Climate leaders win prestigious Goldman Prize: Marjan Minnesma, the founder of the Dutch NGO   Urgenda and Julien Vincent, the founder of the Australian group Market Forces, are two of the six winners of the 2022 Goldman Environmental Prize. In November 2013, Urgenda filed a lawsuit against the Dutch government seeking a 40 per cent reduction in greenhouse gasses by 2020. In December 2019, the Supreme Court agreed with lower courts in ordering a cut in emissions of 25 per cent below 1990 levels by the end of 2020, a decision driving the closure of coal plants in the country. Market Forces has led a campaign to push Australia’s big four banks to exit from financing coal and worked with coalitions to end financial support for international coal projects. (Goldman Prize)

Chinese coal boom could drive surge in methane emissions: A report by Global Energy Monitor estimates a massive expansion of existing coal mines and approval of new projects in China could increase global emissions of methane, a potent greenhouse gas, by up to 6 million tonnes of methane a year. China responded to a short-term energy crisis in 2021 by expanding 249 mines and increasing coal production at them by 270 million tonnes. The mines have an annual production capacity of 464 million tonnes per annum. A further 169 proposed mines, with an estimated capacity of 559 million tonnes of coal a year, are under construction. Methane emissions from these projects could represent up to a ten per cent increase in annual methane emissions. It is estimated methane emissions from coal mines must decline by 11 per cent a year through to 2030 to achieve the Paris Agreement goal of limiting global heating to 1.5 over pre-industrial levels. (Bloomberg, Global Energy Monitor)

Renewables transition to accelerate after Australian election: The Liberal Party government led by Prime Minister Scott Morrison has been resoundingly defeated, with the opposition Labor Party on track to winning a narrow majority. The Liberal Party lost seats in its traditional heartland areas in Sydney, Melbourne and Perth to pro-climate independents, with the Greens picking up at least two extra lower house seats in Queensland. The Labor Party supports a transformation of Australia’s electricity generation sector towards renewables but has ruled out restrictions on new coal or other fossil fuel projects. During the campaign, the leader of the Labor Party, Anthony Albanese, stated that “if coal mines stack up environmentally, and then commercially... then they get approved.” The Greens won three new seats in the Senate, expanding their representation to 12 in the 76-seat chamber. On issues where the Liberal Party opposes a Labor bill, the government will require the support of the Greens and a pro-climate independent, David Pocock. (Guardian, ABC News)

Study finds coal plant exit could avoid over 14.5 million premature deaths: Analysis by the NewClimate Institute, a German NGO, estimates the existing global fleet of coal plants causes more than 900,000 premature deaths per year, with China accounting for about 720,000 premature deaths per year. The study estimates an early phase-out of coal plants in the 24 countries that account for about 90 per cent of the coal fleet could help avoid 14.5 million premature deaths from air pollution over the next three decades. It estimates an accelerated coal plant phase-out would deliver an economic benefit of US$16.3 trillion. The group has also released an interactive tool allowing users to calculate the health impacts of coal plants in each of the major countries with coal plants. (NewClimate Institute, NewClimate Institute)

US court rejects contractor bid to avoid liability over coal ash clean-up: A 6^th US Circuit Court of Appeals judge has rejected a bid by Jacobs Engineering to have immunity from prosecution over the health impacts of the clean-up of the December 2008 Kingston coal ash spill. Jacobs was contracted by the US government-owned Tennessee Valley Authority (TVA) to clean up an estimated 1 billion gallons (4.2 million cubic metres) of coal ash, which spilled over about 300 acres (1.2 km2) of land following the failure of an ash dam. A lawsuit was brought against Jacobs by 220 workers and more than 100 spouses over health impacts and deaths they attribute to exposure to coal ash. They are seeking US$50 million in compensatory damages and US$3 billion in punitive damages. Jacobs claimed that, as a TVA contractor, it should enjoy the same legal immunity as the utility has. The court ruled neither Jacobs nor the TVA would have legal immunity in this case. (Knoxville News-Sentinel, Reuters)

