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November 30, 2023
Issue 492  |  View Past Issues
CoalWire
Published by Global Energy Monitor

Editor's Note

Global Energy Monitor’s latest update on global coal plant construction provides encouraging news: outside of China, the commencement of work on new coal plants has dropped to the lowest level since 2015. While the pool of countries pursuing new coal plants continues to narrow, there are worrying signs of the revival of once-abandoned projects in countries such as India and Indonesia. China’s policy of ending support for new overseas coal plants continues to play out. Two of Cambodia’s three new Chinese-backed coal power projects have stalled, with one now operating. In Pakistan, an imported coal project the government wanted to cancel may proceed because of the insistence of the Chinese backers.

A new US study has confirmed the deadly health toll associated with coal plants, especially those operating without pollution control equipment. The surprising result from the study is that PM2.5 fine particle pollution from coal plants is far deadlier than PM2.5 pollution from other sources. It is a study relevant to countries such as India, where the requirement for installing pollution control measures on existing coal plants has been deferred several times. For major cities such as New Delhi, the result has been deadly air quality.

Bob Burton

Features

China’s new capacity payment risks locking in coal

China’s new coal capacity payment scheme has drawbacks that could result in higher costs or a slower transition to renewable energy, writes Anders Hove in China Dialogue.

Concern over Glencore’s bid for Teck’s Canadian coal mines

Teck’s plan to sell its Elk Valley coal mines to Swiss mining giant Glencore has raised alarm bells on both sides of the Canada-U.S. border amid negotiations over an international inquiry into extensive water contamination from the mines, writes Ainslie Cruickshank in The Narwhal.

Opposition to rezoning of water source for South African coal mine

South African environmental rights organisations are campaigning to prevent coal mining in a strategic water source area, writes Onke Ngcuka in the Daily Maverick.

Top News

New coal plant construction falls to record low outside China: New coal plant construction in 2023 has fallen to less than 2000 megawatt (MW) outside China and is on track to reach the lowest level for the same group of countries since Global Energy Monitors commenced annual data collection in 2015. The yearly average of new coal plant construction from 2015 to 2022 was 16,000 MW. China currently has 136,200 MW of new coal plants under construction. Outside China, new coal plant construction is heavily concentrated in just four countries: India (31,600 MW), Indonesia (14,500 MW), Bangladesh (5800 MW) and Vietnam (5400 MW). Outside China, 18,300 MW of new coal capacity was either shelved or cancelled, almost offset by 15,300 MW of new projects proposed in India, Indonesia, and Kazakhstan. A further 4200 MW of stalled projects have been revived. (Down to Earth, Global Energy Monitor)

US study finds coal-based PM2.2 pollution more deadly than thought: A study published in Science has found that PM2.5 fine particulate air pollutants from coal-fired power plants are associated with a risk of mortality more than double that from exposure to PM2.5 pollution from other sources. The study assessed emissions data from 480 coal power plants in the US between 1999 and 2020 and Medicare records of Americans 65 and older from 1999 to 2016. The study estimated that 390,000 of the 460,000 deaths attributable to coal plant pollution occurred between 1999 and 2007, declining rapidly after new pollution limits and coal plant closures to an annual total of 1,600 by 2020. The study found that a one microgram per cubic meter of air (μg/m3) increase in average yearly coal PM2.5 was associated with a 1.12 per cent increase in all-cause mortality. This mortality risk is 2.1 times greater than PM2.5 from any other source. The paper’s lead author, Lucas Henneman from George Mason University, said that PM2.5 pollution from coal plants is “much more harmful than we thought, and its mortality burden has been seriously underestimated”. The US has 200 coal plants that generated about 20 per cent of electricity in 2022. (The Harvard Gazette, Science)

More than 100 arrested at waterborne blockade of Australian coal port: One hundred and nine people were arrested after a two-day marine-based blockade of the main shipping channel to access the Newcastle coal terminal, the world’s largest export coal terminal. In 2022, more than 136 million tonnes of coal was exported through the port. After extensive negotiations, New South Wales Police allowed a 30-hour protest from 10 am on Saturday, in which protestors took turns paddling out into the main shipping channel. With the expiry of the 4 pm deadline to clear access to the port, police began arrests, including a 97-year-old retired Uniting Church minister. Rising Tide hoped to block the export of about 500,000 tonnes of coal in the two-day protest. (Guardian, Rising Tide)

