Indonesia elects founder of company with coal interests as President: Preliminary election results indicate Prabowo Subianto, the current Minister for Defence, has been elected President of Indonesia. Prabowo, the wealthiest of all the 2024 presidential candidates, is a former special forces officer who was banned in 1988 from entering the US because of alleged human rights violations. He founded the Nusantara Group in 2001, which expanded into coal, gas, agriculture and fisheries operations. Probowo has backed Indonesia’s expansion of the nickel industry, which has become a significant driver of increased captive coal generation. While details on the Nusantara Group’s current business interests are scant, it reportedly retains major coal concessions in East Kalimantan. Incumbent President Joko Widodo will leave office in October after serving two five-year terms, the constitutional limit. (Al Jazeera, NPR, CNN)

Uproar in Chhattisgarh parliament over approval for coal mines: Proceedings in Chhattisgarh’s state House of Assembly were suspended after the speaker ruled out allowing discussion on the clearing of parts of the Hasdeo-Arand forest for a coal mine. Congress MPs objected to the ruling and were suspended. In July 2022, the Assembly unanimously supported a resolution opposing the allocation of coal blocks in the Hasdeo-Arand forest. However, the Bharatiya Janata Party (BJP) won the December 2023 election. The Leader of the Opposition, Congress MP Charan Das Mahant, said that before the new BJP government had been sworn in, the principal chief conservator of forest issued an order allowing the clearance of 91 hectares of forest. (Economic Times)

Court directs charges against former Indian Secretary of Coal: Delhi court Special Judge Sanjay Bansal has directed that charges be laid against former Secretary of Coal, H C Gupta, and former joint secretary K S Kropha over the allocation of the Hutar and Hurilong coal blocks in Jharkhand to Contisteel. Contisteel, a subsidiary of Rathi Super Steel, is also set to face charges. The judge found that a prima facie case had been made out justifying charges for cheating and criminal conspiracy under the Prevention of Corruption Act. The case is due back before the court on March 5. (The Print)

New charges in Ohio utility bailout scandal: Ohio Attorney General Dave Yost announced charges against two former FirstEnergy executives, ex-CEO Chuck Jones and ex-Senior Vice President of External Affairs Michael Dowling, and former Ohio Public Utilities Commission (PUCO) Chairman Sam Randazzo, over their roles in the US$61 million House Bill 6 bailout scandal. The indictment on state charges accuses Jones and Dowling of spending FirstEnergy funds to “improperly influence Randazzo to exercise the authority of PUCO chairman to advance FirstEnergy’s regulatory and policy agendas”. Jones and Dowling face 10 and 12 charges, respectively. Both face charges of bribery and another of engaging in a pattern of corrupt activity. Randazzo has been charged with 22 offences, including eight money laundering counts and six counts of tampering with records. The two former executives and Randazzo deny any wrongdoing.Two companies controlled by Randazzo – the Sustainability Funding Alliance of Ohio and IEU-Ohio Administration Company – face 11 and five criminal charges, respectively. HB6 gutted Ohio’s renewables and energy efficiency standards and ensured subsidies for coal and nuclear plants. The subsidy for FirstEnergy’s nuclear plants has been repealed, but funding for two coal plants remains. A federal investigation into potential breaches of federal law in the HB6 scandal is continuing. (Akron Beacon Journal, Ohio Attorney General)

Canadian court overturns decision rejecting coal mine: The Federal Court of Canada has overturned a 2021 decision by federal Minister for the Environment, Steven Guilbeault, denying a permit for the proposed Grassy Mountain metallurgical coal mine in Alberta. Benga Mining, along with two First Nations groups, appealed Guilbeault’s decision. The court dismissed Benga Mining’s appeal but ruled in favour of the Piikani and Stoney First Nations, who support the mine proceeding and have confidential benefits agreements with Benga. Judge Richard Southcott ruled the First Nations groups were “deprived of procedural fairness” after they were promised consultation after the release of the Report of the Joint Review Panel on the proposed mine, but this did not occur. The minister will now be required to consult the First Nations groups and reconsider the application for the mine. Since the initial decision, Benga Mining has been renamed Northback. (CityNews, Federal Court of Canada)

