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February 8, 2024
Issue 500  |  View Past Issues
CoalWire
Published by Global Energy Monitor

Editor's Note

The announcement by China’s powerful National Development and Reform Commission that it wants energy-intensive industries to be required to purchase renewable electricity is hugely significant. Mandating the purchase of renewable power offers developers of new projects the prospect of a guaranteed market with major consumers, such as companies in the aluminium and steel sectors.

The new Polish government is also ringing in the changes, reportedly moving to drop legal challenges against European Union climate initiatives. The European Commission's announcement of its aim to cut greenhouse gas emissions by 90 per cent by 2040 adds further pressure on the new government to accelerate the transition. Bulgaria will also be under increasing pressure to retire its fleet of polluting coal plants. A new report highlights how pollution from Bulgarian coal plants affects millions of people in the neighbouring countries of Serbia, North Macedonia, Greece, and Turkiye.

Finally, on February 14, Indonesia goes to the polls. As the world’s largest thermal coal exporter, the election outcome will be crucial in shaping how the country grapples with a just transition and the rapidly increasing impacts of climate change.

Bob Burton

Features

Which of Indonesia’s election hopefuls has the most climate credibility?

As Indonesia heads for the polls, all three presidential candidates have included climate in their vision statements, but other issues, such as the economy and infrastructure development, have dominated their campaigns, writes Adelia Dinda Sani in Eco-Business.

No ambition: Youth bemoan green pledges ahead of Indonesia poll

Ahead of presidential elections in Indonesia, environmentalists say the candidates have failed to outline clear green policies, write Michael Taylor and Asad Asnawi in Context.

How to ‘uncoal’ Poland

The new Polish government faces many challenges in modernising the country’s electricity sector. Where should the government start? asks Joanna Pandera, the CEO of Forum Energii.

Is there any place for fossil fuels in the clean hydrogen future?

Some analysts warn that US tax incentives could create a perverse incentive for companies to build new coal-based hydrogen production facilities that are dirtier than today’s gas-based ones, writes Jeff St. John in Canary Media.

Environmentalists rattled by radioactive risks of toxic coal ash

The US Environmental Protection Agency now recognizes the dangers of gamma radiation from radium in coal ash, but many states aren’t even sure where the toxic waste has been used. In Alabama, environmental regulators say they do not track so-called ‘beneficial’ uses of coal ash, writes Lee Hedgepeth in Inside Climate News.

Top News

Indian tribunal overturns permit for Adani-operated mine: Villagers have welcomed a National Green Tribunal (NGT) ruling overturning the environmental permit granted to Maharashtra State Power Generation Company (Mahagenco) for the development of the Gare Palma Sector-II coal mine in Chhattisgarh. Mahagenco has appointed Adani Mining as the project operator and developer. The tribunal ruled that a September 2019 public meeting on the proposed mine, which was the focus of mass public protests, was “not in accordance with the law”. The tribunal found that people from only four or five of the 14 affected villages were allowed to attend the public consultation meeting. The tribunal also noted that almost two-thirds of those who attended the public consultation were from the village where the meeting was held. Despite the limited representation from affected villagers at the meeting, land acquisition proceeded in all 14 affected villages. The tribunal also noted that no study on the potential hydrological impacts of the mine has been undertaken. (Hindustan Times, Global Energy Monitor)

Poland set to drop legal challenges against European climate policies: The new Polish government led by Prime Minister Donald Tusk is reportedly planning on withdrawing from legal challenges launched by the previous government against European Union climate policies. The cases Poland is likely to drop include challenges against national emissions reduction targets and changes to the carbon market. Communities in the Czech Republic and Germany hope the new Polish government will reconsider the ongoing impacts on groundwater supplies and damage to buildings from subsidence caused by the expansion of PGE’s Turow lignite mine. Residents insist the 2022 agreement between the Czech and Polish governments that emphasised engineering changes has not reduced the impacts of the mine. (Reuters, Beyond Fossil Fuels)