Court overturns permit for expansion of US mine: The Montana Supreme Court has set aside a Board of Environmental Review ruling rejecting an appeal by the Montana Environmental Information Center and Sierra Club against a Department of Environmental Quality (DEQ) decision to allow the expansion of Westmoreland Mining’s Rosebud mine. The groups had argued that damage from mining to the upper East Fork of Armell’s Creek, which flows into the Yellowstone River, meant that DEQ should not have granted a permit for the mine expansion. The decision set aside a permit for Area B of the mine but is likely to affect two other permits for the project. The Rosebud mine supplies coal to the 1566 MW Colstrip Power Plant. (Billings Gazette)

Dutch election result casts a shadow over coal plant closures: Geert Wilders’ far-right PVV party won the largest number of seats at the November 22 Dutch election and has the opportunity to try to form a minority government. PVV’s election manifesto backed the continued operation of coal and gas plants, opposed new solar and wind projects, and backed the construction of new nuclear power plants. However, there is uncertainty about whether Wilders can form a government or agree with potential partners on his hardline climate policies. The PVV’s potential centre-right partners – the VVD and the NSC – support the Paris Agreement. RWE and Uniper, which operate coal plants in the Netherlands, have previously lodged appeals against a District Court of The Hague decision that the government does not have to compensate the utilities as the law banning coal generation after 2030 was “lawful, proportionate and foreseeable”. (Guardian, France24)

Coalition wants coal phase-out agreement at COP28: Fifteen member countries of the Powering Past Coal Alliance have written to Dr Sultan Al Jaber requesting the COP28 climate conference in the United Arab Emirates (UAE) work to reach an agreement on “immediately” ending the construction of new unabated coal plants. The coalition of countries also wants agreement on phasing out existing power stations in line with the Paris Agreement goal of limiting the global temperature increase to 1.5°C above pre-industrial levels. The alliance wants the climate conference to agree on ending the financing of new coal plants, providing financial support for a just transition for coal-dependent communities, and supporting a transition to clean energy. The signatories to the letter include ministers representing Canada, Chile, Colombia, Denmark, France, Germany, Greece, the Netherlands, Niue, Panama, Slovenia, Spain, Sweden, the United Kingdom and Vanuatu. Leaked documents indicate that Al Jaber and the UAE see the climate conference as a vehicle to advance oil and gas deals. (Powering Past Coal Alliance, Center for Climate Reporting)

Court-appointed expert finds illegal mining continuing in Meghalaya state: The Meghalaya High Court has accepted a report by retired Justice Brojendra Katakey that ‘rat hole’ coal mining is continuing to operate illegally despite a 2014 National Green Tribunal (NGT) ruling banning the practice. The practice involves the construction of small holes, often by children, to extract coal from narrow coal seams and often results in fatalities, pollution of waterways and damage to forests and wildlife reserves. During a November 7 inspection, Katakey found illegal coal mining, stockpiles, transportation and a weighbridge, and coal missing from a government stockpile of previously seized coal. Meghalaya state government has appealed against the NGT ruling, while the central government has appealed against a High Court direction for the Central Industrial Security Force to enforce the ban. In late 2018, the social and environmental rights activist Agnes Kharshiing and her companion were violently attacked by a mob after collecting evidence of the violation of the ban. (New Indian Express)

Queensland agency recommends go-ahead for new coal mine: The Queensland Coordinator-General has recommended approval of Whitehaven Coal’s proposed Winchester South mine to produce 17 million tonnes of thermal and metallurgical coal a year for up to 28 years. The mine will produce up to 583 million tonnes of greenhouse gas emissions, clear 2000 hectares of habitat of threatened species and leave three unrehabilitated mine pits. The proposed mine also requires the approval of the federal Minister for Environment, Tanya Plibersek. The decision comes as the Queensland Department of Environment and Science rejected an environmental permit to construct a 1400 MW coal plant proposed by Waratah Coal, a company owned by mining and property billionaire Clive Palmer. The department determined the project would “contribute to the impacts of climate change” and would be “considered inequitable in relation to the impacts to future generations.” (InQld, ABC News, Queensland Coordinator-General, Lock the Gate)

