IEA points to the collapse of coal in the most industrialised countries: The International Energy Agency (IEA) estimates carbon dioxide emissions increased by 410 million tonnes, or 1.1 per cent, in 2023 compared to a 490 million tonne increase in 2022. The IEA says drought conditions in China, the US and other countries undercut hydro generation and spurred a rise in fossil fuel use. Otherwise power sector emissions would have fallen in 2023. The IEA estimates that coal demand in the most industrialised countries has dropped “back to the level of around 1900”. In these countries, the IEA estimates the share of coal generation has fallen to a “historic low” of 17 per cent.  The agency estimates coal accounted for around 70 per cent of the increase in global emissions from energy combustion in 2023, with China and India responsible for significant increases. (International Energy Agency, International Energy Agency [Pdf])

Calls for a global fund to tackle air pollution: Christa Hasenkopf from the Energy Policy Institute at the University of Chicago notes that billion-dollar global funds have been established to tackle significant health problems such as Aids, tuberculosis and malaria, but so far, there is no equivalent for air pollution which kills about seven million people a year. The Clean Air Fund, a philanthropic group, notes that less than one per cent of international development finance and philanthropic funding addresses air pollution. The recent United Nations Environment Assembly backed a resolution supporting the development of greater regional cooperation between member states to tackle air pollution. (Guardian, Clean Air Fund)

Complaint filed against Standard Chartered over backing for coal plants: Four environmental and human rights groups have filed a complaint with a UK government agency against Standard Chartered over its role in financing four coal plants in the Philippines. The Philippine Movement for Climate Justice, Inclusive Development International (IDI), Recourse, and BankTrack complaint states that local communities near the plants “have suffered economic and physical displacement, adverse health impacts, threats and intimidation of community activists” and are seeking compensation for those affected. The four coal plants financed by Standard Chartered are the 600 megawatts (MW) Masinloc plant, the 300 MW SMC Limay plant, the 300 MW SMC Malita plant and the 1300 MW expansion of the GPower Dinginin plant. The complaint requests the National Contact Point for Responsible Business Conduct (NCP), a government unit responsible for compliance with the OECD Guidelines for Multinational Enterprises, to facilitate dialogue with the complainants and several local community members to resolve the issues. Standard Chartered and HSBC recently announced they are developing “transition credits” as a financial instrument catering to the early retirement of coal plants. (Reuters, Bank Track [Pdf], BNN Breaking)

UK govt documents reveal met coal mine approved despite steel switch: Documents disclosed to Friends of the Earth by the Department for Energy Security and Net Zero reveal the UK government was advised with “high certainty” that UK steel production would be decarbonised by 2035 through the adoption of technology such as electric arc furnace production. In December 2022, the Levelling Up Secretary, Michael Gove, approved West Cumbria Mining’s proposed Woodhouse Colliery, producing up to about 2.8 million tonnes of metallurgical coal annually. In his decision, Gove stated that there was “no certainty” that the gradual use of new technology, including the use of electric arc furnace production, would prevent the UK from continuing to need metallurgical coal for the foreseeable future. “Ministers from every government department must accept that the steel industry is moving away from coal and withdraw support for this unnecessary and destructive mine. This would also help restore the UK’s global credibility on climate change,” said Tony Bosworth from Friends of the Earth (FOE). FOE is currently taking the government to court over the new mine. (Guardian)

Coal companies to defend South African silicosis class action: Four major coal companies – Exxaro, Anglo American, Glencore and South32 – have notified the Gauteng High Court that they will defend a class action brought by the law firm Richard Spoor Incorporated on behalf of about 1500 coal miners. BHP Billiton, which spun off its South African coal assets into South32, and Seriti Power, which later bought four South 32 thermal coal projects, are also included in the case. In 2021, Anglo American spun off its coal mines into Thungela Resources. The class action alleges that the coal companies knew of the risks posed by coal dust but did not protect workers from toxic levels of exposure, resulting in many contracting lung diseases such as pneumoconiosis and chronic obstructive pulmonary disease. The class action seeks compensation for all those diagnosed with lung diseases and the families of workers who are considered likely to have lost their lives due to coal dust lung diseases. (Moneyweb)

