editor’s note

Bob Burton
CoalWire Editor

campaigns

UK coal shutdown accelerates

Two UK power stations will close 3500 megawatts (MW) of coal-fired capacity by mid-year. French energy giant Engie will close the 1000 MW Rugeley power station as falling power prices and increasing carbon costs make it “unviable.” SSE has announced it will close three of the four 500 MW units at its Fiddler’s Ferry plant by April 1 as “substantial losses” were likely to continue to 2020, even with a government subsidy for their role as reserve capacity. The future of the fourth Fiddler’s Ferry unit beyond the winter of 2016/17 is uncertain. (Engie, SSE)

Tweet: Almost half #UK #coal plant capacity to close in 2016 bit.ly/1K9grVf

top news

Norwegian divestment expands: Norges Bank Investment Management, which manages the US$87 billion Norwegian sovereign wealth fund, divested from 16 companies with a significant proportion of coal power generation assets and 11 companies with significant involvement in the mining of thermal coal in 2015. In March the Bank is expected to disclose the full list of companies that they will divest from as a result of last year’s Parliamentary decision to divest from coal. (Investments & Pensions Europe, Norges Bank Investment Management)

Supreme Court ruling delays Clean Power Plan: In a 5-4 vote a majority of the US Supreme Court has agreed to delay the implementation of the Obama Administration’s Clean Power Plan until a challenge against it before a federal appeals court is resolved. The federal appeals court case is scheduled to be heard on June 2 with a decision due later in the year. The effect of the ruling is to suspend states needing to submit compliance plans or requests for an extension by September. The Obama Administration believes the plan will ultimately survive legal challenges, while the Sierra Club said the practical impact would be marginal as the power industry is already shifting away from coal. (New York Times, Bloomberg)

Japan set to back more coal plants: Japan’s Minister for the Environment Tamayo Marukawa has reversed her previous opposition to the construction of new coal plants and agreed with a Ministry of Economy, Trade and Industry (METI) proposal to develop a greenhouse gas emissions standard for new power plants. There are proposals for 47 new generating units in Japan with a combined capacity of 22,508 MW. The new policy has been criticised by Kiko Network as a “reckless act” which is inconsistent with the country’s climate commitments. (Japan Times, Kiko Network)

Thousands at risk from coal in Philippines: Modelling by Harvard University and Greenpeace estimates 960 premature deaths are caused each year from the country’s existing 13 coal power stations. Current proposals for a further 29 new power plants would increase coal capacity by over 200 per cent. If these plants all proceed the report estimates premature deaths may increase to 2410 a year. (Greenpeace & HealthJustice)

news

India: National Green Tribunal seeks regulator’s submissions on pollution from Talabira-1 mine in Odisha.

Myanmar: Monks invited to tour Thailand cement plant in bid to allay coal pollution concerns.

US: Legal group seeks end of Peabody Energy’s US$92 million self-bonding on three Illinois mines.

US: Coal falls to 34 per cent, lowest share of US power generation since data first collected in 1949.

companies + markets

India approves major mine expansion, despite pollution: Despite ongoing controversy over air and water pollution the Ministry of Environment and Forests (MoEF) has approved a 7.25 million tonnes per annum (Mtpa) expansion of South Eastern Coalfields Ltd (SECL) Kusmunda mine in Chhattisgarh. SECL, a Coal India subsidiary, had sought permission to expand the mine to 50 Mtpa but MoEF has conditionally approved the first phase of the expansion. MoEF has left open the option for further expansion. Coal India is seeking to increase production from about 550 million tonnes this year to 1 billion tonnes by 2020. (Moneycontrol)

Duke Energy fined for US coal ash disaster: North Carolina environmental regulators have fined Duke Energy US$6.6 million over the collapse of a coal ash dam at a disused power station. The dam spilled 35,000 tonnes of coal ash and over 100 million litres of contaminated water into the Dan River. The Southern Environmental Law Center said despite the fine, coal ash continued to be stored in 32 unlined ponds at 14 current or closed power plants in the state. (WRAL.com, ClimateProgress)

Polish coal struggles to survive: Kompania Weglowa, a government-owned coal company and the largest hard coal producer in Europe, has warned it needs US$178 million from new investors by the end of March to continue operating. Polish coal production is struggling in the face of rising costs while coal-fired power producers are being squeezed by increasing renewable generation and falling wholesale prices. (Reuters, ICIS)

China cuts coal freight rate: China Railway Corporation has cut the regulated coal freight rate which could amount to a 10 per cent cut of railway companies revenues but provide some limited relief to domestic coal producers. Despite coal comprising a substantial proportion of railway freight, the Chinese Government has flagged the need to cut at least 500 million tonnes of coal production over the next three to five years. (South China Morning Post, Bloomberg)