“There’s no substitute for water; there’s a substitute for coal. Why are we even considering mining coal in 2023 over a strategic water source in an arid, water-scarce country,”

asks Dr Bill Harding, limnologist and environmental law specialist of plans to allow coal mining in South Africa’s Mabola Protected Environment.

News

Australia: Queensland mining regulator Kate du Preez worked for the government agency for six weeks after Anglo American appointed her Head of Sustainability and Corporate Affairs.

Canada: The Alberta Wilderness Association says CST Canada Coal’s application to extend two pits should not be considered until Alberta Energy Regulator investigations into wastewater discharges at the company’s mines are complete.

India: The Supreme Court has reserved its judgment on public interest petitions seeking a court-ordered examination of the Hindenburg Research allegations against the Adani Group.

Romania: Coal use in power generation declined by 20.5 per cent in the 12 months to September 2023.

Slovakia: Slovenske Elektrarne confirms that the 440 MW Vojany coal plant will close in the first half of 2024.

South Africa: The National Prosecuting Authority has seized equipment used in the alleged illegal mining of 270,000 tons of coal on a farm between November 2021 and September 2023.

US: Court documents indicate that the federal criminal investigation is continuing into FirstEnergy and a subsidiary over the US$61 million scandal over a bill to bailout two coal and two nuclear plants.

Companies + Markets

South Africa agrees to just transition deal: The South African government has approved the US$8.8 billion Just Energy Transition Investment Plan, with the final deal to be revealed at the COP28 conference in Dubai. The Just Energy Transition Partnership was first announced in November 2021 at the Glasgow climate conference, intending to finance support for the rollout of renewables, new transmission capacity, vehicle manufacturing and support for regions in transition. The investment plan was delayed by opposition from some unions and pro-coal ministers. The Minister for Forestry, Fisheries and Environment, Barbara Creecy, said part of the funding is to support initiatives in Mpumalanga province, which hosts Eskom’s coal plants and associated coal mines. Creecy said that further grant funding must be secured “to prevent workers and communities in the coal value chain from being the victims of the transition”. (News24)

Two Cambodian coal plants stall: Two coal plants in Cambodia – the 265 MW Han Seng plant in Oddar Meanchey province and the Royal Group’s 700 MW plant in Koh Kong province – appear to have stalled despite initially appearing to have escaped China’s September 2021 commitment to end support for new coal plants funded through the Belt and Road Initiative. Construction work on the Han Seng plant has been stalled for a year, security guards at the site haven’t been paid for months, and residents are unsure if or when work will resume. No work has been undertaken at the site of the Royal Group project, but residents complained of heavy-handed evictions from their land. The only project completed is the International Investment Development Group’s 700 MW coal plant in Sihanoukville province. (China Dialogue)

Report finds coal plants around New Delhi still breaching standards: A report by the Centre for Science and Environment (CSE) argues that the ongoing air pollution crisis in the New Delhi National Capital Region (NCR) has been made worse by the failure of the nine of the 11 coal plants in the region to comply with air pollution standards. In December 2015, the Ministry of Environment, Forest and Climate Change announced new emissions limits for coal plants to take effect in December 2017. As this deadline neared, the government delayed the limits for plants in the NCR to December 2019. Despite the delay, all the plants, except for the 1820 MW Dadri TPP and the 1320 MW Mahatma Gandhi plant, failed to meet the deadline. A new deadline for compliance was set to March 2021, which was later extended to 2026 for seven plants in the region. Despite the constant changes, all plants have exceeded sulphur dioxide limits, and four plants have exceeded nitrogen oxides standards. (EnergyCentral, Centre for Science and Environment)

