Japan’s power sector gets gas boost as coal fades

: Coal, Electricity, Natural gas
24/04/03

Japan's power sector is accelerating the phasing out of inefficient coal-fired plants to help reduce the country's greenhouse gas emissions. But LNG-based gas-fired generation capacity is forecast to increase, at least over the next decade.

Availability of coal-fired capacity will fall to 49.95GW in the April 2033-March 2034 fiscal year, down by 4pc, or 2.26GW, from 2023-24, according to an annual survey by nationwide transmission system operator the Organisation for Cross-regional Co-ordination of Transmission Operators. The latest outlook is more aggressive compared with the previous year's survey that showed the addition of coal-fired capacity by 290MW to 50.94GW during the 10 years to 2032-33.

No more new coal-fired power units are scheduled to be installed by 2033-34, after the 650MW Yokosuka No.1 and No.2 and the 500MW Saijo No.1 units began commercial operations in 2023. This suggests Japan's coal demand for power generation will fall further from the 102mn t consumed in 2023, based on government data.

But gas-fired capacity in 2033-34 is predicted to increase by 5pc, or 4.12GW, from 2023-24 to 83.54GW. The power sector is planning to start up 13 new gas-fired units with a combined capacity of 6.414GW during the period, while scrapping 2.295GW. Japanese power producers used 37.17mn t of LNG in 2023.

The addition of gas-fired capacity will help increase Japan's overall thermal power capacity to 149.46GW in 2033-34, up by 660MW from 2023-24, offsetting falls in coal- and oil-fired capacity. Oil-fired capacity is expected to drop by 1.19GW to 15.98GW during the period.

But thermal capacity in 2033-34 could be well below Japan's renewable power generation capacity, which is predicted to increase to 178.03GW by then, up by 29pc or 40.5GW from 2023-24. Renewables include hydroelectric, wind, solar, geothermal, biomass, waste and storage battery power sources. The power sector is boosting renewables capacity, especially solar and wind, up by 25.9GW to 100.55GW and by 12.36GW to 17.98GW respectively over the next decade.

Japan's overall power generation capacity is predicted to be 361.16GW in 2033-34, assuming 33.08GW of nuclear capacity will be available. This could meet expected peak demand of 161GW in the same year, up by 3GW from 2024-25. The firm power demand will be supported by Tokyo's digital push, although a falling population and further energy saving efforts will erode electricity consumption.

By Motoko Hasegawa

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25/06/20

Pakistan loses EU GSP+ ethanol status

London, 20 June (Argus) — The European Commission today suspended Pakistan's Generalised Scheme of Preferences Plus (GSP+) status for imports of ethanol. The removal is effective from today, 20 June. A request was lodged in May last year by France, Germany, Spain, Italy, Hungary and Poland, who sought to activate Article 30 of the GSP Regulation, arguing that ethanol coming from Pakistan since 2022 has "caused a serious disturbance to the Union ethanol market". Under Article 30, the commission can "adopt an implementing act in order to suspend the preferential arrangement in respect of the products concerned". Pakistan was granted GSP+ status in 2014, and this expired at the end of 2023. The status was temporarily extended until 2027. The GSP+ grants reduced-tariff or tariff-free access to the EU for vulnerable low- and lower- to middle-income countries that, according to the EU, "implement 27 international conventions related to human rights, labour rights, protection of the environment and good governance". It fully removes custom duties on two-thirds of the bloc's tariff lines in Pakistan's case, including ethanol. Pakistan is a major supplier of industrial-grade ethanol to Europe, but it does not export fuel-grade ethanol. According to market participants, this is because production facilities in the country lack sustainability certifications such as the International Sustainability and Carbon Certification (ISCC) that are required for biofuels to qualify under the EU Renewable Energy Directive (RED) targets. Fuel-grade ethanol was not included in the bloc's measures. Several Pakistani market participants were hopeful the GSP+ status will remain in place, which has continued to support ethanol exports from the country to the EU ( see table ). But uncertainty has weighed on demand from Europe recently, suppliers said. A participant told Argus that Pakistani sellers may look to offer more into Africa to soften the drop in demand. Some European suppliers anticipated this outcome, and have already stopped importing from Pakistan. European renewable ethanol association ePure expressed concern about the decision to exclude fuel ethanol from the scope of the measures, noting this could open the door to unintended loopholes and weaken the overall effect of the safeguard efforts. By Evelina Lungu and Deborah Sun European ethanol imports from Pakistan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Cop 28 outcome must be implemented in full: Cop 30 head

