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Australia is making the most out of the COAL BOOM
16 Oct, 2021 06:49
Australia continues to back its coal industry as many Western nations have turned their back on the dirtiest fossil fuel, approving a third coal mine extension in a month and bolstering partnerships for long-term coal exports.
We already know the demand is there, with China requiring increasing coal to bridge its fuel demand gap, but Australia is one of the few remaining nations outside of Asia to continue to back coal as a major energy source.
Earlier this month, Australia approved its third coal mine extension within a month. In September, Environment Minister Sussan Ley approved extensions for the Whitehaven Coal and Wollonggong Coal mines. The latest extension approval was for the Glencore Mangoola thermal coal mine in New South Wales, allowing it to continue production for eight more years, mining approximately 52 million tons of coal.
But it’s not just other countries that are putting pressure on Australia to join them in curbing its coal production. In May, a ruling from Australia’s high court encouraged the country’s environment minister to reconsider coal mine expansions due to the obligation the ministry has to the Australian childrens’ future, as well as the general impact of coal production and use on climate change.
While environmental activists and international energy organizations are less than happy with Australia’s ongoing support for coal, many Australians back the decision to expand mines because of their contribution to the country’s employment. Around 400 workers are currently employed at Glencore, and the expansion will add 100 construction jobs.
Australia is the world’s biggest exporter of coal, with strong links to the Asian market. To date, Australia has made no pledge to reduce carbon emissions to net-zero by 2050, unlike many of its Western counterparts. Many countries across Europe and North America have vowed to rapidly reduce carbon emissions, an aim that is expected to be reinforced in the upcoming COP26 climate summit in Glasgow this month, which Australia’s Prime Minister Scott Morrison will attend.
However, shortly after the announcement of the third expansion project, Australia’s resources minister proposed the establishment of a state-run $180-billion lending option for the coal industry, with the stipulation that borrowers support a net-zero carbon emissions target. This strategy comes as banks and insurers become less willing to lend to the dying coal sector.
Australia’s dependence on coal is not surprising considering its close proximity to the Asian market, where coal demand remains high. Several Asian countries, most notably China and India with their ever-expanding populations, continue to rely on coal, as well as oil and gas, to meet their national energy demand.
“While China unambiguously needs as much coal as it can get its hands on to avert a [fourth-quarter] slowdown due to the tyranny of rolling power shortages, geopolitical tensions with Australia have waylaid the most convenient source of high-calorific coal from Down Under,” Vishnu Varathan, head of economics and strategy for Asia and Oceania treasury department at Mizuho, stated of China’s reliance on coal imports.
However, in late 2020, China ended its coal imports from Australia following difficult trade relations, namely Australia’s support for an international inquiry into China’s management of the Covid-19 pandemic. Coal is Australia’s third-largest export to China, a country that accounts for 32.6% of all Australian exports, with Australia exporting more to China than it imports.
After reportedly telling utilities and steel mills to stop all Australian coal imports, China began to import its coal from regional exporters Indonesia, Mongolia, and Russia. India has apparently been buying discounted coal that was left stranded in Chinese customs following the falling out between China and Australia. In recent months, Indian cement makers and sponge iron plants have sought to boost supplies with this low-cost option.
The Chinese stockpile of Australian coal, and its willingness to sell the supply at a discount, suggests the dedication it had to cutting trade ties with Australia. However, the energy crisis experienced in recent months has finally proved too much for China to continue holding a grudge. Fuel shortages and high energy costs have led the Chinese government to resume Australian coal imports. This month, China released Australian coal from bonded warehouses in addition to receiving 450,000 tons of Australian coal cargoes at the beginning of the month.
During the time that China refused imports, Australia did not just simply wait for China to come running back, rather it fostered its relationship with India. Australia held its first joint working group meeting on coal and mines with India this September to encourage greater participation in Australia’s ongoing coal production. Australia identifies India as a key market for some of its lower-grade coal, with prices significantly undercutting those of the premium coal products imported by China.
With little commitment to net-zero aims, ongoing support for coal plant expansion projects despite a high court interjection, and ongoing trade links with high-demand countries across Asia, it seems unlikely that Australia will curb its coal production or make it more carbon-friendly any time soon, despite international pressure to do so.
Russia to boost coal supplies to India amid global power crunch
17 Oct, 2021 13:33
Russia’s Energy Ministry signed an agreement this week with India’s Steel Industry Ministry aimed at increasing Russian coking coal supply to India to 40 million tons per year.
The deal was inked at the Russian Energy Week Forum, held from October 13-15 in Moscow.
According to Russian Energy Minister Nikolay Shulginov, Russia currently supplies around eight million tons of all types of coal to the South Asian country.
The agreement is also meant to stimulate enterprises in Russia and India in the development of coal deposits, the development of coal logistics and infrastructure, the promotion of R&D in production, as well as education and training for the coal industry.
The world’s third-largest coal importer, India, is currently struggling with coal shortages. Coal accounts for around 70% of the nation’s electricity generation. Most of India’s coal-fired power plants have critically low levels of inventory amid growing electricity demand.
A widening gap between soaring international and domestic coal prices has also seen imports decline sharply in recent months.
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Moving to a green economy at the pace of some countries is absurdly reckless.
‘Naive is an understatement’: German safety official tells RT
that risk of electric vehicle fires is ‘completely unaddressed’
24 Oct, 2021 17:33
Firefighters try to extinguish a fire at a bus depot in Stuttgart, Germany, September 30, 2021 © AFP / Andreas Rosar
It's hard to see how this is improving air quality
A series of fires involving electric buses is calling into question Germany’s reliance on these zero-emissions vehicles. “The risk of these fires,” safety regulator Heinrich Duepmann told RT, “is completely unaddressed.”
Europe is experiencing a green transport boom. Sales have quadrupled since 2018, and one in every ten new vehicles sold on the continent is now fully electric, a share that rises to four in ten when hybrid vehicles are taken into account. In Germany, where the Greens are in talks about joining a coalition government, the number of electric buses doubled last year compared to 2019.
The switchover from diesel to electricity has not been entirely smooth. Three bus depots were gutted by fire this year alone, with the most recent in Stuttgart last month destroying 25 buses and sending a column of smoke towering over the city.
The fires prompted the cities of Munich and Stuttgart to suspend use of these battery-powered buses, and Heinrich Duepmann of Germany’s Electricity Consumer Protection Association told RT that he shares their concerns – not just about buses, but electric vehicles in general.
“The risk of these fires, including in other locations such as bicycle basements or large apartment blocks, is completely unaddressed,” he said. “Also, insurance companies are not yet tackling the issue.”
The lithium-ion batteries that power electric vehicles can catch fire if damaged, or in some cases during charging or spontaneously. Lithium burns ferociously on contact with air, and once ablaze, these fires can be extremely difficult to put out. While burning, lithium-ion batteries have been shown to emit toxic quantities of fluoride gas.
Aside from the fire risk, Deupmann is also concerned that as private electric vehicles become more popular, the country’s electricity infrastructure is “completely undeveloped” to facilitate widespread fast charging.
“People have been too naive about this,” he said, adding that “naive is an understatement.”
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