Polish utility shareholders back lawsuit against failed coal project: An extraordinary general meeting of shareholders of the Polish utility Enea has overwhelmingly backed a resolution supporting legal action against former directors and insurers to recover losses on the failed bid to build the 1000 MW Ostroleka C coal plant. The plant, first proposed over a decade ago, struggled for years to gain finance before the part-built coal plant was abandoned in 2020. The failed project cost the company US$160 million. Following a 2021 audit office report recommending legal action against former members for improper risk management, Enea was advised that former directors were liable for the losses on the project. (ClientEarth, Enea [Pdf], Global Energy Monitor)

European Union formally unveils 2040 emissions reduction target: The European Commission has officially recommended the European Union (EU) adopt a greenhouse gas emission reduction target of 90 per cent by 2040 compared to a 1990 baseline. The EU’s current target is to cut emissions by 55 per cent by 2030. The modelling cited by the European Commission states that under all scenarios, “coal is almost completely phased out by 2040”. Climate Action Network Europe (CAN) welcomed the increased target but said Europe should aim for net zero by 2040 as its fair share of achieving the 1.5°C goal of the Paris Agreement. CAN said the EU should target the elimination of coal power by 2030. (European Commission, Climate Action Network)

Report estimates 3600 lives spared if Bulgaria shuts coal plants by 2035: A report by the Centre for Research on Energy and Clean Air (CREA) estimates Bulgaria could avoid 3600 pollution-related deaths in Southeast Europe by phasing out coal and lignite plants by 2035. The report, which was commissioned by Greenpeace Bulgaria, estimates that phasing out coal power plants and combined heat and power units by 2035 would avoid about €10 billion (US$10.75 billion) in health impacts. Bulgaria has 11 coal and lignite plants with a combined capacity of 4569 megawatts (MW). Six plants, with a combined capacity of 3930 MW, generate only electricity, and there are four combined heat and power plants with a combined capacity of 935 MW. A captive 174 MW coal plant supplies a soda ash plant. Greenpeace notes that 40 per cent of Bulgaria’s electricity is from highly polluting lignite plants. CREA’s modelling revealed that air pollution from Bulgarian coal plants affects millions of people in the neighbouring countries of Serbia, North Macedonia, Greece, and Turkiye. (Greenpeace, Centre for Research on Energy and Clean Air [Pdf])

Canadian study finds extreme pollution from two closed coal mines: A paper in the journal Environmental Pollution by three Alberta Environment and Protected Areas scientists has found selenium concentrations in a retention pond at the former Tent Mountain coal mine site were between 112 to 185 micrograms per litre (µg/l). The Canadian, Alberta, and US limits are between one and two micrograms per litre. Much of the selenium is caught in a wetland downstream from the pond, but concentrations in Crowsnest Creek downstream from the wetland can reach up to four times the limits permitted in Alberta. At the Grassy Mountain site, where the metallurgical coal mine closed in 1975, the scientists found iron concentrations up to 30 times the Canadian standard over 48 hours in July 2022. Northback Resources, a subsidiary of Australian billionaire Gina Rinehart’s Hancock Prospecting, hopes to revive mining at Grassy Mountain. The paper said coal mining activities in the Crowsnest River watershed have affected downstream ecosystems “for decades”. Alberta Environment said the two scientists still employed by the agency weren’t available to discuss their research, and the agency did not respond to inquiries from the National Observer. The third scientist, who now works in the US, declined to discuss the paper due to concern about potential legal action by the province. (National Observer, Environmental Pollution)

Indian government flags policy under development to promote carbon capture: The Indian government is likely to release a policy later this year aimed at promoting carbon capture and storage (CCS) in the power sector, according to Rajnath Ram, an energy adviser to Niti Aayog, an Indian government think tank. Ram suggested the policy would include mandatory targets and various incentives to promote CCS. Currently, only two CCS projects operate on commercial coal plants worldwide: the Boundary Dam project in Canada and the Petra Nova plant in the US. An Indian think tank, the Council on Energy, Environment and Water (CEEW), argues that CCS projects in India will face significant hurdles, including the long distance between existing coal plants and geological formations suitable for storage. CCS not only imposes substantial financial costs on utilities but also requires significantly increased use of coal and water to achieve the same electrical output. (Bloomberg [paywall])

News

Australia: Coal billionaire Trevor St Baker contributed A$50,000 (US$32,400) to Advance, a group that campaigned against a proposed amendment to Australia’s constitution providing for an Indigenous voice to parliament.