US utility fined over coal ash contamination: The Public Service Company of Colorado, a subsidiary of Xcel Energy, has been fined US$925,000 over groundwater contamination from the coal ash dam at its 1635 megawatt (MW) Comanche power station in Pueblo. The Environmental Protection Agency said that the company agreed to ensure the coal ash dam complies with the standards established under the Coal Combustion Residuals program as part of the settlement. Xcel has announced Unit 1 will retire in 2022 and Unit 2 in 2025. It proposed that the troubled 857 MW Unit 3, first commissioned in 2010, would close in 2040 but is now slated to be shut in 2034. (CBS Denver, US Environmental Protection Agency)

Glencore pleads guilty to seven bribery charges over African oil projects: Glencore stated it would plead guilty to seven charges of bribery laid by the UK Serious Fraud Office against Glencore Energy, a subsidiary with oil operations in Africa. The Serious Fraud Office announced the charges related to the payment of more than US$25 million in bribes to gain “preferential access to oil” in Cameroon, Equatorial Guinea, Ivory Coast, Nigeria, and South Sudan. Glencore will be sentenced at a court hearing on June 21. Glencore stated it had reached agreements with the US Department of Justice to pay US$700.7 million to settle bribery investigations, US$485.6 million to resolve an investigation into market manipulation and US$39.6 million to settle bribery investigations in Brazil. Investigations by Swiss and Dutch regulators are continuing. The agreements with the US Department of Justice require Glencore to appoint an independent monitor for three years to oversee compliance with agreements and evaluate the effectiveness of the company’s compliance programme and internal controls. Glencore is the world’s largest exporter of thermal coal. (BBC, UK Serious Fraud Office, Glencore)

Former UK Minister says Cumbrian coal mine shoudn't be approved: Former UK Minister for Energy, Chris Skidmore, said approving West Cumbria Mining’s proposed new underground metallurgical coal mine in Cumbia would undermine the UK’s commitment to reaching net zero emissions by 2050. Skidmore said approving the project would send the wrong signal to other countries. “It doesn’t matter if it’s coking coal for steel, it’s still a coal plant,” he said. The Levelling Up Secretary, Michael Gove, is due to announce his decision on an application for planning consent for the mine by July 7. (Evening Standard)

Australia: Standard Chartered and Barclays have been criticised for providing a US$250 million debt facility to an Adani Enterprises subsidiary, potentially freeing up funds for the Carmichael coal project.

India: The government has abolished the five per cent import duty on metallurgical coal for the steel sector.

India: Utility NTPC says power generated from imported coal will cost 7–8 rupees per kilowatt hour (kWh) compared to 2 rupees per kWh based on domestic coal.

South Korean utility moves to sell overseas coal plants: In the wake of recording a loss of US$6.14 billion in the first quarter of the year, the state-owned power utility Korea Electric Power Corporation (KEPCO) has announced it will sell off all of its overseas coal power plants. The utility has 34,514 MW of total operating coal plant capacity, including the 200 MW Cebu plant in the Philippines. KEPCO is also part way through the construction of the 1200 MW Nghi Son 2 plant and has a 40 per cent stake in the 1200 MW Vung Ang 2 plant, both in Vietnam. KEPCO also has a 15 per cent stake in the consortium building the 2000 MW Jawa 9 & 10 plant in Indonesia and has a 2,838 MW share of an 8350 MW coal plant in Shanxi in China. In a presentation to investors, KEPCO noted the cost of coal in the first quarter for its plants had increased by 78 per cent compared to the first quarter of 2021. (Korea Times, KEPCO [Pdf])

Pakistan coal consumers struggle as high prices undercut demand: The high cost of South African coal in the seaborne market has resulted in industrial consumers in Pakistan “keeping their plants shut most of the days”, according to a coal trader. Import-based coal plants are reportedly operating at less than 60 per cent of their capacity. Pakistan imports about 70 per cent of its coal from South Africa. South African coal exports have been constrained by reduced rail capacity, and increased European demand for alternatives to Russian supplies has driven prices to record highs. Some customers are seeking to source lower quality coal from Afghanistan. An anonymous trader said he didn’t expect Pakistani customers to buy South African cargoes of thermal coal until the price dropped below US$250 per tonne. On May 20, South African 5500 kilocalories per kilogram coal sold for US$289.45 per tonne. An anonymous US coal trader said Pakistani buyers would seek lower cost and higher ash content coal from South Africa, Indonesia and cut-price Russian coal. (S & P Global)

