Germany to fast-track renewables to end reliance on Russian fossil fuels: Germany’s Economy Minister, Robert Habeck, has announced plans to dramatically accelerate the shift to 100 per cent electricity generation by renewable energy by 2035 to cut reliance on Russian gas and coal imports. The ministry is proposing renewables legislation to suspend cuts to solar subsidies and increase tenders for solar capacity from 5000 MW to 20,000 MW per year until 2035. It also proposes expanding the tenders for onshore wind from 2000 MW to 10,000 MW per year to 2035. At present, about half of Germany’s imported coal comes from Russia. Despite some ambiguous statements, it appears unlikely the new coalition government will extend the life of domestic coal generation or delay the shutdowns of nuclear plants already underway. (Reuters, Bloomberg)

Poland ponders energy policy changes after Russia invades Ukraine: Polish Prime Minister, Mateusz Morawiecki, has appealed to the European Union to extend sanctions to include an embargo on Russian coal imports. Russia’s economy, he said, “is being fuelled every day... by sales of coal and gas.” Poland, which adjoins Ukraine, has opened its borders to hundreds of thousands of refugees from Ukraine. In 2020 three-quarters of Poland’s 12.9 million tonnes of imported coal came from Russia, with most destined for home heating. With the ongoing decline of the domestic coal industry due to various economic factors, Polish coal workers have objected to Russian coal imports in recent years. Forum Energi, a Polish energy think tank, argues improved energy efficiency measures and the rapid deployment of heat pumps before the next heating season in 2023 would substantially reduce household coal consumption. (TheFirstNews, Forum Energi)

Norwegian sovereign wealth fund to dump Russian investments: The Norwegian Prime Minister, Jonas Gahr Stoere, has announced the country’s US$1.3 trillion sovereign wealth fund will divest all its assets in Russian companies and financial instruments. The Government Pension Fund Global has US$56.39 million invested in 22 companies, including energy firm Gazprom, which is a significant coal plant operator. The fund’s guidelines currently exclude investments in companies with coal plant capacity of over 10,000 MW, or companies that mine over 20 million tonnes of coal a year or earn more than 30 per cent of income from thermal coal operations. According to the Global Coal Plant Tracker, Gazprom currently has 6122 MW of operating coal plant capacity. (Reuters, Reuters, Global Coal Plant Tracker)

Pressure grows on European buyers to drop Russian coal imports: With the European Commission announcing sanctions on Russia, European utilities and steel companies are under pressure to cut Russian coal imports and involvement with projects in the country. Wood Mackenzie estimates about 30 per cent of Europe’s metallurgical coal imports and 60 per cent of thermal coal imports originate from Russia. Uniper, a major German utility, has five power plants in Russia with a combined capacity of 11,200 MW, about five per cent of the country’s grid. The Finnish government-owned company Fortum, Uniper’s controlling shareholder, has another seven power plants in Russia. A Finnish power utility has announced it has suspended purchasing coal from Russia. (Reuters, Helen)

Asian buyers wary of Russian coal: Some Chinese utilities have reportedly been advised by banks and government authorities to hold off buying cargoes of Russian coal due to the prospect of international sanctions. Another trader said ship owners had been warned against docking at Suek’s Vanino Bulk Terminal in Russia. In the first eight months of 2021, China imported almost 27 million tonnes of coal from Russia. Russia exported 194 million tonnes of thermal coal in 2020, making it the world’s third-largest exporter after Indonesia and Australia. The CEO of Australian coal exporter Yancoal, David Moult, said the wariness of Japanese and South Korean utilities about buying Russian coal is likely to increase the market for Australian and other exporters and sustain the current high price. (Platts, Australian Financial Review [paywall])

Australian company’s Russian mine hit by sanctions: Tigers Realm Coal, an Australian company building the Amaam coal mine in Russia’s Far East, has acknowledged the impact of sanctions is likely to delay the completion of its coal preparation plant. The Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund created in 2011 by then-President Medvedev and Prime Minister Putin, holds a 7.9 per cent stake in the company and facilitated BV Mining, a Baring Vostok Private Equity affiliate, buying an 18.2 per cent stake for A$36.2 million. Until early February, RDIF had a director on the company’s board. On February 26, the US Government announced it would institute “full blocking sanctions” on RDIF as a way of curtailing Putin’s ability to “expand the instruments of war and repression.” (Tigers Realm Coal, Whitehouse)

South African province approves Chinese-backed energy complex: Limpopo province has granted environmental approval for a Chinese-backed proposal for the Musina-Makhado Special Economic Zone, including a coal power station, a coking plant and steel plant. The proposal, unveiled after President Ramaphosa’s visit to meet China’s President Xi Jinping in 2018, was initially touted as including a 4600 MW coal plant. Since then, the coal plant has been initially scaled down to a project between 1300 MW and 3000 MW. Late last year, Fossil Free South Africa sought clarification on whether China’s ban would apply to the proposed Musina-Makhado plant. In response, China’s ambassador to South Africa, Chen Xiaodong, confirmed that China “will not build new coal-fired projects abroad.” (Fin24, MoneyWeb)

Denmark: State-owned energy firm Orsted has ruled out buying coal from Russian producers.

South Africa: The failure of a concrete seal at Thungela Resources’ disused Khwezela Colliery led to pollution, killing a 58 kilometre stretch of the lower Wilge River.