25/06/20

Cop 28 outcome must be implemented in full: Cop 30 head

London, 20 June (Argus) — The incoming UN Cop 30 summit president Andre Correa do Lago has set out his objectives for the conference in November, placing as a key priority the Cop 28 outcome of trebling renewables capacity and transitioning away from fossil fuels. Correa do Lago today said his plan is to drive "collective action" to tackle climate change, placing a strong emphasis on the global stocktake, the first of which was concluded at Cop 28 in 2023 . That outcome saw almost 200 countries commit to "transition away" from fossil fuels, as well as treble renewables capacity by 2030. The global stocktake, a five-yearly process, sets out progress made towards Paris climate agreement goals. Today's "Action Agenda must drive momentum towards the full implementation of the GST [global stocktake]", Correa do Lago said. The incoming Cop president is focusing on implementing agreements made at previous Cops, and ensuring that countries and all other stakeholders — such as sub-nationals and the private sector — work together to put the decisions into action. Correa do Lago's letter today repeated language from the Cop 28 outcome, and noted his other main themes for Cop 30, which will take place in Belem, in Brazil's Para state, on 10-21 November. As well as shifting energy, industry and transport from fossil fuel-powered to lower- or zero-carbon alternatives, he listed forests, oceans and biodiversity and agriculture and food as key topics. Further topics involved building resilience for cities, infrastructure and water and human and social development. A final priority was enablers and accelerators across the board, including for finance and technology. Correa do Lago said in May that Cop 30 should be a "pivot point" to action on climate change, and "a new era of putting into practice" what has been agreed at previous Cop summits. He has noted a difficult geopolitical situation , which could make talks more challenging. Brazil's Cop 30 presidency is also focused on climate finance at UN climate talks, currently underway in Bonn, Germany. These 'halfway point' discussions serve to cover substantial technical groundwork ahead of political talks at Cop summits each November. Brazil yesterday at Bonn presented a draft of a roadmap to scale up climate finance — from all sources — to $1.3 trillion/year by 2035. The roadmap will not be officially negotiated, although it was a key outcome from Cop 29 in 2024 and is likely to be finalised just ahead of Cop 30 this year. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Pertamina buys into Philippine renewables firm

25/06/20

Pertamina buys into Philippine renewables firm

Singapore, 20 June (Argus) — Indonesian state-owned oil and gas producer Pertamina has bought a 20pc stake in Philippine firm Citicore Renewable Energy (CREC) as it looks to expend its presence in the renewables sector. The Indonesian firm's renewable energy (RE) subsidiary, Pertamina NRE, paid $120mn for the stake in a deal signed on 19 June. This is Pertamina's first renewable energy investment in the Philippines. CREC is one of the Philippines' leading renewable energy producers, generating about 287MW peak (MWp) of solar power across the country. The company has 25.7MW of hydropower and 362 MW of wind power projects under development. CREC plans to jointly explore renewable energy investments in Indonesia with Pertamina NRE. The partnership "is a way to elevate our capability in RE development, as well as a big step in accelerating our clean energy goals," said Pertamina NRE chief executive John Anis. The deal comes after the World Bank approved a $2.1bn blended finance package earlier this week to accelerate Indonesia's clean energy investments. The partnership will help strengthen energy co-operation between the two countries, Philippine energy department assistant secretary Mylee Capongcol said The Philippines and Indonesia signed an initial agreement for energy co-operation in 2024, highlighting their joint commitment to the energy transition. "Both Indonesia and the Philippines share common energy concerns, being dependent on coal-fired power plants and seeking an orderly transition to cleaner technologies," Capongcol said. By Angie Liew Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australian Bowen Coking Coal meets FY25 guidance early

