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Indonesia advances coal-fired power phase-out to 2040

  • Spanish Market: Coal
  • 20/11/24

Indonesia plans to retire all coal-fired power plants within the next 15 years, advancing an earlier target of 2056, President Prabowo Subianto said today.

This follows from Subianto's address at the G20 Summit in Rio de Janeiro, Brazil, on 19 November, where he emphasised the importance of global collaboration to achieve green energy transition. He also claimed Indonesia is optimistic it can reach net zero emissions before 2050, a decade ahead of its previous commitment.

"We plan to build more than 75GW of renewable energy in the next 15 years [to replace coal-fired power]," Subianto added.

His claims come at a time when Indonesia's deputy minister of energy and mineral resources (ESDM) Yuliot Tanjung admitted in a speech today that the country's reliance on coal for electricity is still high.

Tanjung said the country has huge potential for solar and hydropower generation, owing to its geographical location, but they require technological developments and large investment.

Indonesia has the world's fifth-largest operating coal-fired power capacity of 52.31GW, with about 9.81GW more under construction, according to Global Energy Monitor data. Only about 15pc of Indonesia's total installed generation capacity of more than 90GW is currently powered by renewables.

New coal-fired projects have continued to be proposed this year, despite the Indonesian government's previous commitment in 2021 to stop building new coal-fired plants after 2023.

In addition to power generation, coal is also heavily utilised in Indonesian industry, which contributed to domestic coal production reaching a record 720mn t so far this year. Indonesia could also be on track for a new output record this year, with ESDM expecting 2024 output to surpass 800mn t, up from 775mn t in 2023, if the current output trend continues for the rest of this year.

Indonesia and the Philippines are the two most coal-reliant countries in southeast Asia, according to energy think-tank Ember.


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ACBL sets release dates for Illinois River lock


13/02/25
13/02/25

ACBL sets release dates for Illinois River lock

Houston, 13 February (Argus) — Major barge carrier American Commercial Barge Line (ACBL) has issued its earliest release dates for Illinois River barges planning to transit the Lockport Lock, which closed for maintenance last month. Release dates will be from 23 February through 19 March for barges expecting to pass through the Lockport Lock over the spring season, ACBL said Wednesday. The US Army Corps of Engineers (Corps) expects to reopen the Lockport Lock on 25 March, the Corps said when it announced the closure . The Corps closed the lock on 28 January to install new vertical lift gates and make repairs. The closure has cut off major trade hubs such as Chicago, Illinois, and Burns Harbor, Indiana, from Illinois River barge transportation. Lock 27 and the Mel Price Lock above St Louis will remain partially closed through 1 April, as they are also undergoing maintenance by the Corps, ACBL said. The barge line acknowledged higher demurrage rates were likely for those who loaded barges prior to the released dates. Initial transit on the Illinois River is also anticipated to have a significant backlog in the spring months. By Meghan Yoyotte ACBL's Illinois River release dates Origin Port Barges destined above Lockport Lock, on IL River Mobile, AL 25 Feb Houston, TX 23 Feb Weeks Island, LA 26 Feb New Orleans, LA 3 Mar Pittsburgh, PA 2 Mar Cincinnati, OH 5 Mar Decatur, AL 10 Mar Memphis, TN 10 Mar Evanscille, IN 12 Mar Cairo, IL 16 Mar St Louis, MO 19 Mar — ACBL Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US wholesale inflation holds near 2-year high in Jan


13/02/25
13/02/25

US wholesale inflation holds near 2-year high in Jan

Houston, 13 February (Argus) — Prices paid to US producers in January held at nearly a two-year high, another sign of mounting inflation pressures that may keep the Federal Reserve from lowering rates for longer. Prices paid to producers (PPI) rose by 3.5pc in January from a year earlier, matching the prior month's gain, the Bureau of Labor Statistics said today. Analysts surveyed by Trading Economics had forecast a gain of 3.2pc. The PPI number follows a higher-than-expected consumer price reading Wednesday which together reinforce the message that the Federal Reserve may hold off longer on rate cuts, especially in the face of potentially inflationary trade conflicts and migrant roundups under the new US administration. PPI excluding food, energy and trade services rose by 3.4pc in January following a 3.5pc gain in December. PPI for services rose by 4.1pc in January following a 4pc gain in December. Wholesale prices for energy were flat following a 2pc annual decline the prior month. PPI for goods rose by 2.3pc in January following a 1.8pc gain in December On a monthly basis, headline PPI rose by a seasonally adjusted 0.4pc, compared with a 0.5pc gain in December and a 0.2pc increase in November. Services PPI rose by 0.3pc in December, following a monthly gain of 0.5pc in December and a 0.1pc gain in November. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump planning rollout of 'reciprocal' tariffs


