New year, same reminder: There’s no such thing as “clean coal”
The South African government’s draft power plan proposes nuclear, gas and “clean coal” plants are needed instead of accelerating the rollout of renewables. It’s a little depressing that this still needs to be said in 2024, but here we go again – there is no such thing as “clean coal”, writes Simon Nicholas from the Institute for Energy Economics and Financial Analysis.
Closing coal plants early makes economic sense in Pakistan
An Energy Transition Mechanism facility like the Asian Development Bank is pursuing in Indonesia may offer a model to bring forward the retirement of Pakistan’s young fleet of coal plants, writes Haneea Isaad from the Institute for Energy Economics and Financial Analysis in The Third Pole.
Elderly orchardist suffers for opposing Adani transmission line
A seventy-year-old orchardist who opposed the route of an Adani transmission line taking electricity from Adani’s power station at Godda in West Bengal across the border to Bangladesh has been harassed by company, police and state officials, writes A. Abedin in Adani Watch.
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Slovakia to close its last coal plant in mid-2024
Beyond Fossil Fuels has welcomed the decision of the Slovakian power utility, Slovenske Elektrarne, to close the 220 megawatt (MW) Vojany power station by the end of June. The 266 MW Novaky lignite plant closed in December 2023, leaving the Vojany plants as the country’s last coal project. Slovenske Elektrarne has co-fired the plant with wood chips since 2009 and, later on, added waste to the fuel mix. However, the plant is uneconomic due to declining power prices, the increasing European Union carbon price, the high price of coal and difficulties sourcing a reliable supply of wood pellets and waste. Slovakia had previously set the end date for coal generation for 2030. Alexandru Mustata from Beyond Fossil Fuels said Slovakia now needs to focus on phasing out coal from the heating sector by renovating buildings to boost energy efficiency and installing heat pumps. (Balkan Green Energy News, Beyond Fossil Fuels)
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Poland flags support for ambitious climate action: In initial comments at a meeting of European Union environment ministers, the State Secretary at the Ministry of Climate and Environment, Ula Zielinska, committed Poland to “stepping up its efforts” to address climate change. Zielinska said Poland would adopt a constructive approach with the European Union and offered to support a 90 per cent emissions reduction target by 2040 if there was support to address the social and economic impacts of a transition. In later comments, Zielinska backtracked and emphasised that Poland currently does not “have a clear declaration on the emission reduction target for 2040 at such an early stage” but stated its focus on meeting the existing 55 per cent emissions reduction target for 2030. The previous government set a coal phase-out deadline of 2049, but Zielinska said this is now up for review and should be brought forward. “I believe we must, and we must do it very soon, because only with an end date we can plan.” (Council of the European Union, Climate Home News, Ula Zielinska [Twitter])
US court finds two Texas counties don’t meet air quality standards: The US Fifth Circuit Court of Appeals has ruled in favour of the US Environmental Protection Agency’s (EPA) designation that two Texas counties do not meet national air quality standards. Luminant Generation and the Texas government had challenged the EPA’s classification of the two counties not complying with national air quality standards. The countries are affected by sulphur dioxide pollution from Luminant Generation’s 2379 MW Martin Lake plant. The Sierra Club describe the plant as the worst sulphur dioxide polluter in the US. As a result of the decision, the EPA has until the end of 2024 to issue a federal plan or approve a Texas government plan to bring the counties into compliance with national air quality standards. (East Texas Radio, Sierra Club)
Software provider to pay US$220 million over Eskom contracts scandal: The German software company SAP has agreed to pay more than US$220 million to settle investigations by the US Justice Department (DOJ) and the Securities and Exchange Commission (SEC) into bribes paid by the company to government officials in South Africa and Indonesia. Announcing the settlement of violations of the Foreign Corrupt Practices Act, the DOJ stated that between 2013 and 2017, SAP had bribed South African officials to win contracts with various agencies, including Eskom, the state-owned power utility. The settlement agreement stated that SAP made payments to two entities “owned by individuals who were closely affiliated with multiple South African government