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China to ban all coal use in Beijing by 2020

BEIJING (AP) — China’s smog-plagued capital has announced plans to ban the use of coal by the end of 2020 as the country fights deadly levels of pollution, especially in major cities. Beijing’s Municipal Environmental Protection Bureau posted the plan on its website Monday, saying the city would instead prioritize electricity and natural gas for heating. The official Xinhua News Agency said coal accounted for a quarter of Beijing’s energy consumption in 2012 and 22 percent of the fine particles floating in the city’s air. Motor vehicles, industrial production and general dust also contributed to pollution in the 21 million-person city. Even with the Beijing ban, coal use is expected to soar in China. Coal-fired power and heating is a major generator of greenhouse gases and has helped turn China into the world’s largest emitter of carbon and other heat-trapping gases. Pressure is growing on China’s central government to […]

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Shipping Rates Drop as China Hydro Power Cuts Coal Need

Record production of hydropower from China ’s Three Gorges and newer dams is displacing so much coal that rates to transport it have plunged to about record lows, roiling the shipping market. Daily earnings for Panamaxes, vessels that are about 750 feet long and get most of their spot cargoes from hauling coal, slumped as much as 76 percent this year, getting to within $26 of an all-time low. China started hydroelectric plants this year with enough generation to replace 26 million tons of coal, or about 370 cargoes, data compiled by Bloomberg show. The extra power means less imports and weaker freight rates, Morgan Stanley estimates. While global shipments of iron ore and grain are rising, China’s decreasing appetite for imported coal is a challenge to transporters already seeing weaker rates because of an oversupply of Panamaxes. The world’s second biggest economy’s efforts to curb air pollution will […]

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Weather more than rail issues likely cause of soft US OTC prices: analyst

Mild summer weather, not rail problems, is the biggest reason for softness in the US over-the-counter coal market, Ted O’Brien, an analyst with Doyle Trading Consultants said Wednesday. The effect is most acute in the Powder River Basin market, but it has also kept Central Appalachia prices soft. "Lots of people I talk to say you look at the weather in Texas and that dictates the direction of PRB pricing," O’Brien said. "[Pricing] was pretty resilient coming out of the spring, even though we did have rail issues, but I think all the incremental weakness is driven by or attributed to very unfavorable weather." In the CAPP market, it’s the same story, he said. "It’s come off, driven almost exclusively by weather," he said. "The [barge market] probably has held up a little better than the rail contract." In Wednesday’s session, the physically-settled CAPP barge contract (12,000 Btu/lb) for […]

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Not in my backyard: US sending dirty coal abroad

Coal from Appalachia rumbles into this port city, 150 railroad cars at a time, bound for the belly of the massive cargo ship Prime Lily. The ship soon sets sail for South America, its 80,000 tons of coal destined for power plants and factories, an export of American energy – and pollution. In the U.S., this coal and the carbon dioxide it will eventually release into the atmosphere are some of the unwanted leftovers of an America going greener. With the country moving to cleaner natural gas, the Obama administration wants to reduce power plant pollution to make good on its promise to the world to cut emissions. Yet the estimated 228,800 tons of carbon dioxide contained in the coal aboard the Prime Lily equals the annual emissions of a small American power plant. It’s leaving this nation’s shores, but not the planet. "This […]

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China’s Plan to Limit Coal Use Could Spur Consumption for Years

Under pressure to reduce smog and greenhouse gas emissions, the Chinese government is considering a mandatory cap on coal use, the main source of carbon pollution from fossil fuels. But it would be an adjustable ceiling that would allow coal consumption to grow for years, and policy makers are at odds on how long the nation’s emissions will rise. Senior officials are debating these issues as they formulate a new five-year development plan, to be finalized by the end of next year. China emits more carbon dioxide than any other country, so what President Xi Jinping and his colleagues decide will have far-reaching consequences for efforts to contain climate change. China’s leaders have not detailed their views on coal or carbon emission limits. But there is robust support among senior policy advisers for a firm national cap on coal starting in 2016, Wang Yi , a […]

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Hungry U.S. Power Plant Turns to Russia for Coal Shipment

When New Hampshire ’s largest utility needed to rebuild coal supplies after the past frigid winter, it turned to Russia rather than Appalachia in the U.S. Northeast or Wyoming ’s Powder River Basin. The Doric Victory, a bulk carrier the length of two football fields, transported the fuel almost 4,000 miles (6,436 kilometers) from Riga , Latvia , last month to Public Service of New Hampshire’s Schiller power plant in Portsmouth, a 150-megawatt facility that’s produced electricity since 1952. Utilities in the U.S. are scrambling for coal, on pace to increase imports 26 percent this year, as railroad bottlenecks slow deliveries and electricity demand climbs with an improving economy. Russia, the world’s third-largest exporter of the fuel, will boost shipments 3.9 percent to 106 million metric tons this year, IHS Energy forecasts, part of President Vladimir Putin ’s plan to expand Russia’s role in the global coal market. “Everyone’s […]

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EIA cuts 2014 US coal demand, production forecasts; boosts price prediction

