Coal
Overview
Global thermal coal prices surged to record levels in 2022, experiencing unprecedented volatility. Prices have since come off as risks associated with Europe’s supply recede. At a global level, coal demand remains robust with security of supply shifting higher up the agenda of many governments in light of geopolitical upheaval.
In Europe, sanctions have shifted the region’s coal import mix away from Russia and towards other suppliers. The pace of coal plant phase-outs in the region is set to increase in the years ahead, with the role of coal in the electricity mix shifting further towards peak-load usage, making forward planning more challenging.
In Asia-Pacific, thermal coal remains a pillar of the power and industrial sectors. Global coal trade flows and price spreads are shifting, with flows from key suppliers Russia, Indonesia, Australia, South Africa, Colombia, and the US penetrating new markets, in response to price dynamics and trade barriers.
Keeping on top of prices and flows, and how coal markets intersect with other energy and commodity benchmarks, will be critical in the coming years.
Latest coal news
Browse the latest market moving news on the global coal industry.
Utah governor signs some coal bills into law
Utah governor signs some coal bills into law
Houston, 14 March (Argus) — Utah governor Spencer Cox (R) signed two bills into law this week that are aimed at supporting the state's coal industry, and three other measures are awaiting his review after passing the state legislature. House Bill 191 and House Bill 48 will take effect on 1 May. The measures are part of a slate of legislation in Utah this year intended to prop up the state's coal industry, including by possibly slowing down coal-fired power plant retirements. More than half of the coal produced in Utah is shipped to power plants in the state, federal government data show. Utilities have plans to close four of the six coal plants in Utah by 2032. House Bill 191 instructs the Utah Public Service Commission (PSC) to consider a number of factors including reliability, dispatchability and affordability before ruling on utility proposals that include the "early" retirement of electricity plants. The other measure signed into law by Cox puts the Utah Office of Energy Development in charge of developing strategies for engaging with federal entities on state energy interests and overseeing legal strategy "on federal overreach and permitting delays." The same day Cox signed those bills, the legislature sent him Senate Bill 224, which establishes parameters for some utilities to pass on to ratepayers costs associated with acquiring, operating and maintaining "proven dispatchable resources" in the state. The measure also would allow large-scale electric utilities to establish a separate fund for paying damages from fires. The legislature also sent House bill 374 and Senate bill 161 to Cox on 12 March. Bill 374 directs Utah's Office of Energy Development to devise a state energy plan prioritizing reliable and dispatchable resources including coal and natural gas, and supports "efficient utilization and development" of both renewable and nonrenewable energy resources. Bill 161 would require the state Office of Development to establish a fair market value for power plants that are intended to be shut down, and gives the state the option of purchasing the plants. The last bill is thought to be aimed at possibly keeping the Intermountain Power Project (IPP) running on coal after operator Intermountain Power Agency completes construction of an 840MW natural gas and hydrogen plant in 2025, though the bill does not mention IPP by name. Cox has 20 days from the time he receives the bills to review them. The goals of House bills 374 and 48 "is to ensure Utah is taking prudent, measured approaches to its energy policy; this includes ensuring energy stays affordable and reliable," Utah's Office of Energy Development said. "These bills put the tools in place to ensure our office and industry are unified in our approach to energy development across the state." PacifiCorp, which operates two coal-fired power plants and three natural gas plants in Utah, did not immediately respond to a request for comment. The utility is expected to issue its 2023 Integrated Resource Plan by April. By Elena Vasilyeva Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Final locks to open on upper Mississippi River
Final locks to open on upper Mississippi River
Houston, 13 March (Argus) — Locks 3 and 7 on the upper Mississippi River will open at midnight on 15 March after being closed for repairs, allowing access to St Paul, Minnesota, for barge carriers, according to the US Army Corps of Engineers. Barges are already heading toward the locks carrying plenty of commodities, to the northern Plains for distribution. Locks 7 and 3 are located at miles 703 and 796 of the upper Mississippi River, respectively. The Corps anticipates barges passing through the locks starting over the weekend. Navigation repairs for the locks have been finished as well, the Corps said. Maintenance for the locks determined the opening date this year, as the Lake Pepin ice measurements that typically establish the date were cancelled due to unseasonably warm weather. A barge carrier mentioned some of their barges may arrive in time to cross at midnight. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Pennsylvania governor floats new CO2 market
Pennsylvania governor floats new CO2 market