07/02/25
07/02/25

Trump planning rollout of 'reciprocal' tariffs

Washington, 7 February (Argus) — President Donald Trump is considering announcing "mostly reciprocal tariffs" on an undisclosed number of countries early next week, in a possible shift from a campaign plan to impose universal tariffs of 10-20pc against all imports to the US. Trump did not provide specifics on the idea, but said he would probably have a meeting on 10 or 11 February before making an announcement. The potential rollout of the reciprocal tariffs appears likely to take place after China's planned 10 February date to start collecting a 10pc tariff on crude, coal and LNG from the US that Beijing imposed in response to a 10pc blanket tariff that Trump has placed on Chinese imports. "I think that's the only fair way to do it," Trump said of his plan to "probably" pursue reciprocal tariffs. "That way, nobody's hurt. They charge us, we charge them. It's the same thing. And I seem to be going in that line, as opposed to a flat fee tariff." Trump has said he views tariffs — which he says is his "favorite word" — as a virtually cost-free way to raise revenue that will cut the US trade deficit and boost domestic manufacturing, without raising prices for goods in the US. But earlier this week, Trump delayed his plan to place an across-the-board 25pc tariff on Canada and Mexico just hours before it was set to take effect, as stock markets began to plunge on the threat of the start of a damaging trade war between the US and its two largest trading partners. The vast majority of economists say across-the-board tariffs are an inefficient way of raising revenue, with costs that would fall the hardest on low-income and middle-income US consumers already reeling from years of inflation. US Senate minority leader Chuck Schumer (D-New York) on 2 February said kicking off a tariff war with Canada and Mexico "makes 100pc no sense" and would raise costs for US consumers. Trump discussed his reciprocal tariff idea today during a press conference with Japan's prime minister Shigeru Ishiba. Trump said he wants to "get rid of" the US' trade deficit with Japan he estimates is $100bn/yr, primarily by selling the country US oil, LNG and ethanol. Trump said he also spoke with Ishiba about efforts related to the "pipeline in Alaska", an apparent reference to the proposed 20mn t/yr Alaska LNG project, which is expected to cost more than $40bn and would require building a natural gas pipeline across Alaska. Ishiba said it was "wonderful" that Trump had lifted a temporary pause on LNG licensing on his first day in office, and said Japan was interested in purchasing US LNG, ethanol, ammonia and other resources as a way to cut down on the US trade deficit with Japan. "If we are able to buy those at a stable and reasonable price, I think it would be a wonderful situation," Ishiba said through a translator. Japan is keen to increase its overall investment in the US to $1 trillion, Ishiba said. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

South Africa has 44mn t/yr coal projects in pipeline


03/02/25
03/02/25

South Africa has 44mn t/yr coal projects in pipeline

Cape Town, 3 February (Argus) — South Africa currently has 16 project proposals for mostly thermal coal projects in the pipeline with an aggregate capacity of 44mn t/yr, according to the IEA. Globally, new or expanded coal mines aimed at the export market with a total capacity of 430mn t/yr are planned, the IEA says in its Coal 2024 Analysis and forecast to 2027 report. Last year coal consumption in Africa increased by 6mn t to 191mn t, the IEA estimates, driven mainly by South Africa's higher coal consumption owing to an improved performance by state-owned Eskom's electricity plants. In the near term, the IEA forecasts modest growth in Africa's total coal demand to 203mn t/yr by 2027. South Africa increased its coal consumption to 165mn t last year on improved economic activity and less load shedding. The country is by far the biggest coal consumer in Africa, accounting for 86pc of the continent's coal consumption in 2023. Strong electricity demand growth is expected to create room for an additional 14 TWh of coal-fired generation in South Africa over the next three years, the IEA predicts. Three coal-fired power plants of 4.5GW capacity that were due to shut by 2027 will run until at least 2030 . Hence the IEA projects that South Africa's coal consumption for power generation will rise to 124mn t by 2027. "The future of coal demand in South Africa will be shaped by policy makers' decisions regarding the coal-fired power fleet, either to invest in their maintenance to keep them running for longer or to phase them out," the IEA says. Coal production in South Africa grew marginally over the past two years to 234mn t in 2024, the IEA estimates. The main challenges to increasing production have been an unstable electricity grid and frequent disruptions to coal transport as state-owned Transnet has struggled with collisions, equipment failures, cable theft, derailments, power outages and increased costs. Last year, South Africa's Canyon Coal started shipments from its Gugulethu mine that is set to produce 2.4mn t/yr, half of which will be NAR 5,500 kcal/kg fob RB thermal coal. After years of being in administration, the Optimum coal mine was added to the project pipeline after new owner Liberty Coal settled outstanding legal issues related to the mine. Liberty plans to increase Optimum's capacity to 11mn t/yr of mid-CV thermal coal, but the mine first needs significant reconstruction. Until 2027, the IEA expects coal production in South Africa and most other African countries to remain flat, apart from Ethiopia where a new coal mine will slightly boost output, the IEA said. But growing steel production in Mozambique and Zimbabwe is set to propel coal production. In Mozambique, India's state-controlled Steel Authority of India (Sail) will invest up to $200mn over the next four years to double the capacity of its Benga coking coal mine to 4.5mn t/yr. Most of the mine's output is intended for Sail's internal use in India. In Zimbabwe, Chinese firm Tsingshan Holding's Dinson Iron and Steel (Disco) unit started production last year, with initial capacity of 600,000 t/yr to be expanded to 5mn t/yr once the plant is complete. In addition, Mozambique, Zimbabwe and Botswana plan a major infrastructure project, which includes a new deepwater port at Techobanine, south of Maputo, that will cost up to $1.5bn. Botswana plans to revive a long-standing project to create a 1,700km rail link through Zimbabwe to Maputo, enabling the landlocked country to export its coal reserves estimated at over 200bn t. South African infrastructure operator Grindrod will take full ownership of the Matola Coal Terminal in Mozambique by spending $77mn to acquire Vitol's 35pc stake. Grindrod then intends to expand the terminal's capacity beyond its current 7mn t/yr. Thai Mocambique Logistica plans to construct a coal port at Macuse in Mozambique and build a railway line to connect the port with coal mines in Tete province. Neighbouring Malawi also aims to import coal from Tete via a rehabilitated railway from Balaka to its capital Lilongwe. "The country is seen as a favourable option for coal exports compared to South Africa, whose ports are expected to reach capacity limits," the IEA says. Elaine Mills Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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