The US Energy Information Administration revised most of its 2014 projections for the US coal sector lower Tuesday, basing its decisions on weak electricity demand at home and oversupply in global seaborne markets. In its July Short-Term Energy Outlook, the agency said it expects US coal consumption to be 951 million st in 2014, compared with a June projection of 961 million st. The July figure is still up 2.8% compared with 2013 consumption of 925 million st. In 2015, the EIA projects US coal consumption will dip to 924.4 million st due to retirements of coal-fired power plants, slow electricity sales growth and lower natural gas prices. Article continues below… Coal Outlook Platts Coal Trader provides:The latest prices for key benchmark coals Daily pricing for tons and allowances for SO2 and NOx emissions The exclusive Platts OTC Broker Index, a market assessment compiled […]

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War on Coal being waged by Geology and Markets, Not EPA

With the release of the Environmental Protection Agency’s  proposed rules limiting carbon pollution  from the nation’s electricity sector, you’ve no doubt been hearing a lot of industry outrage about “Obama’s War on Coal.” Don’t believe it. Despite the passionate rhetoric from both sides of the climate divide, the proposed rules are very moderate — almost remedial.  The rules  grade the states on a curve , giving each a tailored emissions target meant to be attainable without undue hardship.  For states that have already taken action to curb greenhouse gasses, and have more reductions in the works, they will be easy to meet.   California ,  Oregon, Washington , and  Colorado , are all several steps ahead of the proposed federal requirements — former Colorado Governor Bill Ritter  told Colorado Public Radio  that he expects the state to meet the proposed federal emissions target for 2030 in 2020, a decade ahead […]

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China’s Clean-Fuel Focus Tests U.S. Coal-Export Lifeline

The mud-colored air that blankets Chinese cities these days is bad for the people who live there. It may prove unhealthy for U.S. coal producers, too. Intense opposition on the U.S. West Coast, over climate change , rail congestion and damage to Native American fisheries, already is blocking new export terminals designed to ship coal across the Pacific Ocean . Now, China — which consumes almost as much coal as the rest of the world combined — is accelerating a planned switch to cleaner fuels, including a possible cap on carbon emissions and limits on new coal-fired plants. Even if such changes don’t occur as fast as environmentalists might hope, Chinese President Xi Jinping plans to scrap the economic strategy that spawned coal-eating steel plants in every province. Mounting anti-coal sentiment in China and the U.S. imperils the ambitions of companies like Peabody Energy Corp. (BTU) and Arch Coal […]

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US coal stockpiles stand at 126 million st, down 32%: Bentek

Washington (Platts)–6Jun2014/440 pm EDT/2040 GMT US coal stockpiles fell to 126 million st for the week ending Friday, down 32% from the five-year average, Bentek Energy said. Bentek, a unit of Platts, said lower coal production and higher coal consumption during the week meant US coal stockpiles have dipped for the second week in a row. At this time last year, US coal stockpiles totaled 176 million st. The decline comes as utilities are also face depleted natural gas inventories, though storage is building. Working gas in storage totaled roughly 1.5 Tcf for the week ending June 6, but inventories are still 37% below the five-year average. Bentek estimates US coal production declined 3% for the week ending Friday to 18.4 million st, while coal consumption increased 6% to 18.3 million st. Coal consumption increased all regions, with the largest increases in ERCOT, PJM and the Southeast. –Andrew Moore, […]

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Water for coal

In January, a chemical used to clean coal spilled into the Elk River, which runs through the middle of West Virginia, contaminating the state’s primary water supply. Suddenly, 300,000 people were left without water for drinking, washing, or bathing. Connect with Fault Lines While the crisis made national headlines, the spill was not an isolated incident. Coal mining has been poisoning rural West Virginia residents’ water for years with little attention paid to various accidents and their consequences. After all, this is one of the poorest regions of the country, and it is economically dependent on a single extractive industry. The people of West Virginia are both wedded to coal and at its mercy, and the industry’s deep pockets regularly influence politicians to fight against environmental regulation that could benefit the health of their constituents. Fault Lines heads to coal country to see how West Virginia’s main industry impacts […]

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China’s Thirst for Coal is Drying Up

As the ‘ airpocalypse ‘ news out of China continues to grow, what we predicted more than a year ago is now increasingly obvious – China’s seemingly endless coal demand is a , and the Chinese coal boom is over . What we often hear about a never-ending demand for coal in China has turned out to be just a desperate attempt by a flailing industry seeking to convince investors and politicians that they have a future in a cleaner, greener 21st century. But as frustration with deadly coal pollution grows along with China’s booming clean energy industry, this looks increasingly doubtful. Since news of the airpocalypse first broke, the Chinese public has become increasingly adamant that dangerous air pollution from coal-burning power plants be curbed. In response, China’s State Council announced a detailed plan — The Airborne Pollution Prevention and Control Action Plan — that aimed to cut […]

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China produces and consumes almost as much coal as the rest of the world combined