Western Balkans lag on coal phase-out plans: An assessment by Climate Action Network (CAN) of the draft National Energy and Climate Plans submitted to the Energy Secretariat has found submissions by Western Balkans lacking details on coal phase-out plans by 2030. The plan submitted by Bosnia and Herzegovina envisages greenhouse gas emissions from coal power plants accounting for 40.4 per cent of national emissions in 2030, down just 4.3 per cent from current levels. Kosovo’s plan outlines the refurbishment of units at the Kosovo A plant, which will increase lignite capacity from 864 MW to 934 MW, with the plant slated to operate until 2040. Serbia’s plan reveals that coal plant emissions account for half of the country’s greenhouse gas emissions. The draft plan states the coal capacity will decline from 4420 MW to 3670 MW in 2030, a 16 per cent reduction. CAN has urged the Energy Community to require detailed coal retirement plans and increased renewable capacity. (Reuters, Coal Action Network Europe [Pdf])

Chinese-backed coal plant in Pakistan inches towards approval: The CIHC Pak Power Company has reportedly agreed to start work on the proposed 330 MW Gwadar coal power plant, subject to the finalisation of a revised tariff agreement by the National Electric Power Regulatory Authority (NEPRA). The government of Pakistan has previously proposed scrapping the imported coal plant and either building a renewables project or moving it inland to run on Thar lignite, but the Chinese project developer objected. China insisted the project would only gain support as part of the China-Pakistan Economic Corridor program if it were an imported coal plant. In August 2023, NEPRA reportedly increased the power station’s power tariff from 7.9 rupees per kilowatt hour (US$0.03 per kWh) to 22.34 rupees per kWh (US$0.08 per kWh) due to the devaluation of the rupee. In a separate development, Ghani Chemical Industries Limited, which produces industrial gases and chemicals, has informed shareholders that it plans to build a 7 MW coal plant at Port Qasim rather than relying on purchasing expensive power from the grid. (Business Recorder, Business Recorder)

Pressure grows on Indonesian government over domestic price cap: The Indonesian government is under pressure from the Just Energy Transition Partnership secretariat and analysts to revise its domestic coal price cap to increase the attractiveness of renewable generation to the public utility, PLN. Indonesia’s thermal coal exporters have long objected to the domestic market obligation to supply power generators at a maximum of US$70 per tonne, a far lower price than they can achieve on the export market. Electricity sold by PLN is also regulated to keep costs down for domestic consumers. The executive director of the Institute for Essential Services Reform, Fabby Tumiwa, says the low coal price and electricity price regulation work to allow coal to undercut the cost of new renewables generation. The Institute for Energy Economics and Financial Analysis has proposed that PLN could be compensated for paying the market price of coal by imposing a per tonne levy on coal producers to be paid to the utility. (Jakarta Post)

Green Steel Transition

Most banks keep backing metallurgical coal projects and companies: BNP Paribas SA, the biggest bank in the European Union, has updated its climate policy to exclude support for metallurgical coal projects. The new report by Reclaim Finance revealed that since the Paris Agreement was negotiated in late 2015, the world’s largest 100 banks – including BNP Paribas – have provided US$557 billion in finance to the 50 biggest developers in the metallurgical coal sector. The report found that of the 100 financial institutions reviewed, only five restrict metallurgical coal financing at a project level, and none exclude general corporate funding to companies involved in the sector. The report notes that, outside of China, 98 per cent of the finance provided between 2016 and June 2023 went to just five companies: Glencore, Mitsubishi Corporation, Teck Resources, BHP and Whitehaven Coal. These five companies account for 14.4 per cent of planned metallurgical coal production capacity. (Mining.com, Reclaim Finance [Pdf])

Resources

Current issues in KPXs governance and policy proposal for sustainable change, Solutions For Our Climate, November 2023. (Pdf)

This 39-page report outlines proposals to ensure the independence and neutrality of Korea Power Exchange from Korea Electric Power Corporation, the incumbent state-owned utility that is heavily reliant on fossil fuels.
 

In The Dark: underreporting of coal mine methane is a major climate risk, Ember, November 2023.

This 25-page report estimates methane emissions from coal mines may be twice as large as reported by governments.