Let’s end the silence on this canary in the climate coal mine
It’s time to train the spotlight on one critical, stubborn issue: the growth of unabated coal, write [registration required] John F. Kerry, the US Special Presidential Envoy for Climate and Fatih Birol, the Executive Director of the International Energy Agency in the Washington Post.
Can ‘just transition partnerships’ usher in the end of coal?
As the Just Energy Transition Partnerships with Indonesia, South Africa and Vietnam have revealed, there is a greater need for concessional financial and a streamlined process for delivering the deals, writes Chloe Farand in China Dialogue.
Greener steel production is the first step. Next comes scaling it up
The recent success of two green steel companies in raising several billion in equity and loans belies the magnitude of the challenge ahead. Trillions of dollars will be needed to decarbonise the global steel industry, writes Nathaniel Bullard in Bloomberg.
New Indonesian industrial park on Borneo, feted as ‘green,’ will be powered by coal, report says
The development of the huge PT Kalimantan Industrial Park in Indonesia includes coal power plants to supply a smelter touted to produce “green aluminium”, writes Victoria Milko in AP.
|
Welsh council rejects coal mine extension
Friends of the Earth Cymru has welcomed Carmarthenshire County Council’s planning committee’s unanimous decision rejecting Bryn Bach Coal’s application to extract 95,000 tonnes of coal from an extension of the Glan Lash Mine in Wales. The council report on the application noted that the Welsh Government policy precludes the licensing of new coal mines except in “wholly exceptional circumstances”. Bryn Bach Coal argued the coal was for industrial uses, primarily as a water filtration agent. Friends of the Earth said that even if coal from the site isn’t burnt, mining would produce methane emissions, and alternatives exist for water filtration. Haf Elgar from Friends of the Earth Cymru said Carmarthenshire councillors had “made the historic decision to put nature and climate first”. A company representative said it would appeal the council’s decision. (Wales Online, Friends of the Earth Cymru)
|
Colombia and Panama join alliance committed to phasing out coal power: Ahead of the United Nations Climate Ambition Summit, Colombia and Panama announced they have joined the Powering Past Coal Alliance and are committed to phasing out coal generation. Panama, which has the 305 MW Cobre Panamá power station, committed to phasing out coal power generation by the end of 2023. Colombia committed to working with the alliance to develop a plan for phasing out coal power generation. According to the Global Coal Plant Tracker, Colombia has five coal plants with a combined capacity of 1646 MW. Colombia is also the world’s sixth-largest coal exporter and shipped 46 million tonnes of thermal coal in 2022. (Business Green, Powering Past Coal Alliance)
Australian minister in court over coal mines: Two Australian coal mining companies, Whitehaven Coal subsidiary Narrabri Coal Operations and MACH Energy, have joined with Australia’s Environment Minister Tanya Plibersek in opposing an application before the Federal Court of Australia for judicial review of the minister’s climate risk assessment in approving new coal mines. In late 2022, the Environment Council of Central Queensland (ECoCeQ) requested that Plibersek reconsider and reject 19 coal and gas projects because of their potential greenhouse gas emissions and impacts on Australia’s environment. Plibersek agreed fossil fuel projects affect the climate and Australia’s environment. However, she determined that the impacts from the individual projects are not significant enough to be designated as a ‘controlling provision’ under the Environment Protection and Biodiversity Conservation Act to be considered before approving projects. The Australia Institute estimates the extension of the two mines would contribute over one billion tonnes of greenhouse gas emissions over the life of the mines. (SBS, Environmental Justice Australia)
Complaint filed over IFC's role in Indonesian coal plant expansion: A coalition of Indonesian and international NGOs have filed a complaint against the International Finance Corporation (IFC), the investment arm of the World Bank Group, over its 2019 equity investment in Hana Bank Indonesia. The bank subsequently provided a US$56 million loan to PT Indo Raya Tenaga for the 2000 MW expansion of the Suralaya coal plant. PENA Masyarakat and its partners argue that the project does not meet IFC standards and “likely cannot be brought into compliance” with them. The groups have requested that the Office of the Compliance Advisor Ombudsman (CAO) undertake a full compliance review of the IFC’s investment in the bank and that the construction of the two coal units either be suspended or, if that is not possible, retired early. The groups requested that the CAO protect the identities of the complainants as local community members face intimidation and threats for raising concerns about the project. (Benar News, PENA Masyarakat [Pdf])