. Chinese production and consumption of coal increased for the 13th consecutive year in 2012. China is by far the world’s largest producer and consumer of coal, accounting for 46% of global coal production and 49% of global coal consumption—almost as much as the rest of the world combined. As a manufacturing country that has large electric power requirements, China’s coal consumption fuels its economic growth. China’s gross domestic product (GDP) grew 7.7% in 2012, following an average GDP growth rate of 10% per year from 2000 to 2011. The top 10 coal-producing countries supplied 90% of the world’s coal in 2012. China produced nearly four times as much coal as the second largest producer, […]

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Coal Missing Boom as Climate Foes Clean Asia’s Backyard

Bowie Resource Partners LLC wanted to export coal from the port of Oakland, California , promising thousands of construction jobs and a $3 million-a-year payroll in a city whose unemployment rate was almost double the national average. Oakland’s response: No, thanks. “We weren’t going to sell our souls here,” Jack Fleck, a retired engineer and Oakland resident who spoke out against Bowie’s plan, said by phone on May 12. “Whatever the economic benefit would’ve been, it wasn’t worth destroying the planet over.” Oakland’s rejection marks a sea change in the fight against coal exports from the U.S. and underscores an emerging challenge for energy projects. The Sierra Club and other environmental groups have scuttled three of six coal terminals proposed in the U.S. Pacific Northwest that would have shipped as much as 146 million metric tons annually to booming markets in Asia . Where coal projects were once fought […]

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Chemical spill fails to loosen coal’s grip on West Virginia politics

It has been more than five months since a leak at a chemical storage facility left more than 300,000 West Virginians without drinking water. Today voters across West Virginia are heading to the polls for the first time since the spill to participate in the state’s primary elections. In the immediate aftermath of the leak, some West Virginians, including Benjamin Seebaugh, believed its devastating impact would serve as a wake-up call for the state, which is known for its lax regulatory environment. Now they’re not so sure. “Many of us truly believed this would be the impetus for tangible change in West Virginia relating to environmental relations and the energy industry,” says Seebaugh, 22. A lifelong West Virginia resident and a Democratic Party activist, he felt that the proximity of the incident to the state’s seat of power was also significant. “Even though West Virginia is […]

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Dirty U.S. Coal Finds a Home in Europe

Even as it faces increased regulatory scrutiny at home, America’s dirty and unwanted coal is being embraced in one of the world’s cleanest energy markets: the European Union. At the biggest power plant in the U.K., operated by Drax Group PLC, a small black mountain of a million tons of coal sits at the base of a dozen 374-foot cooling towers. Much of it is high-sulfur coal from under the plains of Illinois and Indiana—exactly the kind of high-emission, power-plant fuel receiving closer scrutiny from U.S. regulators and courts. Last week, the Supreme Court ruled in favor of enforcing regulations that require power plants in 28 states to cut coal emissions that blow across state lines. Many U.S. power plants were already reducing emissions in anticipation of tougher Environmental Protection Agency rules that take effect in 2015. Now, the Supreme Court ruling could affect 1,000 power plants in […]

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China’s coal solution has carbon downside across globe

Global carbon-dioxide emissions are climbing at rates that pose severe risks to the planet, and reversing that trend is heavily dependent on China making cuts in its emissions. This coal-to-gas plant built by Datang International is the first of its kind in Inner Mongolia. It creates methane that can be piped to Beijing, where it can be used as a cleaner burning fuel to reduce air pollution. But the plant itself can send out quite a stench. LOSING GROUND The struggle to reduce CO2 During the next three days, reporter Hal Bernton will bring you stories from the front lines of China’s changing energy industry. This is kickoff of an occasional series on the challenges of reducing carbon emissions. Read more → The new coal plant here is an industrial fortress of boilers, tanks and towers that stretches across a lonely plateau in Inner Mongolia. All day long and […]

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Implications of accelerated power plant retirements

In 2012, coal-fired and nuclear power plants together provided 56% of the electricity generated in the United States. The role of these technologies in the U.S. generation mix has been changing since 2009, as both low natural gas prices and slower growth of electricity demand have altered their competitiveness relative to other fuels. Many coal-fired plants also must comply with requirements of the Mercury and Air Toxics Standards (MATS) and other environmental regulations. Some of the challenges faced by coal-fired and nuclear generators, and the implications for electricity markets if the plants are retired in significant numbers, are analyzed in this discussion. Implications of lower natural gas prices on industrial production Release Date: 4/23/14 This analysis focuses on variation in industrial output in the Low and High Oil Price cases and Low and High Oil and Gas Resource cases compared to the Annual Energy Outlook 2014 (AEO2014) Reference case. […]

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China’s inability to achieve nuclear targets will be a boon for coal: Woodmac

China will be unable to achieve its target of increasing nuclear power generating capacity to 200 GW by 2030, translating into opportunities for coal producers to capture additional demand growth, Wood Mackenzie said Monday. Coal will remain the dominant fuel, at 64% of China’s power generation mix in 2030. China’s target is to increase nuclear generating capacity to 200 GW in 2030 from the current 14.6 GW, it said. However, Woodmac said China will only be able to increase its nuclear generating capacity to 175 GW in 2030, as some of its planned and proposed projects will be delayed or canceled. "The missed targets will translate into opportunities for coal producers to capture additional demand growth," Woodmac said. It added that by 2030, China’s nuclear capacity will account for 30% of the world’s total nuclear fleet, from 4.5% last year. And while China’s natural […]