Indonesian company rules out further coal assets: PT Astra International, a large diversified Indonesian conglomerate, has announced it will no longer invest in coal power plants or buy coal mining assets. Another Indonesian company, Indika Energy, has announced it will sell its controlling interest in its contract coal mining arm Petrosea to a private company, Caraka Reksa Optima. (Investor.Id [Indonesian], Jakarta Globe)

Deutsche Bank drops bid to raise funds for Whitehaven Coal: An international campaign has persuaded Deutsche Bank to abandon plans to raise A$1 billion (US$ 0.7 billion) on Asian bond markets for Whitehaven Coal, a company expanding the Narrabri coal mine and building the Vickery mine in New South Wales and the Winchester South mine in Queensland. Market Forces and allied groups in Germany took out full-page advertisements in major German publications urging the bank to end its support for Whitehaven, which was inconsistent with its internal coal exclusion policy. Handelsblatt reported internal Deutsche Bank committees blocked the bank from proceeding to play a role in Whitehaven’s bond issue. However, Market Resources is concerned Deutsche Bank also needs to rule out refinancing the current loan it has provided to the company. (Market Forces)

Philippines coal exporter increases sales to South Korea: The Philippines’ only coal exporter, the Semirara Mining and Power Corporation (SMPC) is seeking to sell coal to South Korean customers as a hedge against declining Chinese imports. SMPC aims to produce about 15 million tonnes of low-grade coal in 2022, with about 60 per cent destined for the export market. In 2021, 95 per cent of SMPC’s export sales were to Chinese customers, but this year the share has dropped to 71 per cent as Chinese domestic production and renewable generation have increased. SMPC has sold over 300,000 tonnes of coal to South Korea in the first three months of 2022, more than it exported there in 2021. (Argus)

International Energy Agency pushes G7 to pursue cutting industrial coal: An International Energy Agency (IEA) report for the G7 – Canada, France, Germany, Italy, Japan, the United Kingdom, the US and the European Union – estimates heavy industrial consumers in the bloc were responsible for about 15 per cent of coal use in 2020. The IEA estimates three key heavy industry sectors – steel, cement and chemicals – account for around 70 per cent of industrial emissions in the G7 group. The IEA argues that many of the critical technologies to cut emissions in the key sectors are at the early stages of development and will initially impose higher costs on first movers. The IEA promotes the use of targeted finance to support early-stage projects and measures such as carbon contracts for difference, public procurement rules and quotas to create markets for zero emission steel and cement production. (International Energy Agency)

Australian government agency estimates thermal coal prices will slide: The Australian Government’s Office of the Chief Economist estimates thermal coal process in the seaborne market could fall from a peak of US$184 a tonne in 2022 to around US$60 a tonne by 2027 in real terms. In the latest edition of Resources and Energy Quarterly, the agency notes the price spike caused by increased Chinese demand, COVID-19 disruptions and impacts of Russia’s invasion of Ukraine have not resulted in increased investment in thermal coal mine capacity. The agency notes this lack of investment “will make it harder for coal prices to correct, which may in turn reduce the competitiveness of coal and accelerate its structural decline”. The agency estimates sanctions on Russia could result in coal exports diverting to the Chinese market but at a price discount. It also notes sanctions have cut Russian coal companies’ access to imported equipment. (Department of Industry, Science, Energy and Resources [Pdf])

“Prayers of Steel”, Threshold Podcast, May 2022. (Episodes 8, 9 and 10 on transforming the steel industry are here, here, and here.)

These three podcast episodes – which run for between 45 and 48 minutes – explore the challenges of transforming the steel sector through the story of Gary, Indiana and examine the move by a consortium of Swedish companies to produce steel without using coal.