supporters of the 440 MW Red Hills coal plant and coal mine in Ackerman, Mississippi urging the TVA to continue power purchases from the plant. (SNL) Indonesian Government stands firm on domestic coal price cap: Indonesia’s President Joko Widodo has rejected lobbying to abandon the domestic market obligations (DMO) for coal producers. The DMO requires coal producers to provide at least one-quarter of production for the domestic market. The DMO regulation also caps the sale price of thermal coal to the government-owned utility PLN at a maximum of US$70 per tonne. While the price cap eases pressure on PLN to increase electricity prices ahead of the April 2019 Presidential election, coal exporters wanted the DMO price set higher as the export price is currently far higher. (Platts) Indian Government gives green light to coal seam and shale gas: The Indian Government has granted approval for the holders of existing oil and gas licences to explore or produce shale oil and coal bed methane within their licence areas. Previously oil and gas companies could not exploit shale oil or coal seam gas deposits in their licence areas. The change in the regulations expands unconventional gas and oil projects over 77,296 square kilometres. (Times of India) Uniper unveils coal plant conversion plan: The European utility Uniper plans to build new gas-fired units to replace the two remaining coal units at its 700 MW Scholven coal plant in North Rhine-Westphalia. The gas units are intended to initially supplement the coal units but fully replace them by 2022 with the power supplied to a nearby industrial customer. The two units to be closed were commissioned by the early 1970s. In its report to investors Uniper did not mention its proposed 1100 MW Datteln 4 coal plant which it stated in May would be delayed until 2020. (Platts, CoalSwarm)
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