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China's inability to achieve nuclear targets will be a boon for coal: Woodmac

China will be unable to achieve its target of increasing nuclear power generating capacity to 200 GW by 2030, translating into opportunities for coal producers to capture additional demand growth, Wood Mackenzie said Monday. Coal will remain the dominant fuel, at 64% of China’s power generation mix in 2030. China’s target is to increase nuclear generating capacity to 200 GW in 2030 from the current 14.6 GW, it said. However, Woodmac said China will only be able to increase its nuclear generating capacity to 175 GW in 2030, as some of its planned and proposed projects will be delayed or canceled. "The missed targets will translate into opportunities for coal producers to capture additional demand growth," Woodmac said. It added that by 2030, China’s nuclear capacity will account for 30% of the world’s total nuclear fleet, from 4.5% last year. And while China’s natural […]

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Profit of China’s largest coal producer falls 9.9%

China Shenhua Energy, the country’s largest coal producer, posted a decline in first-quarter net profit compared with a year earlier, citing falling coal prices. Net profit went down 9.9 percent to 10.4 billion yuan (about 1.66 billion U.S. dollars) in the first three months, said a report on the website of the Shenzhen Stock Exchange on Saturday. During the January-March period, Shenhua Energy’s revenue dipped 0.1 percent on an annual basis to 60.9 billion yuan, it added. The Beijing-based company attributed the poor performance mainly to rising production costs and falling coal prices. While the cost of producing every tonne of coal increased 4.6 percent on an annual basis to 127.8 yuan, the Bohai-Rim Steam-Coal Price Index, a key indicator of coal prices in China, plummeted from 631 yuan per tonne at the end of last year to 530 yuan at the end of […]

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Profit of China's largest coal producer falls 9.9%

China Shenhua Energy, the country’s largest coal producer, posted a decline in first-quarter net profit compared with a year earlier, citing falling coal prices. Net profit went down 9.9 percent to 10.4 billion yuan (about 1.66 billion U.S. dollars) in the first three months, said a report on the website of the Shenzhen Stock Exchange on Saturday. During the January-March period, Shenhua Energy’s revenue dipped 0.1 percent on an annual basis to 60.9 billion yuan, it added. The Beijing-based company attributed the poor performance mainly to rising production costs and falling coal prices. While the cost of producing every tonne of coal increased 4.6 percent on an annual basis to 127.8 yuan, the Bohai-Rim Steam-Coal Price Index, a key indicator of coal prices in China, plummeted from 631 yuan per tonne at the end of last year to 530 yuan at the end of […]

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Light Goes Out on U.K. Coal Industry

The U.K. coal industry is at the point of fizzling out following the planned closure of two of its three remaining deep mines in northern England. Among the beneficiaries: Russian exporters of the commodity. U.K. production of coal—still a major source of power in the country—has been in long-term decline since Margaret Thatcher ‘s government defeated a miners strike in the 1980s. When Mrs. Thatcher came to power in 1979, Britain produced 122 million tons of coal from 219 underground and 58 open-cast mines. Last year production was one-tenth that amount, the lowest to date. A further drop when the closures are completed in 18 months will underline how reliant the U.K. has become on foreign suppliers. Since 2002, annual imports of coal used in U.K. power generation have doubled. The country now imports nearly four times as much coal as it produces domestically. Problems for the U.K. coal […]

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Is This The End Of China’s Coal Boom?

“ The End Of China’s Coal Boom ,” is a new, must-read chart-filled report from Greenpeace. It documents the response of China to the almost unimaginable  life-shortening  air pollution caused by its rapid growth in coal use. One of its charts highlights the stunning statistic that over half of the growth in  global  carbon pollution in the past decade has come just from China’s increase in coal! But that kind of growth of coal has more than just climate impacts. It is “draining the country’s arid west of precious water resources,” as Greenpeace itself  noted . And then there is the air pollution. Climate Progress has  pointed out  “when eight-year-olds  start getting  lung cancer that can be attributed to air pollution, you’ve got a problem. When  smog forces  schools, roads, and airports to shut down because visibility is less than 50 yards, you’ve got a problem. When a  study […]

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Appeals Court Upholds EPA Rule on Power-Plant Emissions

A federal appeals court on Tuesday upheld the nation’s first-ever national standards requiring power plants to cut emissions of mercury and other hazardous air pollution. The federal rules, scheduled to take effect in April 2015, require the nation’s 600 coal and oil-fired power plants to comply with emissions limits set by the Environmental Protection Agency. The standards are a notable environmental accomplishment for President Barack Obama and a blow to the coal industry, which is the biggest source of mercury emissions in the U.S., according to EPA. A divided three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit in a 61-page ruling rejected several legal attacks raised by challengers. These challengers include more than 20 states with utilities that depend heavily on coal for energy production, and several industry groups and companies, including Peabody Energy Corp. , Corp. , and the National Mining Association. […]