Explosion at Kyrgyzstan coal plant dogged by controversy: A major explosion at one of the units at the Bishkek combined heat and power plants injured five workers, three seriously, and left parts of the city without heat and hot water for a day. The Bishkek plant, which is located in the capital of Kyrgyzstan, was at the centre of a controversy over a US$386 million loan agreement with China’s Export-Import Bank for the construction of two new 150 MW units by a Chinese company, Tebian Electric Apparatus Stock Company (TBEA). The new plant broke down shortly after it was commissioned. Investigations revealed about US$100 million had been misappropriated and two former prime ministers were convicted for their role in their scandal. After the latest accident, Kyrgyz President Sadyr Japarov vowed the plant would be modernised. (The Diplomat, BNEIntellinews, Global Energy Monitor)

Appeal heard against expansion of Welsh metallurgical coal mine: Lawyers for Coal Action Network have argued before the UK Court of Appeal that the Welsh government has the power to stop the expansion of the Aberpergwm coal mine, which supplies about 70 per cent of its metallurgical coal production to Tata’s Port Talbot steelworks. The UK Coal Authority approved Energybuild’s proposal to extend the mine, providing access to an additional 42 million tonnes of coal. Coal Action Network estimates the expansion would emit up to 1.17 million tonnes of methane, a potent greenhouse gas, and up to 120 million tonnes of carbon dioxide from coal burning. The appeal centred on whether the Welsh Government, which was granted greater decision-making powers over coal mining in 2017, should have the final say on the expansion. The Welsh government told the court that the Coal Authority could not have rejected the expansion. Coal Action Network said a ruling on the appeal is expected in the next 6 to 12 weeks. (BBC, The Ecologist, Coal Action Network)

Two US coal train accidents: A Union Pacific train hauling coal through the Feather River Canyon in northern California derailed, with several loaded wagons falling into the Feather River. The Californian government’s Office of Spill Prevention and Response expressed concern that coal spilled into the river could smother aquatic organisms. In Nebraska, 57 loaded coal wagons in a BNSF train derailed near Cairo, spilling the contents beside the rail tracks. The accident blocked the track in both directions for a day. (CBS News, News Channel Nebraska)

Australia: The Australian Energy Regulator has launched legal action against the operator of the 848 MW Callide C coal plant for allegedly breaching market rules and not meeting performance standards. An explosion at the plant triggered widespread blackouts in Queensland.

European coal generation collapses: Coal generation in 2023 slumped by 26 per cent in 2023 compared to the year before, falling to an all-time low of 12 per cent of Europe’s electricity in 2023, according to the European Electricity Review. The report, published by Ember, a climate policy think tank, found that factors undercutting coal generation included a 3.8 per cent decline in demand, a rebound in hydro generation after a severe drought and increased wind and solar generation. Since 2016, European coal generation has halved as wind and solar generation increased. The report notes that while coal plant closures slowed during the energy crisis triggered by Russia’s February 2022 invasion of Ukraine, up to one-fifth of the remaining coal fleet is slated for closure in 2024 and 2025. (Euronews, Ember, Ember [Pdf])

Indonesian nickel sector driving growth in domestic coal demand: An Indonesian coal company executive said it was likely that up to 70 million tonnes of thermal coal could be supplied to the nickel sector by the end of the year both for direct use and in captive power plants. They estimated a further 10 to 25 million tonnes in coal demand for the nickel sector in 2025. In January 2020, the government imposed a ban on the export of nickel ore to drive investment in downstream processing before export. Since then refined nickel production has more than doubled to 1.8 million tonnes though much of the increased smelting capacity is geared towards catering for stainless steel production rather than battery-grade nickel. Indonesian coal industry sources say the government has set a nominal coal production target of 710 million tonnes in 2024, with 181 million tonnes for domestic demand. An anonymous coal mining executive estimated that even assuming a five to seven per cent decline in seaborne thermal coal demand, Indonesia could still export coal for the next two decades. (S & P Global)

