Egyptian coal plants stalled as demand growth slows: Slowing demand growth has promoted the Egyptian Electricity Holding Company to delay the signing of contracts for the construction of the proposed 2640 MW Ayoun Moussa coal plant. Officials said that a large and growing power generating reserve margin combined with the costs associated with a new port for the project made deferral necessary. A public hearing on the Chinese-backed proposal for the 6600 MW Hamrawein coal plant has also been deferred with a new date not yet set. (Daily News Egypt, Global Energy Monitor)
Financing deadline for proposed Pakistan coal plant deferred: The Private Power Infrastructure Board has deferred the deadline for finalising financial support for the proposed 330 MW ThalNova Power plant until March 2021. The plant, which is one of the 3360 MW of new lignite plants proposed in the Thar Desert, was originally proposed to be commissioned in December 2021. In April 2019, ThalNova Power signed a loan agreement with China Development Bank and three other banks for the project. (UrduPoint, Global Energy Monitor)
European Union coal burn plummets as carbon prices climb: Declining coal demand in France, Italy, Poland, UK and Germany has resulted in the net coal imports into the 28 countries in the European Union (EU) declining to the lowest level in since August 2002. Declining demand has had a knock-on effect on coal exporters from Russia, Colombia and the US. One of the factors undermining coal demand is the rising cost of carbon emissions. A survey of eight analysts suggested the cost of EU Allowances would average €26.40 a tonne in 2019 but may rise to €34.37 a tonne in 2020. (Argus Media, Reuters)
No bidders emerge for Greek lignite plants: The Public Power Corporation (PPC), Greece’s publicly owned electricity utility, failed to attract any bidders for the proposed sale of its 330 MW Meliti and 600 MW Megalopoli lignite plants despite setting no minimum price and extending the deadline for bids. PPC was also offering the rights to a proposed 450 MW unit at the Meliti plant. The newly elected conservative government plans to announce a new plan for PPC that some analysts say may involve selling hydro plants along with the lignite units. The collapse of the latest sale process comes at the same time as uncertainty whether the 660 MW Ptolemaida V lignite plant, which is under construction, will ever operate after failing to gain subsidies under a capacity market mechanism ahead of the European Union’s Electricity Market Regulation coming into effect on July 3. (Reuters, WWF, ClientEarth)
BHP signals it is considering exiting thermal coal: The global mining company BHP has flagged that it is “exploring options for its thermal coal business including a disposal amid a growing investor focus on environmental, social, and governance issues.” BHP owns the Mt Arthur thermal coal mine in the New South Wales Hunter Valley and a one-third share of the Cerrejon mine in Colombia. The two mines produced 27 million tonnes of thermal coal in 2018–19. The mines are low-cost producers and considered very profitable, even in a declining market. In its latest report to shareholders BHP estimates thermal coal production in 2019–20 at between 24 and 27 million tonnes. (Financial Times, Australian Financial Review [paywall], BHP)
Adani Australia racks up big losses as Carmichael mine contractors under pressure: Adani Australia has recorded a loss of A$273 million (US$192 million) in part due to a A$128 million (US$90 million) impairment on its proposed Carmichael coal mine. The company attributed the impairment to legal challenges, delays in approvals and the need to redesign elements of the mine. The company also revealed it had made a A$132 million (US$93 million) loss on foreign exchange transactions but provided no details on how this occurred. The global engineering company GHD has declined to comment on suggestions that it has agreed to work on Adani’s proposed Carmichael project, prompting NGOs to step up lobbying pressure on the company. (Sydney Morning Herald, Market Forces)
Chinese data indicates government stimulus boosting coal: China’s latest economic data reveals that in the first half of 2019 coal power generation grew by just 0.2 per cent. Total electricity generation increased by 3.3 per cent over the same period. Solar and wind generation in the first six months grew by 11.2 per cent and 6.6 per cent, respectively. Domestic coal production in the first six months of 2019 was 1.76 billion tonnes which was an increase of 2.6 per cent on the same period in 2018. Coal imports rose by 5.8 per cent in the first half of 2019. Coal demand is remaining high in part due to strong demand growth in both the steel and cement sectors, which reflects government economic stimulus programs increasing infrastructure spending. (Reuters, Tom Baxter (China Dialogue)
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