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Peak Coal

Comments about coal are usually not complimentary. Despite our dependence on it as a source of heat for electric power generation, environmentalists wish it would go away. On the other hand, advocates like to claim we have more than 110 years of coal left – “at present rates of consumption”. Both sides are overlooking crucial points. Let’s see if we can clarify the future use of coal as a fossil fuel resource. To begin with, it is important to understand not all coal is of equal quality. When I was in grade school, we lived in a house that had a coal furnace. For those who could get it, the coal of choice of home heating applications was anthracite coal because it was the cleanest burning form of coal and provided – ton for ton – the most heat. Unfortunately, we humans have used up most of the readily […]

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Seeking Consensus on the Internalized Costs of Coal

What is meant by “internalized costs”? Internalized costs are the costs which can be accurately accounted for in our current systems. In energy production, these costs typically consist of capital costs, financing costs, operation and maintenance costs, and exploration costs. Some energy options incur these costs in various stages such as extraction, transportation and refinement. Profits and taxes are excluded wherever possible in order to isolate the pure cost of production. Internalized costs related to coal can become very low. That is one of the main reasons why coal has thus far proven itself to be the standout energy source of the 21 st century ( figure below ) despite rising prices, decades of talk about climate change and huge hype about alternatives. We will seek to better quantify these low internalized costs in this article. Internalized costs of coal The International Energy Agency has complied the cost curve […]

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Coal’s Best Hope Rising With Costliest U.S. Power Plant

The facility will be the only U.S. commercial power plant that will capture its own carbon emissions. Close Close Open Photographer: Gary Tramontina/Bloomberg Cranes stand at the construction site for Southern Co.’s Kemper County power plant near Meridian, Mississippi, on Feb. 25, 2014. The facility will be the only U.S. commercial power plant that will capture its own carbon emissions. Rising from the scrub pines of central Mississippi is a $5.2 billion construction project that may determine the future of coal in the age of global warming. It’s here in Kemper County, 90 miles southwest of Tuscaloosa, Alabama, that utility Southern Co. is building the first large-scale power plant in the U.S. designed to transform coal into gas, capture the carbon dioxide and pump it underground. […]

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James River Coal Files for Chapter 11 Bankruptcy

Appalachian coal miner James River Coal Co. filed for Chapter 11 bankruptcy protection Monday as it continues its search for a buyer or investor. The Wall Street Journal in February reported that the Richmond, Va., company , an effort the company will continue in Chapter 11. "We took this action to restructure under Chapter 11 because it will allow us to adjust the balance sheet and improve our liquidity in a controlled and definitive manner," James River Chairman and Chief Executive Peter T. Socha said Monday in a statement. "We will also continue to explore and evaluate potential strategic alternatives for the company, such as a capital investment through a plan of reorganization or a sale of one or more portions of the company." The company, which sells coal to electric utilities and industrial customers, said it has secured a $110 million bankruptcy loan to help it fund its […]

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Power Stations Switch to Gas, But Coal Stays on the Menu

Power utilities American Electric Power Co. and Southern Co. say the U.S. needs to keep coal in the mix for electricity generation because it’s cheap and plentiful. “Coal has to be part of the puzzle,” Nick Akins, chairman and chief executive of power giant AEP said Thursday at The Wall Street Journal’s ECOnomics conference in Santa Barbara, Calif. The dirtiest of the fossil fuels, coal has lost major market-share to natural gas in recent years as power generators switching to burning gas to create electricity. Columbus, Ohio-based AEP plans to shut down up to 6,000 megawatts of coal-fired power plants by 2016 – enough to light between 3 million and 6 million homes – mostly so it can comply with tighter federal pollution limits. By 2020, the company will generate about 46% of its electricity from coal, down from 60% today. But Mr. Akins argued the U.S. has so […]

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BHP Billiton Signals Confidence in Its Coal Business

Coal being excavated at a U.S. mine earlier this month. Coal mining is one of the activities BHP Billiton still considers a core business. SYDNEY—The head of BHP Billiton Ltd. ‘s coal business signaled confidence in the outlook for the strained global coal industry, forecasting increases in world demand for decades to come. Dean Dalla Valle said he expects most demand growth to come from outside China, which has been the primary driver of global commodity prices in recent years. China currently accounts for about half of the world’s coal consumption. "Over the next couple of decades we expect global growth in demand for both energy coal and metallurgical coal," he said in a speech in Brisbane Wednesday. Although "the likes of India, a country not overly endowed with metallurgical coal, [is] anticipated to be the most significant source of new demand" for coal used in steelmaking, he said. […]

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UK’s biggest coal miner on verge of collapse

UK Coal is appealing for government support to stave off a collapse that would cost 2,000 jobs. The largest coal miner in Britain was rescued last year by the Pension Protection Fund , which preserves the pensions of employees whose companies go bust. But it is on the brink of insolvency again. Hargreaves Services , the only other domestic large scale miner , is also in talks to invest in the business, according to people familiar with the situation. Its proposal to buy UK Coal for £20m was rejected by administrators last year in favour of the PPF rescue. Hargreaves could not be reached for comment. In case that bid fails, UK Coal is asking for £10m of government funding to close two of the past three deep pits in Britain and sell off its surface mines. The business, which is burning cash reserves because of the low […]