Australia: Wollongong Coal, a wholly-owned subsidiary of Jindal Steel and Power, has closed the Russell Vale Colliery that produced metallurgical coal. After five underground fires, the New South Wales Resources Regulator prohibited mining operations until safety issues were addressed.

India: Villagers have called for a fresh community meeting on Adani Group’s proposed Bijahan coal mine in Odisha. In late January, residents blocked Adani from undertaking a drone survey of Bhograkachhar village.

India: The Bihar state government has approved a revived proposal for the 2400 MW Pirpainti coal plant. A 1320 MW plant was proposed at the site in 2014 but was cancelled in 2018.

India: Prime Minister Narendra Modi will lay the foundation stone for NLC India’s proposed 2400 MW Talabira power station in Odisha.

Philippines: The Philippine Movement for Climate Justice has called on the Department of Energy to rescind its decision to exempt the proposed 169 MW expansion of the Therma Visayas plant without an environmental assessment.

Poland: The European Commission has approved a €300 million (US$323 million) scheme to support workers affected by the closure of coal- and lignite-fired power plants and mines.

US: Jersey Central Power & Light will refund US$17.9 million after investigations spurred by the Ohio bribery scandal revealed New Jersey consumers were inappropriately billed for lobbying, sponsorships, advertising and other costs.

US: Utah legislators are promoting a bill that prioritises criteria that favour the retention of Rocky Mountain’s coal plants, with clean energy listed last and affordability ranked as a mid-level consideration for the Utah Public Service Commission.

US: Atlas Carbon, a company that processed coal from the Fort Union coal mine into activated carbon, has defaulted on a US$15 million loan from the Wyoming State Loan and Investment Board.

Companies + Markets

Chinese agency pushes scheme for big power users to buy green energy: The National Development and Reform Commission (NDRC), a powerful central government planning agency, has called on provincial governments to require energy-intensive industries to buy renewable electricity. The announcement emphasised the need to expand the use of green power certificates as a way of “vigorously promoting” renewable electricity generation. The requirement of industrial sectors such as aluminium, steel and cement to purchase renewable electricity would support China’s renewables sector by providing a guaranteed market for new projects. The announcement proposes the development of a suite of measures but does not include specific deadlines beyond references to the 14th Five-Year Plan, which sets priorities to 2025. (National Development and Reform Commission [Chinese], David Fishman [Twitter])

Lacklustre response to Indian coal auction: India’s Ministry of Coal has revealed that it has received bids from 10 companies on just seven of the 39 mines coal mines put up for auction. In late 2023, the ministry announced that 35 new coal blocks would be auctioned with a combined production potential of 77 million tonnes annually. The ministry received just seven bids on four of these blocks. A further four coal blocks leftover from the previous auction were also up for sale. These areas have a potential capacity of 30 million tonnes a year. Three bids were received for three of these blocks. The ministry announced that bidders include state-owned companies Nalco (the National Aluminium Company), Gujarat Mineral Development Corporation and NLC India. In January, the ministry said the attendance of 50 bidders at a pre-auction briefing demonstrated an “overwhelming response from the industry”. (Economic Times)

Doubts over India’s coal gasification pitch: India’s Minister for Finance, Nirmala Sitharaman, has announced that the government aims to achieve 100 million tonnes of coal gasification and liquefaction capacity by 2030 to reduce the country’s reliance on imported fuels. Vibhuti Garg from the Institute for Energy Economics and Financial Analysis questioned the viability of India’s pursuit of coal gasification, given the high capital requirements. She suggested the government would be better off supporting clean energy industries. (Indian Express)