Company with Siberian coal mine seeks to overturn Australian sanctions: The Australian Department of Foreign Affairs and Trade (DFAT) urged Federal Court of Australia judge Geoffrey Kennett to reject the “irrational” argument of Tigers Realm Coal that transporting coal to the port was not covered under the regulations sanctioning Australian company operations in Russia. Coal sold by Tigers Real Coal changes ownership at the port. The Australian Government imposed sanctions after the February 2022 invasion of Ukraine to restrict the operations of Australian companies in critical sectors likely to benefit the Russian government financially. Tigers Realm Coal commissioned the Amaan metallurgical coal project in Russia’s Far East, which began exporting coal in mid-2017. In 2023, DFAT ruled that Tigers Realm Coal was “likely” in breach of the sanctions, a ruling the company seeks to overturn. (Australian Financial Review [paywall], SBS)

Australia: Golden Energy, a company owned by Indonesian billionaire Eka Tjipta Widjaja’s family, and M Resources have agreed to buy South 32’s Australian-based Illawarra Metallurgical Coal business for up to US$1.65 billion.

India: The Mormugao municipal council unanimously agreed to issue notices to coal handling companies operating at the Mormugao Port Authority Coal terminal to control dust pollution.

India: Villagers protesting against the lack of jobs have shut down four coal mines near Talcher supplying power projects, including plants run by NTPC and NALCO.

India: The Ministry of Environment, Forest, and Climate Change has approved the expansion of the South Eastern Coalfields’ Devri coal mine from 52.5 million tonnes to 70 million tonnes a year

Ireland: Eighteen of 25 samples of coal sold for home heating had sulphur levels above the two per cent requirement. In September 2025, the regulatory limit will be lowered to one per cent sulphur by weight on a dry ash-free basis.

Indonesia: PT Adaro Energy has set a target sales volume of 65-67 million tonnes in 2024, including 5.4 million tonnes of metallurgical coal. It sold 65.7 million tonnes in 2023.

New Zealand: Forest & Bird has welcomed Stevenson Mining’s decision to abandon its appeal on its proposed Te Kuha coal mine. However, it is concerned that the new government may allow it to proceed through a fast-track planning process.

Taiwan: Taipower has entered into a MOU with IHI and Sumitomo to trial co-firing up to five per cent ammonia at the 2100 MW Talin coal power station.

US: A bill requiring Oregon state Treasury to divest from coal investments passed the Senate 16-13. The bill will go back to the lower house for a final vote and then to Governor Kotek for approval.

US: The Seward Coal Terminal in Alaska is slated for demolition, eight yeears after it last exported coal to the Asian market from the Usibelli Coal Mine.

US: The Wyoming House of Representatives has approved a bill that delays the requirement for carbon capture and storage refits to coal plants by three years to 2033 and allows utilities to pass the costs onto electricity consumers.

WoodMac says renewables undercut coal in most Asia Pacific countries: Wood Mackenzie estimates the costs of electricity from wind and utility-scale solar were 13 per cent cheaper than coal in the Asia Pacific region in 2023, with the margin expected to increase to 32 per cent by 2030. The consultancy estimates the cost of solar power fell by 23 per cent in 2023, and it is now the cheapest source of electricity in 11 out of 15 Asia Pacific countries. It estimates that with a 26 per cent fall in the cost of electricity from distributed solar, including rooftop solar, it is now 12 per cent cheaper than average residential power prices. Wood Mackenzie notes that distributed solar is now about 30 per cent cheaper than residential tariffs in countries like China and Australia. The consultancy estimates onshore wind costs could decline by 30 per cent by 2030 as cheaper Chinese turbines gain market share. Wood Mackenzie notes that the impact of Chinese components is likely to have little effect in countries such as Japan and South Korea that utilise domestic suppliers. An 11 per cent decline in the cost of offshore power means it is now cost-competitive with coal generation along China’s coast, with growth in India, Southeast Asia, and Australia over the next five to 10 years. (Electrek, Wood Mackenzie)

High fossil fuel costs hit Pakistan’s economic growth: The National Electric Power Regulatory Authority (NEPRA), Pakistan’s power industry regulator, has identified high electricity costs as a significant factor behind the country’s low economic growth rate in 2022-23. NEPRA’s State of the Industry Report 2023 identifies the devaluation of the rupee as a significant factor behind high imported fossil fuel costs that have driven electricity tariffs up. NEPRA has backed the development of nuclear and domestic lignite-fired plants. Despite the high costs associated with plants based on imported coal, the Private Power & Infrastructure Board (PPIB) has extended the deadline for the proposed 300 MW to the end of December 2024. Pakistan wanted to cancel the plant or convert it to a solar project but China insisted it proceed as part of the China-Pakistan Economic Corridor. CIHC Pak Power Company had requested that PPIB set the financial close deadline as January 2027. The company has rejected three power offtake tariff agreements proposed by NEPRA. (Pakistan Observer, Business Recorder)