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Lawmakers question how retiring US coal-fired power plants could affect winter grid challenges

US House of Representatives Republicans are concerned about how the retirement of a significant number of coal-fired power plants could affect the transmission grid in coming winters and are seeking answers from four grid operators on how those retirements will be handled, letters show. Citing the spikes in electricity prices, forced outages and other events of this past winter, top Republicans on the House Energy and Commerce Committee, including its chairman, Fred Upton, are concerned that "such outages and price increases could be further exacerbated in the future" as coal plants used to respond to acute needs this winter shut, they said. The lawmakers sent nearly identical letters on Wednesday to PJM Interconnection, New York Independent System Operator, Midcontinent Independent System Operator and ISO New England seeking answers on how their grids would have fared had the plants slated for retirement been unavailable. Article […]

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Japan's Answer to Fukushima: Coal Power

Japan is turning into a rare bright spot in the world coal market, stepping up coal-fired power generation to replace nuclear plants that went offline after the 2011 Fukushima accident. Plans by Japanese companies to spend billions of dollars on new coal-fired plants offer a striking contrast with the U.S., which has effectively blocked new coal plants using existing technology over concerns about global warming. And they show how deeply Japan’s energy picture has changed since the March 2011 earthquake and tsunami caused meltdowns at Fukushima Daiichi nuclear reactors. On Thursday, Kyushu Electric Power Co. said it would restart a long-frozen project to build a one-gigawatt coal-fired unit in southern Japan. Other utilities including Co. have announced similar plans for more coal-fired power. If the plans all come to fruition, Japan’s coal-fired power capacity would increase to around 47 gigawatts over the next decade or so, up 21% from […]

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Japan’s Answer to Fukushima: Coal Power

Japan is turning into a rare bright spot in the world coal market, stepping up coal-fired power generation to replace nuclear plants that went offline after the 2011 Fukushima accident. Plans by Japanese companies to spend billions of dollars on new coal-fired plants offer a striking contrast with the U.S., which has effectively blocked new coal plants using existing technology over concerns about global warming. And they show how deeply Japan’s energy picture has changed since the March 2011 earthquake and tsunami caused meltdowns at Fukushima Daiichi nuclear reactors. On Thursday, Kyushu Electric Power Co. said it would restart a long-frozen project to build a one-gigawatt coal-fired unit in southern Japan. Other utilities including Co. have announced similar plans for more coal-fired power. If the plans all come to fruition, Japan’s coal-fired power capacity would increase to around 47 gigawatts over the next decade or so, up 21% from […]

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Coal Sliding as Australian Flood Boost Lost in Drought

The drought across most of Australia ’s Queensland state means coal producers are exporting record volumes into an oversupplied market, depriving them of the usual price gains caused by weather disruptions. Shipments from Queensland, the biggest exporter of coal used in steelmaking, will rise 14 percent to 205 million metric tons in the 12 months ending June 30, the government says. The heavy rains that crimped output and boosted prices in three of the past four years by flooding pits such as Cockatoo Coal Ltd.’s Baralaba mine haven’t come this year. “Waters that we collected during that flood we’re now utilizing” to reduce dust and in the construction of a wall to protect against a 1-in-a-1,000 years flood, said Andrew Lawson, Cockatoo’s managing director. “Water is a risk and an opportunity,” said Lawson, who joined the company a year after flooding in 2010 halted output. Deluges in Queensland in […]

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North Carolina regulators cite Duke Energy for dumping coal ash

Environmental regulators in North Carolina have cited the country’s largest energy company for dumping millions of gallons of wastewater from coal ash ponds into a public waterway. The company could face $2.75 million in fines if the allegations are confirmed. The citations issued Thursday concern two coal ash ponds near the Cape Fear River,  where regulators allege Duke Energy  pumped the wastewater into a public canal, violating its environmental permit. Coal ash is a byproduct of burning coal and contains high levels of toxic arsenic. In a statement to Al Jazeera on Wednesday, the company said the water pumped was within the limits of its permit and necessary to perform routine maintenance. “Our permit authorizes this type of maintenance specifically under the condition that we meet permit limits,” Duke Energy told Al Jazeera. “The water was being pumped to the existing, permitted outfalls.” However, Tom Reeder, director of North […]

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American Coal Feeding European Needs

Two stories from either side of the Atlantic Ocean ably demonstrate the interrelations at play in the energy sector. From Baltimore, The Wall Street Journal’s John Miller reports from a sprawling coal terminal that is at the front line of a booming business: selling American coal to the world. As the article explains, 2014 is on course to be the third straight year of record exports. Europe is the biggest target market, where demand is strong and, thanks to Russia’s annexation of Crimea, likely to grow further. A caveat comes from Brussels. The European Union’s climate chief, Connie Hedegaard, tells the Journal’s Vanessa Mock that although it is time to […]