US judge recommends refund to consumers over uneconomic coal plant: A judge in a Louisiana Public Service Commission (LPSC) case has recommended two power utilities refund US$183.3 million charged to consumers for power from the mine-mouth 721 MW Dolet Hills lignite plant. The plant closed in December 2021 as part of a settlement of a legal action brought by the Sierra Club. As part of that case, the Sierra Club argued Cleco Power and Southwestern Electric Power Company were overcharging customers by operating the plant when cheaper sources of electricity were available. The LPSC was told that in the last two years of the plant’s operation, its power jumped from US$4 per megawatt-hour (MWh) to more than US$13 per MWh. Industrial customers supplied by the plant complained that the utilities “sought to burn and monetize the mined lignite as fuel costs, rather than add the lignite inventory as a stranded cost”. The judge has proposed Cleco refund US$128 million to consumers in Louisiana. Swepco was found to have overcharged consumers by US$167 million, with US$55.3 million of that owing to consumers in Louisiana. (Alliance for Affordable Energy)

South African court approves Optimum coal mine settlement: The High Court in Pretoria has approved a settlement agreement proposed by the National Prosecuting Authority (NPA) to resolve the ownership of the Optimum Coal Mine and Optimum Coal Terminal. The NPA had argued that Eskom’s 660 million rand (US$35 million) prepayment for coal in 2016 to Tegeta Resources and Exploration, a Gupta family company, was the proceeds of crime. The resolution of the case followed a complex settlement with Liberty Coal, an indirect subsidiary of Templar Capital, which acquired the projects when Tegeta Resources and Exploration was in administration after the Gupta brothers fled South Africa. The deal creates the possibility that the projects could be revived, with exports through the Richards Bay Coal Terminal critical to the potential reopening of the mine. The National Union of Mineworkers has called on the Richards Bay Coal Terminal to restore Optimum’s train allocation to allow exports from the mine. Before its mothballing, the mine had an annual production capacity of 11 million tonnes. (Daily Maverick, Daily Maverick, National Union of Mineworkers)

Bank of America guts its coal lending restrictions: The Sierra Club said the Bank of America “can’t be trusted” after quietly backtracking on its climate policy, including provisions restricting lending for thermal coal mines and power stations. In December 2023, the Bank of America quietly released its updated Environmental and Social Risk Policy Framework, which only commits the bank to subject coal plants and mines to “enhanced due diligence” and review by high-level executives. The previous version of the policy excluded the bank from financing new or expanded coal power stations or thermal coal mines. (New York Times [paywall], Bank of America [Pdf], Sierra Club)

Green Steel Transition

Australian government provides a subsidy for blast furnace relining: Australia’s Minister for Climate Change, Chris Bowen, has approved a A$136.8 million (US$89 million) grant to BlueScope Steel to support the A$1.15 billion (US$750 million) relining of the Number 6 blast furnace at the Port Kembla steelworks. The blast furnace was commissioned in 1996 and mothballed in 2011. The furnace is scheduled to restart by 2026. The decision to provide public funding for the project was criticised by SteelWatch, an NGO that promotes a transition away from coal-based blast furnaces. The group said Australia would be better off if old blast furnaces were retired and funds invested in hydrogen-based direct reduced iron and electric arc furnaces to “future-proof” jobs and protect the climate. Sanjeev Gupta, the owner of Liberty Steel, which operates a steel plant in South Australia that will receive A$63 million (US$41.2 million) to upgrade the Whyalla steelworks, described blast furnaces as an “obsolete technology” that “no longer has a place in our world”. (Australian Financial Review [paywall], BlueScope [pdf], SteelWatch)

Resources

State aid control in the EU - A State aid guide for civil society organisations, ClientEarth, January 2024. (Pdf)

This 54-page guide provides an overview of state aid control in the European Union.

“The future of clean hydrogen: Separating hope from hype”, Canary Media on YouTube, February 1, 2024. (A summary of the discussion is here.)

This video, which runs for 1 hour and 12 minutes, features BloombergNEF founder Michael Liebreich and Princeton Zero Lab head Jesse Jenkins discussing the opportunities and potential pitfalls in the development of the hydrogen sector.