25/06/20

Australian Bowen Coking Coal meets FY25 guidance early

Sydney, 20 June (Argus) — Australian coal producer Bowen Coking Coal (BCC) met its production and sales targets for the July 2024-June 2025 financial year by the end of May, the company said 20 June. The company had sold 1.7mn t of coal which came in the middle of its full year guidance of 1.6mn t–1.9mn t. It is on track to hit the upper end of its sales guidance by the end of the current financial year on 30 June. BCC also produced 2.7mn t of run-of-mine (ROM) coal over the same period, hitting the lower end of its full year guidance. It expects to reach the upper end of its guidance by late June. BCC produces both coking and thermal coal. Coking coal accounted for 55pc of the company's total sales over the first nine months of the financial year. It did not give the year-to-date breakdown of thermal and coking coal sales. The company's unit costs for the year are on track to meet the lower end of its guidance, at A$151/t ($98/t). It left its unit cost guidance for 2024-25 financial year unchanged today at A$145/t–A$161/t. BCC's modest unit cost guidance and strong sales performance comes as it faces significant cashflow challenges. It is looking for capital and may need to pause or limit mining operations at the Burton mine complex if it is unable to secure funds. Many producers operating in Australia's Bowen Basin have faced major coal export challenges this year, in contrast to BCC's success. Two coking coal mines in the region — UK-South African producer Anglo American's Moranbah North and global miner Glencore's Oaky Creek — have been non-operational for most of the last two months, over safety and water leak issues. Australian rail operator Aurizon also reported a 4.6mn t year-on-year decline in haulage volumes in the Bowen Basin over January-April 2025 , which pushed down its total haulages by 6.2pc on the year. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia's Bowen Coking Coal faces finance challenges

25/06/20

Australia's Bowen Coking Coal faces finance challenges

Sydney, 20 June (Argus) — Bowen Coking Coal (BCC) has become the second Australian coal mining firm this month to seek capital to enable it to continue operating, as weak coal prices have cut cash flow across the industry. BCC has not revealed the amount of money it is looking to raise, but warned today that it may need to temporarily pause or cut production at its 5.5mn t/yr Burton mine complex if it does not secure additional cash. The company is looking into debt, equity and hybrid funding arrangements, but it is not certain that it will be able to secure enough funding to continue operations as usual. BCC's cash flow problems stem from persistent price weakness in the coking and thermal coal markets. Coking coal accounted for 55pc of the company's total sales over July 2024–March 2025 — the first three quarters of the financial year. Argus' 5,500kcal thermal coal price has fallen over the 2024-25 financial year (July-June), from $86.92/t fob Newcastle on 1 July to $66.62/t fob Newcastle on 19 June. Its metallurgical coal premium hard low-volatile fob Australia price declined from $237/t to $175.75/t over the same period. BCC is also facing financial challenges unrelated to prices. Queensland's coal royalty rates — which progressively increase based on commodity prices — are unsustainable and this is putting extreme pressures on producers, the company said. BCC's capital-raising campaign comes just weeks after US-Australian producer Coronado inked a $150mn financing deal with Australian state-owned electricity generator Stanwell, to ease its cash availability challenges. US credit ratings agency Fitch downgraded Coronado's credit rating from B to CCC+ on 14 May, citing volatile premium hard coking coal prices. It does not rate BCC's credit worthiness. Coal firms that rely on longer-term supply contracts and offtake deals are better positioned to manage coal price fluctuations than producers reliant on spot markets. Long-term coal supply deals and offtake agreements often include price floors that protect producers from price swings, easing cyclical pressures. Australian producers of higher-calorific value (CV) coal — around 6,000kcal — are likely facing some pricing difficulties, but have more breathing space than BCC. Australian producer Whitehaven Coal and Chinese-Australian producer Yancoal will probably only start losing money on high-CV operations when prices drop to around $80/t, based on their costs and operating margins. Argus ' 6,000kcal thermal coal price was last assessed at $102.08/t fob Newcastle. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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