Posted On : Published By : Tom Whipple
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Japan’s Coal Imports Rise, Raising Carbon Emissions

smaller Larger facebook twitter google plus linked in Email Print facebook twitter google plus linked in Email Print smaller Larger facebook twitter google plus linked in Email Print Japan is on a path to increase its carbon-dioxide emissions because it is shifting to coal imports from more expensive liquefied natural gas. Recent trade statistics suggest Japan’s LNG demand has peaked even though the country continues to go without any nuclear power plants in operation. Meanwhile, coal imports are moving higher. In February, Japan’s LNG imports fell 0.2% compared to the same month a year earlier, following a 0.6% slip in January, customs data released Wednesday showed. Imports of thermal coal used to generate electricity rose 4.8% in February year-on-year, following a 17% rise in January, according to the data. Japan’s CO2 emissions climbed to their second-highest level on record in the year ended in March 2013 because most nuclear […]

Posted On : Published By : Tom Whipple
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ASIA THERMAL COAL: Chinese buyers draw back as domestic market buckles

"Shenhua has achieved what it wanted by cutting prices. It may not want to cut its prices again this month," said a Shanghai-based trader. Smaller and medium-sized coal producers in China were among the most aggressive sellers in Friday’s market, as some seek to unload their remaining stock with a view to existing the business, said sources in China. In the seaborne market for China, April-arrival high-ash Australian cargoes were heard to trade this week at around $75.50/mt CFR in a thin market as Chinese buyers drove hard bargains. A Capesize cargo of Australian 5,500 kcal/kg NAR coal was being offered Friday at slightly above $76/mt CFR South China for April arrival, while bids were at $75.50/mt CFR, as heard through broker Starfuels. "The arbitrage into China for imported thermal coal is closed," said one market participant in Singapore. April-May delivery cargoes of 5,500 kcal/kg NAR Australian thermal coal […]

Posted On : Published By : Tom Whipple
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Polar Vortex Emboldens Industry to Push Old Coal Plants

The polar vortex may give new life to aging coal and nuclear power plants in the U.S. Masses of arctic air rolling down from the North Pole have driven electricity prices to more than 10 times last year’s average in many parts of the country and have threatened some cities with winter blackouts. They’ve also emboldened energy companies to call for extending the lives of older and dirtier coal plants, as well as aging nuclear reactors. Despite a concerted campaign by environmentalists and public health experts to stanch its use, coal, the most plentiful and cheapest fuel in the world, is proving globally resilient. In the U.S., rising natural gas prices are prodding utilities to switch back to coal at levels not seen since 2011. Now, Edison Electric Institute, the Washington-based trade group of U.S. investor-owned utilities, is turning to the latest series of cold snaps to bolster their […]

Posted On : Published By : Tom Whipple
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US rail congestion forcing utilities to idle units due to dwindling coal stocks

Washington (Platts)–6Mar2014/404 pm EST/2104 GMT Increased congestion across the US rail network due to several weeks of extreme winter cold has forced some utilities to pull coal-fired units out of service in order to preserve dwindling stockpiles, according to testimony Thursday at the Rail Energy Transportation Advisory Committee meeting at the US Surface Transportation Board. Jeff Wallace, vice president of fuel services for Atlanta-based Southern Company, told STB commissioners and energy and railroad executives the cold weather has increased the company’s coal burn "significantly" and that a number of utilities are "very concerned about our ability to get [coal] supplies." Wallace estimated coal burn this winter will be more than 15 million st above industry projections due to the cold weather. Article continues below… Request a free trial of: Coal Trader Platts Coal Trader provides:The latest prices for key benchmark coals Daily pricing for tons and allowances for SO2 […]

Posted On : Published By : Tom Whipple
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Tech Talk – Coal prospects

Last week was the annual Society of Mining Engineers annual meeting, this year in Salt Lake City, with the title “ Leadership in Uncertain Times .” To illustrate the point it had some 6,000 members or more in attendance, as I hear and was quite successful from that point of view. However, through the grapevine I also heard that some of the mining companies are less optimistic of the future, with job offers made for this summer being withdrawn in several cases. There is a considerable question as to the future of coal, as the title reflects, and this has as much to do with concerns over the construction or not of additional coal-fired powered stations around the world and the changing market as older plants are withdrawn from service. Some of the reason for uncertainty can be seen in the predictions from […]

Posted On : Published By : Tom Whipple
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Coal crunch gives impetus to India’s solar switch

For six years in a row, India’s monopoly coal producer has missed its production targets, leading to chronic electricity shortages and sending power producers scrambling for pricier imports. But what looks like a looming crisis could turn out to be an almost accidental energy overhaul. Like many developing nations, India has relied for decades on cheap coal to provide electricity for burgeoning industry and fast-expanding cities, putting aside worries about pollution and global warming. But from three years ago when solar capacity was almost zero, the country has added 2.2 gigawatts of solar to its electricity grid, enough to power 20 million Indian homes. It plans another 2 GW this year, toward a total 15 GW addition by 2017. Individual states plan even more. India has also added about 26 GW in coal-fired capacity since 2011, but already plants are sitting idle for […]

Posted On : Published By : Tom Whipple
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Coal crunch gives impetus to India's solar switch