Czech utility says two plants may close in 2025 and calls for govt funding: Sev.en Energy, a company owned by Czech billionaire Pavel Tykac, has informed Czech government ministers that it may shut two coal plants it owns in 2025. The closure of the 2694 MW Pocerady and 820 MW Chvaltice plants would also affect the Vrsany and CSA lignite mines, which, combined with the power stations, employ about 3000 people. Last year, Sev.en Energy flagged that the plants would be loss-making from 2026 and sought clarification from the government on whether it would provide funding support to keep the plants operating. Sev. en Energy now has coal plants in the Czech Republic and Australia and coal mines in the US. In February 2024, Sev.en Energy bought InterGen’s four gas plants in the UK. In late 2023 it also reached an agreement to buy a 51 per cent stake in the 1200 MW Mong Duong 2 coal plant in Vietnam. (Nasdaq, Seznam Zpravy [Czech])

Indian private power producers pitch for government lending support: A November 2023 presentation by the Ministry of Power has indicated that major Indian private power companies are willing to invest in new coal plants and revive distressed coal projects, with the projects to be commissioned by 2032. Reuters reports that Adani Power has indicated an interest in another 4800 MW of coal capacity, JSW 2000 MW, Essar Power 1600 MW and Vedanta 1900 MW. The Association of Power Producers (APP), a lobby group representing private power utilities, acknowledged in a December 4 letter that “It will be a big challenge for any private developer to raise funds”. APP wants the state-owned Power Finance Corporation and the Rural Electrification Corporation to play the lead role in financing the projects. The lobby group also wants more favourable power purchase agreements and expedited project approvals. (Reuters)

Report finds Eskom management too centralised and maintenance poor: A report commissioned by South Africa’s National Treasury into the low energy availability factor (EAF) of Eskom’s coal fleet found the single most significant cause is the utility’s “dysfunctional” and overly complex management system. The report by the VGBe consortium – with coal plant specialists from Dornier, KWS, RWE, and Steag – reviewed the utility’s coal plants between March and May 2023. The report found that Eskom’s plant maintenance budgets were “well above the international benchmark”, while the EAF was about 51 per cent compared to international benchmarks of about 78 per cent. The report stated that poor operation and maintenance procedures meant that “the overall condition of plant health is in many cases mediocre to poor”, with the risk that there is a risk of “the collapse of plants or to further capacity losses”. The report argues proper maintenance and outage work is immediately required, even if it initially means higher load shedding in the short term. The report estimated that the unavailability of 17,400 MW of capacity at the time of the report led to financial losses of about 152 billion rand (US$8 billion) a year. VGBE recommended appointing an external team of experts reporting to the National Treasury for up to 2 years at each plant site with the power to intervene in plant management if required. (Daily Maverick, Eskom, National Treasury [Pdf])

India proposes big rail expansion to cater for coal production boom: India’s Minister of Coal, Pralhad Joshi, has launched a coal logistics plan that aims to cater for the growth of coal production from demand from 980 million tonnes to 1.5 billion tonnes by 2030. The 2024 plan, which is not yet available online, identifies 37 rail projects as priorities to cater for future coal production. The plan aims to establish rail connections to mines to eliminate the double handling commonly occurring with coal trucked from the mine to the nearest railhead. (Economic Times, Ministry of Coal)

New US sanctions likely to cut Russian shipments to India: Three coal traders who spoke to Reuters anonymously said new US sanctions, including major Russian thermal coal exporters SUEK and Mechel, will likely slash cargoes shipped to India. The US Treasury announced the latest sanctions on February 23. “I do not expect any of the big Indian companies to buy Russian cargoes,” one trader said. Reuters reviewed coal shipment data to India and indicated that the largest importers of Indian thermal coal imports in the last six months included JSW Group, Vedanta and Arcelor Mittal Nippon Steel India. Data supplied by Bigmint, a consultancy, indicates India imported just over 10 million tonnes of Russian thermal coal in 2023, a 19 per cent increase from the year before. (Reuters)