officials” to “assist in obtaining and retaining business with Eskom”. The SEC stated Eskom paid SAP approximately US$28.58 million to renew software licenses. SAP, in turn, paid US$5.18 million in consulting fees to another entity that performed no work on the project. The settlement includes administrative forfeiture of over US$103 million from contracts with Eskom and three other government agencies. The DOJ notes that one SAP payment for about US$155,000 in 2016 was to a “high ranking” City of Johannesburg official who supplied bank account details for a political party. South Africa’s National Prosecuting Authority said SAP will pay R.2 billion rand (US$120.3 billion) as “restitution” to the affected South African state entities. (News24, US Department of Justice, US Department of Justice, US Securities and Exchange Commission [Pdf])
No conviction or fine for many arrested at Australian coal port protest: Newcastle magistrate Stephen Olischlager has dismissed charges against 38 people arrested at a November 26 water-based protest against the coal export terminal organised by Rising Tide. Over 100 people were arrested after refusing to leave the shipping channel after the approved 30-hour blockade concluded. More than 140 million tonnes of coal was shipped through Newcastle’s three terminals in 2023, making it the world’s largest coal export port. Those before the court on January 11 with no prior convictions, with one exception, were sentenced to an 18-month good behaviour bond but not fined. Those with prior convictions were convicted of breaching the Marine Safety Act and fined A$300 (US$200). Olischlager said that he didn’t record convictions for those with no prior record as “offences of this nature are [often] committed by persons who are of good character” and that those involved were “not selfishly motivated”. (ABC News, Sydney Criminal Lawyers)
US agency to review the adequacy of rehabilitation at closed mines: The US Government Accountability Office (GAO) has agreed to investigate the extent of idled and closed coal mines that have not been rehabilitated. The GAO decision follows an October 2023 letter from eight Democratic lawmakers requesting details on mines that have been idled for more than a year since 2019 and where reclamation work is not proceeding. The Surface Mining Control and Reclamation Act (SMCRA) requires that mining companies promptly rehabilitate idled mines and provide financial guarantees to meet future rehabilitation expenses. In a 2021 report, Appalachian Voices estimated that financial bonds were likely to cover less than half the US$7.5 to US$9.8 billion of remedial work required on 633,000 acres (256,000 hectares) of mining-affected lands in Alabama, Tennessee, Virginia, Kentucky, West Virginia, Ohio and Pennsylvania. The group found that the shortfall in rehabilitation work is most significant in West Virginia, Kentucky and Pennsylvania. The GAO investigation will commence in March. (Inside Climate News)
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Australia: A 27-year-old worker died after being crushed between two vehicles at BHP Mitsubishi Alliance’s Saraji metallurgical coal mine in Queensland.
Australia: CS Energy has announced the 420 MW Unit 4 at the Callide power station will return to full power at the end of July. The unit suffered significant damage in a May 2021 explosion.
Canada: Teck Resources has completed the sales of 20 per cent and 3 per cent stakes in Elk Valley Resources (EVR) to Nippon Steel Corporation and POSCO. EVR holds Teck Resources metallurgical coal mines.
China: Thirteen workers were killed, and three are missing after a gas outburst at a coal mine in Henan province owned by the Pingdingshan Tianan Coal Mining Company.
Kenya: The operators of the Bamburi Cement plant in Mombasa have been ordered to suspend coal ash dumping after residents complained about pollution.
Russia: One miner was killed and another injured when groundwater flooded part of the Zapolyarnaya underground mine operated by VorkutaUgol.
South Africa: The collision of two Transnet coal trains has blocked the railway to the Richard’s Bay coal export terminal.
US: The Ohio Supreme Court has ruled unanimously in favour of a lower court decision freezing the assets of the former Public Utilities Commission of Ohio Chairman Sam Randazzo, who is accused of receiving a US$4.3 million bribe from FirstEnergy.
US: Plus Power has commissioned the 185 MW Kapolei Energy Storage battery to reduce renewables curtailment and provide other energy services after the September 2022 closure of Hawaii’s last coal unit.
US: A coalition of environmental groups has launched legal action against the US Forest Service for allowing coal hauling and road construction in the Cherry River watershed in West Virginia, home to a critically endangered fish, the candy darter.