Audit company didn’t investigate tip-off that coal test results were altered: An executive for EY, a global accounting firm, told an Australian Senate committee inquiry that it had not investigated whistleblower allegations after its auditors were told that Peabody Energy’s accounts were inaccurate as coal export test results had been falsified to inflate the value of the coal. The whistleblower, who had worked at Peabody Energy, submitted to the inquiry that the company’s financial results from 2003 to 2008 were false. EY’s head of risk management for Oceania, Leigh Walker, told independent senator David Pocock that the allegations against Peabody and the testing company, ALS, had not been proven. Pocock said he found it “extraordinary” that the accounting firm had not undertaken an internal investigation of the claims but relied solely on the statements of Peabody and ALS. Independent MP Andrew Wilkie tabled documents which he told parliament provided “evidence of widespread fraud in the Australian export coal industry involving testing laboratories, exporters and auditors”. (Australian Financial Review [paywall], Andrew Wilkie MP)

Eskom loadshedding crisis escalates then eases: Boiler tube leaks at five of Eskom’s coal plants contributed to extended loadshedding affecting South African electricity consumers over the last week. Last Friday evening, Eskom announced Stage 6 loadshedding – with each stage equal to 1000 MW of load – due to unplanned outages of 14,579 MW of generating capacity. A further 7316MW of capacity was out of service for planned maintenance. Loadshedding restrictions have subsequently eased to Stage 3. Julius Malema, the leader of the populist Economic Freedom Fighters (EFF) political party, said at the launch of the party’s election manifesto that it would oppose the closure of coal power plants before 2032 and would turn to China to repair existing coal units. Malema said he would also support a procurement process for 3-6000 MW of nuclear capacity. A general election is due by August 2024, with polling suggesting the ruling African National Congress government could lose its majority in the 400-seat parliament. The EFF currently holds 44 seats in parliament, with polling suggesting it could significantly increase its share of the vote at the expense of the ANC. (News24, Mail & Guardian, Eskom)

Indian utility touts expansion plans as Modi seeks pre-election photo opportunities: NTPC has confirmed it aims to build a further 16,000 MW of coal capacity in the next few years in addition to the 10,000 MW already under construction. NTPC, a federal-government-owned utility, generates about one-quarter of India’s electricity. With a general election due by May, Prime Minister Narendra Modi has sought to associate himself with new coal plants, dedicating NTPC’s 1600 MW Darlipali Super Thermal Power Station that was commissioned in 2021 and the captive 250 MW coal unit at the Rourkela power station that was commissioned in 2022. The Rourkela plant powers the Steel Authority of India’s Rourkela steel plant. Modi also laid the foundation stone for NTPC’s 1320 MW expansion of the Talcher Thermal Power Project in Odisha. In a separate development, Adani Power has reportedly won the auction for Lanco’s 600 MW Amarkantak power plant with a bid of 41 billion rupees (US$494 million). A further two 600 MW coal units at the plant are currently under construction. (Economic Times, Economic Times, NTPC)

Group says Australian iron ore miners deal suggests CCS is a dead end: Rio Tinto and BHP, Australia’s two largest iron ore exporters, have announced a joint agreement with BlueScope Steel to undertake a pre-feasibility study on the potential development of a renewables-powered direct reduced iron (DRI) pilot plant using from ore from the Pilbara region in West Australia. The Institute for Energy Economics & Financial Analysis said the announcement indicated that carbon capture utilisation and storage (CCUS) will not play a meaningful role in steel decarbonisation. DRI-fed electric arc furnaces require a higher grade of iron ore than is currently produced from most of the major mines in Western Australia, potentially undercutting demand for Australia’s biggest export. BHP produced over 250 million tonnes of iron ore in 2022-23, with Rio Tinto exporting over 330 million tonnes in 2023. BHP is also the world’s largest exporter of metallurgical coal and has previously promoted carbon capture and storage as the preferred route to decarbonising the steel sector. In 2016, BHP agreed to provide C$20 million (US$15 million) over five years to assess the use of CCS technology at Saskpower’s Boundary Dam plant in Canada. (BHP, Institute for Energy Economics & Financial Analysis)

Raising ambition on steel decarbonisation: The 2023 E3G Steel Policy Scorecard, E3G, February 2024. (Pdf). (The executive summary is here, and individual country profiles are here.)

This 63-page report reviews the progress of G7 countries – Brazil, Italy, the US, the UK, Germany, France, Canada and Japan – in decarbonising their respective steel sectors. The report provides a detailed comparison of measures required to put the industry on a low emissions pathway.