Thungela appeals South African Water Tribunal rejection of water licence: Thungela Resources has confirmed it is appealing against the April 2023 decision of the Water Tribunal to reject a water use licence for the proposed Palmietkuilen coal mine. Thungela Resources, a company created when Anglo American spun off its coal projects in June 2021, proposed to produce 2.4 million tonnes of coal annually from the project it estimated could operate for 53 years. The tribunal dismissed Thungela’s appeal against the decision of the Department of Water and Sanitation and concluded “that socially and economically, the local municipalities and the country are better off without having to manage the environmental impacts and water contamination from the project”. It also found that there was no guarantee of sufficient resources “to address post-closure water contamination and treatment”. The High Court will hear Thungela’s appeal in 2024. (Business Live)
Mothballed US carbon capture and storage plant revived: JX Nippon has restarted the US$1.04 billion Petra Nova carbon capture and storage (CCS) plant on the 615 MW lignite-fired Unit 8 at the Parish Generating Station in Texas. The unit was modified to divert about 40 per cent of the exhaust to the CCS unit, which is designed to capture 90 per cent of the carbon dioxide. The captured carbon dioxide is pumped 82 miles (132 kilometres) to boost West Ranch oil field production. Before the CCS plant was completed, NRG Energy, which owns the Parish plant, stated the project was attractive when oil prices were over US$75 per barrel. Low oil prices and constant technical problems triggered the closure of the CCS unit in January 2021, with NRG Energy subsequently leaving the project consortium. (Reuters, JX Nippon [Pdf], Global Energy Monitor)
Indian push to facilitate increased Russian met coal exports: The Indian government is organising a workshop in Chennai on October 30 and November to further the development of the Eastern Maritime Corridor. The proposed corridor aims to facilitate metallurgical coal and other exports from Vladivostok to Chennai, which could cut up to 16 days off the 35-40 days it currently takes for shipments from St. Petersburg to Mumbai. India’s push to open up new options for coking coal imports comes as Indian steel mills are decreasing reliance on Australian cargoes. Two of the three ports in Chennai – the Ennore and Kattupalli ports – are owned by Adani subsidiaries. Marine Infrastructure Developer Private Limited (MIDPL), an Adani subsidiary, has proposed expanding the capacity of the Kattupalli port from its current 25 million tonnes per annum (Mtpa) to 320 Mtpa. The proposal has triggered widespread public and political opposition, especially from coastal villages reliant on fishing, leading to the indefinite delay in a public hearing on the proposed project. (Economic Times, Hindu Business Line, Adani Watch)
Dutch government agrees on compensation for RWE plant: The Dutch government has decided to pay RWE €331.8 million (US$355 million) in compensation after capping generation from the company’s 1600 MW Eemshaven power station at 35 per cent of capacity for 2022-24. The Dutch government initially imposed the cap to meet greenhouse gas emission reduction targets, but it was lifted in mid-2022 to reduce reliance on scarce and expensive gas after Russia invaded Ukraine. Compensation payments for Uniper and Onyx, which operate the other two coal plants in the Netherlands, are yet to be finalised. The Minister for Energy, Rob Jetten, said the government had allocated €730 million to compensate the three companies. (Reuters)
“Tripling renewables without also halting the building of new dirty coal plants would be like training for a marathon while smoking five packs of cigarettes a day,”
write [registration required] John F. Kerry, the US Special Presidential Envoy for Climate and Fatih Birol, the Executive Director of the International Energy Agency in the Washington Post.
|
Bangladesh: The S Alam Group’s controversial 1320 MW Banshkhali coal plant has been commissioned, a decade after it was first proposed.
China: Mine safety guidelines rule out the development of new mines with a production capacity of under 900,000 tonnes a year if there is a high risk of gas explosions or complex hydrogeological conditions.
Germany: The Left Party has criticised increased imports of Colombian coal, citing the social and environmental impacts of Glencore’s Cerrejon mine.
India: The Bombay High Court has dismissed an appeal by coal terminal operators against the Goa state government’s levy on coal and other hazardous materials.
Russia: Deputy Prime Minister Marat Khusnullin has backed the double tracking of the Baikal–Amur railway to boost coal export capacity to the Asian market. Sections of the current track are single-line only and not fully electrified.
South Africa: Residents complain that Transnet is not taking sufficient care to minimise coal dust pollution in the suburbs adjoining the Richards Bay Coal Terminal.
US: Residents, concerned about air pollution and safety risk, are calling for an end to coal exports from CSX’s Curtis Bay terminal. In December 2021, a methane gas explosion on a conveyor belt shattered windows and blanketed nearby houses in coal dust.
Vietnam: The German Agency for International Cooperation has backed the use of up to 10 per cent of domestic biomass to reduce coal consumption.