For six years in a row, India’s monopoly coal producer has missed its production targets, leading to chronic electricity shortages and sending power producers scrambling for pricier imports. But what looks like a looming crisis could turn out to be an almost accidental energy overhaul. Like many developing nations, India has relied for decades on cheap coal to provide electricity for burgeoning industry and fast-expanding cities, putting aside worries about pollution and global warming. But from three years ago when solar capacity was almost zero, the country has added 2.2 gigawatts of solar to its electricity grid, enough to power 20 million Indian homes. It plans another 2 GW this year, toward a total 15 GW addition by 2017. Individual states plan even more. India has also added about 26 GW in coal-fired capacity since 2011, but already plants are sitting idle for […]

Posted On : Published By : Tom Whipple
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Wildlife group says China can still prosper with reduced coal use

China can still prosper economically while removing coal from its power mix, a report from the World Wildlife Fund said Wednesday. "By fully embracing energy conservation, efficiency and renewables, China has the potential to demonstrate to the world that economic growth is possible while sharply reducing the emissions that drive unhealthy air pollution and climate change," Lunyan Lu, WWF’s China Climate and Energy Program director, said in a release. The report, prepared by the Energy Transition Research Institute in Annapolis, Md., used computer modeling to simulate four possible scenarios in China: a baseline, high efficiency, high renewables and low-carbon mix scenarios. "This research shows that with strong political will, China can prosper while eliminating coal from its power mix within the next 30 years," Lu said. The U.S. Energy Information Administration, in its most recent analysis of China released this month, said coal accounted […]

Posted On : Published By : Tom Whipple
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Rising Coal Use Clouds Europe’s Future

The European Union sees itself leading the world in curbing carbon-dioxide emissions and doing more than any other region to mitigate climate change. But it is also increasing the share of electricity being generated by the most carbon-intensive energy source of all: coal. Coal-fired electrical-generation plants are being started up in Europe—and comparatively clean gas-fired generating capacity is being shut down. That is hardly what the climate doctor ordered—and it is part of what many experts see as an energy-policy mess that is weighing on the Continent’s industrial base. So who is to blame? We could start with Americans. They have turned the energy world on its head by exploiting large amounts of shale gas—natural gas tightly embedded in rocks deep underground. As a result, natural-gas prices in the U.S. have fallen, displacing coal as the country’s least-expensive energy source. Losing their home market, U.S. coal producers have sought […]

Posted On : Published By : Tom Whipple
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Rising Coal Use Clouds Europe's Future

The European Union sees itself leading the world in curbing carbon-dioxide emissions and doing more than any other region to mitigate climate change. But it is also increasing the share of electricity being generated by the most carbon-intensive energy source of all: coal. Coal-fired electrical-generation plants are being started up in Europe—and comparatively clean gas-fired generating capacity is being shut down. That is hardly what the climate doctor ordered—and it is part of what many experts see as an energy-policy mess that is weighing on the Continent’s industrial base. So who is to blame? We could start with Americans. They have turned the energy world on its head by exploiting large amounts of shale gas—natural gas tightly embedded in rocks deep underground. As a result, natural-gas prices in the U.S. have fallen, displacing coal as the country’s least-expensive energy source. Losing their home market, U.S. coal producers have sought […]

Posted On : Published By : Tom Whipple
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US coal railcar loads up 6.4% on year in week ended Saturday: AAR

Coal car loads originated by US railroads totaled 111,269 in the week that ended Saturday, up 6.4% from the corresponding week of 2013, the Association of American Railroads said Thursday in its weekly traffic report. In the year-to-date period through Saturday, total US-originated coal carloads totaled 430,476, essentially unchanged from the same period of last year, AAR said. In the week ended Saturday, Canadian railroads, including the US operations of Canadian National and Canadian Pacific, originated 8,127 coal carloads, down 8.9% from the year-ago level, AAR said. Article continues below… Request a free trial of: Coal Trader Coal Outlook Platts Coal Trader provides:The latest prices for key benchmark coals Daily pricing for tons and allowances for SO2 and NOx emissions The exclusive Platts OTC Broker Index, a market assessment compiled from three of the largest and most respected coal brokers What happened in yesterday’s […]

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China’s first direct coal liquefaction line produces 866,000 tonnes

China’s first direct coal-to-oil project, operated by the country’s leading coal producer, Shenhua Group, produced 866,000 tonnes of oil products last year. The direct coal liquefaction line is located in Ejin Horo Banner, Ordos City in northern Inner Mongolia Autonomous Region. It produces 3,000 tonnes of oil products with consumption of nearly 10,000 tonnes of coal per day, said Shenhua Coal Liquefaction and Chemical Co., Ltd. With an investment of 12.6 billion yuan (2.06 billion U.S. dollars), Shenhua Group began construction of the project in 2004, using self-developed technologies. The project began trial production at the end of 2009 with a designed annual capacity of 1.08 million tonnes of diesel, naphtha and liquefied petroleum gas. Proven coal reserves around Ordos are estimated at 160 billion tonnes, or 11.4 percent of the country’s total coal reserves. As part of its clean energy strategy, China has […]

Posted On : Published By : Tom Whipple