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IEA projects renewables will overshadow coal in early 2025: The International Energy Agency (IEA) estimates that electricity generation from renewables will exceed coal power by early 2025 as cost declines for wind and solar undercut new coal plants. In its Renewables 2023 report, the IEA states that in 2023, 96 per cent of new utility-scale solar and onshore wind capacity had lower generation costs than new coal plants, with three-quarters of new wind and solar projects supplying cheaper electricity than existing coal and gas plants. The IEA said renewables will overtake coal generation in Europe, the US, and Brazil, with solar accounting for three-quarters of new renewables capacity, predominantly in China. The IEA warned that a barrier to further rollout of renewables includes overcapacity caused by new coal and gas fleets in ASEAN countries such as Indonesia, the Philippines, Thailand and Malaysia. The report said fossil fuel overcapacity could often exceed 50 per cent in some countries and reach over 90 per cent in Indonesia. (Guardian, International Energy Agency, International Energy Agency (Pdf])
Think tank calls for the new Polish government to rethink the role of coal: Forum Energii, a Polish energy policy think tank, has called on the new government to rethink the future role of coal in the power and heating sectors. Polish coal generation has fallen from an 84 per cent share of electricity a decade ago to about 64 per cent in 2023, with renewables generation increasing rapidly and growing power imports. The former government committed to keeping coal plants operating until 2049, but the state-owned mining companies – PGG, Tauron Wydobycie, and Weglokoks – have been hit by declining sales, lower sale prices, and higher costs. The three companies have pitched for 7 billion zloty (US$1.77 billion) to restore their finances. However, Poland’s power sector also faces rising European Union carbon prices, which particularly affect emissions-intensive lignite power plants, and a ban after 2028 on capacity payments. “If economic criteria were to be decisive, coal would disappear from the energy and heating by 2030,” said Joanna Mackowiak-Pandera from Forum Energii. (Reuters, Forum Energii [Polish])
Bulgarian minister says govt won’t close coal plants, the market will: Bulgaria’s Minister of Environment and Water, Julian Popov, said the government has ruled out closing any of the country’s 11 coal plants “administratively” but will leave decisions to the electricity market. Bulgaria currently has a coal exit deadline of 2038 but Popov said he doubts that any will operate after 2030. “The market will close them; it is closing them right now,” he said. Bulgaria currently has 4569 MW of coal capacity. As a member of the European Union, Bulgaria’s coal generation is exposed to the rising carbon price, which is currently about €80 per tonne (US$87 per tonne). The European Commission has approved Bulgaria’s just transition plans and will allocate €1.2 billion to support economic transition projects in the country’s three coal regions. (Balkan Green Energy News)
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Dutch bank moves to cut support for metallurgical coal funding: A new climate policy released by the Dutch bank ING states the bank will not provide “dedicated finance” to new or expanding metallurgical coal mines. ING said clients operating existing metallurgical coal mines will be pressed to explain “how they plan to align with 1.5-degree Celsius goals” by 2050. The bank has ruled out providing “new dedicated finance for new unabated blast furnaces or the life extension of existing unabated blast furnaces for steel making”. Reclaim Finance and BankTrack, NGOs that lobby financial institutions to end support for fossil fuels, welcomed the announcement as setting a minimum standard for other banks, with ING the first major bank to include steel facilities in its policy. The groups note that with project finance accounting for just 1.4 per cent of funding for metallurgical coal developers, ING’s policy should exclude corporate finance and bond services for companies developing steel infrastructure based on metallurgical coal. The groups warn that only restricting finance for “unabated” steel plants leaves the door open for companies promoting carbon capture and storage, a technology that has been promoted by thermal coal companies but has failed. (Global Trade Review, BankTrack, ING)
French steelmaker signs power deal as part of electric arc furnaces shift: ArcelorMittal has signed a letter of intent with government-owned Electricite de France SA to negotiate a long-term power purchase agreement to supply nuclear-linked electricity for its Dunkirk and Fos-sur-mer steelworks. ArcelorMittal SA and the French government have backed a €1.8 billion (US$2 billion) project to build two new electric arc furnaces and a 2.5 million tonne direct reduced iron plant at the company’s Dunkirk steelworks. The new furnaces will replace one of the three blast furnaces at the Dunkirk plant, which produces about five million tonnes of steel annually. The redevelopment project is currently subject to a final engineering and cost review and is scheduled for completion later this year. The French government has committed to providing €850 million for the project. In mid-2023, the French government paid €9.7 billion to renationalise the near-bankrupt EDF. (Bloomberg [paywall], ArcelorMittal)
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South Africa’s Department of Mineral Resources and Energy will host the first public engagement session on the draft Integrated Resources Plan 2023 online on 18 January between 1 pm and 4 pm (South African Standard Time). The announcement is here, and the link for registration is here.
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