New York, 13 March (Argus) — Pennsylvania governor Josh Shapiro (D) on Wednesday proposed a new program to require power plants to purchase allowances to account for their greenhouse gas (GHG) emissions, envisioned as a replacement for a similar multistate system that the state has been trying to join for years now. The program would set an overall GHG cap and require "55 or so" large power plants to purchase allowances at state-run auctions to cover their emissions, Shapiro said. If the legislature passes a bill to create the cap-and-invest program, Shapiro would "immediately" remove the state from the Regional Greenhouse Gas Initiative (RGGI), a multistate power plant carbon market. "We won't have any other state determining what is right for us here in Pennsylvania," Shapiro said. Despite Shapiro's misgivings about RGGI, which his predecessor strongly supported, his administration is currently appealing a court order that barred the state from participating. The state Supreme Court, which is controlled by judges elected as Democrats, is hearing the appeal to determine whether the state's CO2 trading regulations can go into effect. The new proposal is an attempt to respond to Republican and energy industry concerns about the effects of a carbon pricing program in a state that produces significant amounts of coal- and natural gas-fired power and is a net exporter of energy. Shapiro's office says that 70pc of all proceeds raised by program auctions will go toward reducing ratepayer costs, with some of the remaining proceeds going toward new clean energy investments — such as carbon capture and clean hydrogen — in communities that historically sited coal, oil, or natural gas facilities. Shapiro's proposal differs from other climate policy recommendations that have emerged from his administration. A working group of energy, labor, and environmental leaders last year recommended a cap-and-trade program covering all PJM Interconnection states, though such a proposal faces grim prospects in Republican-controlled legislatures in the region, such as in Ohio and West Virginia. A consultant hired by the Department of Environmental Protection more recently recommended an economy-wide carbon market covering more than just the power sector. Shapiro's plan, which has not been released as bill text, is otherwise light on details. It is unclear, for instance, how much authority the legislation would delegate to the Department of Environmental Protection to set CO2 caps and manage the program's nuances. PennFuture, one of the environmental groups suing in defense of the state's RGGI rule, said that Shapiro must demonstrate that his proposal would deliver the same amount of emissions reductions as RGGI. RGGI opponents reacted coldly to the governor's proposal. Senate majority leader Joe Pittman (R) said the "best way to swiftly advance meaningful discussions around energy policy" is for the administration to drop its RGGI appeal to the state Supreme Court. Coal groups said a Pennsylvania carbon market, even one with lower cost allowances than in RGGI, could still cost generators hundreds of millions annually and pressure some to retire early. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India’s Adani frontrunner for Lanco power plant
India’s Adani frontrunner for Lanco power plant
Singapore, 12 March (Argus) — Indian private-sector utility Adani Power has emerged as the frontrunner to acquire thermal generation capacity and an under-construction project from domestic debt-ridden Lanco Amarkantak Power. The committee of creditors has approved a resolution plan for Lanco under a corporate insolvency resolution process, Adani said. Lanco owned and operated a 600MW thermal power plant in central India's Chhattisgarh state and was planning 1.32GW of generating capacity under the second phase of the project. Adani, India's largest private-sector utility, continues to boost capacity through acquisitions when most of its industry rivals have stopped expanding coal-fired power generation. It aims to reach about 21GW in capacity in the next few years. Adani operates 15.25GW in Gujarat and Maharashtra states of west India, Madhya Pradesh in central India, Rajasthan in north India, Karnataka in south India and Jharkhand in east India. The company is carrying out a thermal capacity expansion of 1.6GW at its 1.2GW Mahan power project in Madhya Pradesh, while further expansion plans are under evaluation. Adani is also in the process of acquiring a 1.2GW debt-ridden thermal power project in south India's Tamil Nadu state. Plant operator Coastal Energen is also having a corporate resolution insolvency process. Adani raised imported thermal coal use compared with a year earlier during October-December 2023 to meet rising power demand. It used 6.22mn t of imported coal over October-December, almost fivefold that of 1.29mn t a year earlier. Domestic coal burn also rose by nearly 8pc to 7.3mn t during October-December following higher availability of domestic supplies. Adani consumed 14.18mn t of imported coal over April-December, the first nine months of the 2023-24 fiscal year ending 31 March. This was up from 5.63mn t in the same period of 2022-23. Its domestic coal burn increased by about 9pc from a year earlier to 23.13mn t over April-December 2023. Higher imports coincided with a sharp drop in seaborne prices. The Argus-assessed Indonesian GAR 4,200 kcal/kg coal averaged $58.244/t fob Kalimantan over October-December 2023, down by over 35pc from an average of $90.496/t a year earlier. By Ajay Modi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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