|
Glencore lost the support of two of its largest investors over climate plan: New US securities filings reveal that two of Glencore’s largest shareholders, BlackRock and MFS Investment Management (MFS), both voted against the company’s latest climate plant at the annual general meeting in late May. Opposition to the company’s climate plan reached 30 per cent of shares voted, up from 24 per cent in 2022, with BlackRock stating it voted against the plan due to “inconsistencies” in Glencore’s strategy. BlackRock holds an 8.2 per cent stake in Glencore worth more than US$5 billion, and MFS has a 1.1 per cent stake. Glencore is the world’s largest thermal coal exporter, with major mines in Colombia, Australia and South Africa. With the support of a coalition of investors, the Australasian Centre for Corporate Responsibility and UK-based NGO ShareAction filed a shareholder resolution seeking greater disclosure of how the company’s thermal coal sales are consistent with the Paris objective of keeping global temperature increase to 1.5°C. (Financial Times)
Mauritius cancelled the business licence of funds invested in Adani: More than six months before the release of the Hindenburg Research report on Adani, the Mauritian Financial Services Commission cancelled the business and investment licences of Emerging India Fund Management, the controlling shareholder of two Mauritius-based funds that invested in listed Adani companies. A new report by BankTrack and Toxic Bonds notes that Barclays has underwritten every dollar-denominated bond Adani has issued and that this puts the bank at “financial risk, reputational damage, and potential legal action, for misrepresenting investment risks to investors”. The groups called on Barclays to cease providing new finance to all Adani Group entities and terminate existing support “where possible”. (Indian Express, BankTrack [Pdf])
Bulgarian state-owned coal company flips to losses: Bulgaria’s state-owned lignite mining company Mini Maritsa-Iztok has reported a €26 million (US$27.8 million) loss for the first half of 2023, tracking the decline in coal prices and the volume of power exports. Mini Maritsa-Iztok made a profit of €20 million (US$21.4 million) in the first half of 2022. The primary customer of Mini Maritsa-Iztok is the state-owned Bulgarian Energy Holding’s 1602 MW Maritsa-Iztok 2 lignite plant. The European energy crisis of 2022 spurred a surge in power exports from Bulgaria. Mini Maritsa-Iztok also entered into a contract to export 1.75 million tonnes of coal to the Virom Group in Serbia. Bulgaria has not commenced transition planning for its coal region and remains ineligible for up to €1 billion (US$1.07 billion) in European Union funding. (Euractiv [registration required])
South Korean banks boost exposure to coal: Data submitted to the National Assembly Budget Office has revealed that the Korea Development Bank (KDB) and the Export-Import Bank of Korea (Eximbank) have increased their financial exposure to coal plants. KDB’s coal loan commitments increased by 15.1 per cent in 2022 to 1.4 trillion won (US$1.05 billion). KDB is providing finance to two projects in Indonesia, the 2000 MW Jawa 9 & 10 project and the 200 MW Kalsel plant. Eximbank’s coal exposure has increased from 2.5 trillion won (US$1.9 billion) in 2018 to 3.7 trillion won (US$2.8 billion) in 2022 with its support for eight coal power projects, of which two – the Java 9&10 project in Indonesia and the 1330 MW Vung Ang 2 project in Vietnam – are still under construction. Eximbank said its exposure is increasing as disbursements proceed for projects under construction and approved before it ruled out new coal projects in 2021. (Korea Times)
After 15 years under construction, South African coal plant fails to deliver: South African energy analyst Chris Yelland notes that the 4800 MW Kusile coal plant is still not delivering electricity to the grid, despite spending 233 billion rand (US$12.3 billion) on the project over 15 years. In a recent video, Yelland noted that the 800 MW Units 1, 2, and 3 have broken down, and unit 4 is offline for scheduled maintenance. The final two units at the plant are not expected to be commissioned until April 2024 and February 2025. South Africa’s Minister of Electricity, Kgosientsho Ramokgopa, has repeatedly stated that load shedding will ease when Kusile’s five units deliver 3000 MW to the grid. Yelland said that the nominal capacity of each unit will be about 710 MW after allowing for internal energy use. He said the units might only have an energy availability factor of 50 per cent, in which case only about 350 MW could reliably be supplied to the grid. (Daily Investor)
Private utility lobbies Pakistan over conversion of stranded plant: AsiaPak International, the new owner of K-Electric, is lobbying the Pakistan government for approval to convert the 660 MW unit 5 at the Jamshoro coal plant near Hyderabad to operate solely on lignite from the Thar coal fields. AsiaPak International recently bought a 54 per cent controlling interest in K-Electric. The unit is 95 per cent complete but is designed to run on 80 per cent imported coal, rendering the plant uneconomic. AsiaPak International said it would cost US$50 to convert the unit to run on lignite. AsiaPak International is an investor in the Block-1 Thar lignite mine, which K-Electric would rely on to supply about 3.1 million tonnes of lignite annually. (Arab News)
|
UK govt grant for electric arc furnace conversion for steelworks: The UK government has approved a grant of up to £500 million (US$519 million) for Tata Steel to convert the Port Talbot steelworks to an electric arc furnace. The proposed £1.25 billion (US$1.55 billion) plant could be commissioned within three years and cut greenhouse gas emissions by five million tonnes yearly, about 1.5 per cent of the UK’s annual emissions. The government estimates that about 3000 jobs could be lost due to the switch but will establish a transition board with the Welsh government and Tata Steel, with up to £100 million to support affected staff and the local community. Tata Steel opted for an electric arc furnace as a proven technology compared to hydrogen and carbon capture and storage. (Guardian, UK Government, Tata Steel Europe)
|
Steel decarbonisation in India, Institute for Energy Economics and Financial Analysis and JMK Research & Analytics, September 2023. (Pdf) (A media release on the report is here.)
This 47-page report outlines the steps required to set the growing Indian steel sector on a path to decarbonisation.
|
|