US: Pew survey of 11,000 people finds 44 per cent think the US Government should discourage coal mining, with only 20 per cent backing encouraging the industry.

US: West Virginia Republicans move to remove the power of regulators to cite coal companies for unsafe working conditions in mines.

Rio Tinto fined for overstatement of Mozambique coal resources: Rio Tinto has been fined A$750,000 (US$538,200) by the Australian Securities and Investment Commission (ASIC) over a breach of continuous disclosure obligations to shareholders after it discovered in 2012 that the size of reserves at a Mozambique coal project had been significantly overstated. Charges filed by ASIC against the former chief executive officer, Tom Albanese, and former chief financial officer, Guy Elliott, have been dropped. In 2011, Rio Tinto bought the Benga mine and other coal projects from Riversdale Mining for US$3.9 billion but wrote off US$3 billion in 2013 after downgrading the project. In 2014 the company sold its Mozambique projects for US$50 million to International Coal Ventures Limited, a consortium of Indian government-owned coal and steel businesses. The proposed settlement is subject to approval by a Federal Court judge overseeing the case. (Reuters)

Eskom granted only half of the 20 per cent power price it sought: The National Energy Regulator of South Africa (NERSA) has approved a 9.61 per cent power price increase to take effect on April 1, less than half the 20 per cent increase sought by Eskom. Eskom said it would “keenly” await the detailed reasons for the decision. Power prices could be increased further in the next year if a NERSA appeal to the Supreme Court of Appeal over the treatment of a 59 billion rand (US$3.8 billion) “equity injection” by the government. (News24, Eskom)

Peabody Energy launches renewables joint venture: Peabody Energy, which operates 17 coal mines in Australia and the US and has been a leading opponent of climate action, has formed a joint venture company to develop 3300 MW of solar capacity and 1600 MW of battery storage capacity over the next five years. Peabody Energy said R3 Renewables, a joint venture with Riverstone and Summit Partners, plans to develop projects on land at or near six former coal mining sites in Indiana and Illinois. In its most recent annual report, Peabody Energy noted increased deployment of renewables was undermining thermal coal demand, resulting in utilities avoiding entering long-term supply agreements. However, it also claimed that renewables’ “relative expense” could lead to increased policy support for coal power generation. (Peabody Energy, Peabody Energy)

Major US insurance company unveils coal exit policy: The American International Group (AIG), one of the world’s last significant insurers without restrictions on coal insurance, has announced that with “immediate effect”, it will not invest in or provide insurance for the construction of any new coal plants or thermal coal mines. It has also ruled out new investments or underwriting insurance risks for coal plants or thermal coal mines for companies that earn over 30 per cent of their revenue or generate over 30 per cent of electricity from coal. The company set a January 1, 2030 or sooner deadline to phase out existing underwriting for companies over the 30 per cent threshold for revenue or electricity generation. The announcement has been welcomed by Public Citizen and Insure Our Future which said it looks forward to working with the company to “meet and improve on these commitments.” (Insure Our Future, AIG [Pdf])

High coal prices push import-reliant Indian plants to slash generation: The surge in the spot price of thermal coal in the seaborne market to over US$200 per tonne has resulted in a dramatic reduction in generation by plants reliant on imported coal. Data from the Central Electricity Authority reveals that 14 coal plants with a combined capacity of 17,000 MW are operating at 20 per cent of capacity on average. Seven of the plants are not running due to a lack of fuel. Increased domestic coal production has not kept up with utilities’ demand due to a surge in electricity demand and a drive to increase stockpiles at coal plants ahead of the monsoon season. Power prices have spiked to the highest permitted limit of 20 rupees (US$0.27) per kilowatt-hour (kWh), with the average price at 5 rupees (US$0.07) per kWh. (Economic Times)

Explosion at a Colombian mine kills 11 miners; 14 trapped in Chinese shaft collapse: ANM, Colombia’s mining regulator, has confirmed 11 miners were killed after an explosion at an underground coal mine in Tasco municipality. A further four are missing, presumed to be dead. Fourteen miners were trapped in China after a mine shaft roof collapsed in the Sanhe Shunxun coal mine in Guizhou Province. (Reuters, CGTN)

China imposes restrictions on domestic coal prices from key provinces: The National Development and Reform Commission has imposed price controls on coal in the three largest producing provinces with specified “reasonable” ranges. The changes come into effect on May 1. The move is intended to prevent a repeat of power blackouts last year when power utilities shut down power plants rather than run at a loss due to high domestic and imported coal prices. The commission has set the “reasonable range” for thermal coal at between 370 and 570 yuan (US$59–90) per tonne at the mine head in Shanxi province, 320–520 yuan (US$51–82) per tonne in Shaanxi province, and 260–460 yuan (US$41–73) per tonne in Inner Mongolia. The commission has also blocked provincial governments from interfering in coal and power prices in the specified ranges. Provincial governments have also been barred from negotiating special power deals with energy-intensive industries. (Bloomberg)

Emissions expose: Australia’s biggest polluters are emitting more than approved and getting away with it, Australian Conservation Foundation, February 2022. (Pdf) (Media Release is here.)

This 32-page report finds one in five Australian fossil fuel projects emit significantly more greenhouse gases than estimated in their original environmental impact statements. Whitehaven Coal’s Maules Creek coal mine emits three to four times more than initially estimated.