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.
Trump found guilty in criminal 'hush money' case
Trump found guilty in criminal 'hush money' case
Washington, 30 May (Argus) — Former president Donald Trump was found guilty today on 34 felony counts of falsifying business records in relation to the reimbursement of a $130,000 payment to an adult film star ahead of the 2016 presidential election. The unanimous guilty verdict, from a 12-member jury in New York, will inject further uncertainty into the presidential election on 5 November, where Trump is the presumed Republican nominee and is leading in many polls against President Joe Biden. Trump is the first former US president to face a criminal trial, and his conviction means he will run for office — on a campaign focused in part on rolling back energy sector regulations and expanding drilling — as a convicted felon. Sentencing is scheduled for 11 July. Trump has argued the criminal charges, filed by New York state prosecutors, were "ridiculous" and were a politically motivated attempt to interfere with his campaign. At trial, Trump's attorneys argued against the credibility of a key witness, Trump's former attorney Michael Cohen, who testified that Trump directed the falsification of the business records to conceal a "hush money" payment to the adult film star following an alleged affair. "This was a rigged, disgraceful trial," Trump said following the verdict, "but the real verdict is going to be November 5 by the people, and they know what happened here." Despite the conviction, Trump, if elected, could still serve as president. Trump could face up to four years in prison, and sentencing will be decided by the judge overseeing the case. Trump is separately facing dozens of other felony charges in federal and Georgia state court, but those cases have faced delays and may not go to trial before the election. President Joe Biden's campaign said Trump has "always mistakenly believed" he would not face consequences. Biden's campaign said that despite the verdict, it would be up to voters to decide whether Trump is re-elected. "Convicted felon or not, Trump will be the Republican nominee for president," Biden's campaign said. By Chris Knight Send comments and request more information at [email protected] Copyright © 2024. Argus Media group . All rights reserved.
Japan’s Takahama reactors win nod to extend lifespan
Japan’s Takahama reactors win nod to extend lifespan
Osaka, 30 May (Argus) — Japanese utility Kansai Electric Power has secured approval to continue operating the 870MW No.3 and No.4 reactors at its Takahama nuclear power plant past their 40-year lifespan. Japan's Nuclear Regulation Authority (NRA) on 29 May granted approval for the Takahama reactors in Fukui prefecture to extend their operational lifespan by 20 years to 60 years. This comes 13 months after Kansai filed an application in April 2023. The Takahama No.3 and No.4 reactors started operating in 1985, meaning they would reach their 40th year of operation in 2025. Japan's nuclear guidelines in principle limit a reactor's service lifespan to 40 years. But the rules allow nuclear operators to extend the lifespan by up to 20 years just once with permission from the NRA. Last year's update to the nuclear rules , which will take effect in June 2025, will also allow nuclear operators to use reactors beyond the maximum 60 years by excluding the time spent on stricter safety scrutiny following Japan's 2011 Fukushima nuclear disaster. This is subject to approval from the trade and industry minister. Tokyo is gearing up efforts to restore more nuclear capacity at existing reactors to enhance the country's energy security and reduce greenhouse gas (GHG) emissions. Under the current basic energy policy, Japan aims to cut GHG emissions by 46pc by the April 2030-March 2031 fiscal year against the 2013-14 level. This goal assumes nuclear will make up 20-22pc of the power mix, up from 9pc in 2023-24, requiring the restart of many more reactors. Japan currently has 33 nuclear reactors, with 12 operational that comprise 11.6GW of power generation capacity. To achieve the 2030-31 nuclear goal, Japan needs to increase operational capacity to 21-23GW, based on Tokyo's power generation target of 934TWh in 2030-31. This suggests Japan would have to restart all five reactors, which a combined capacity of 5.5GW, that have already passed the NRA's safety scrutiny and many of the reactors that are currently under the NRA's investigation, whose capacity totals 7.9GW, over the remaining six years. The government started discussions to review the energy policy on 15 May, aiming to revise it by the end of this fiscal year. It is still unclear what year it is targeting and what ratio will be set for nuclear and other power sources in the new policy. But the deliberation would form a key part of efforts to update the GHG emissions reduction goal, ahead of a submission of the country's new nationally determined contribution in 2025, with a timeframe for implementation until 2035. By Motoko Hasegawa Send comments and request more information at [email protected] Copyright © 2024. Argus Media group . All rights reserved.
Queensland to review CCS after rejecting Glencore plan
Queensland to review CCS after rejecting Glencore plan
Sydney, 28 May (Argus) — Australia's Queensland state government will review the long-term suitability of carbon capture and storage (CCS) following the rejection of a demonstration project planned by commodities producer and trading firm Glencore. Queensland's Department of Environment, Science and Innovation late last week rejected the environmental impact statement for Glencore's CTSCo Surat Basin CCS project, which aimed to demonstrate carbon capture from a coal-fired power station and the permanent storage of carbon dioxide. The project was unsuitable to proceed because of the potential impact on groundwater resources in the Great Artesian Basin, the department said. "The department's final decision on the EIS acknowledges the importance of the Great Artesian Basin to multiple stakeholders and makes it clear that other carbon capture and storage projects will not be viable in the Great Artesian Basin," it added. The aquifer is used for agriculture, irrigation and stock watering, with Glencore's proposal sparking strong criticism from farmers and local groups. The decision to reject the project was a step in the right direction but not enough, said Queensland Farmers' Federation chief executive Jo Sheppard. "We know that there are currently two companies with exploration permits for CCS in the Great Artesian Basin and we know that other companies globally are looking at the basin as a cheap way to conduct CCS at an industrial scale to manage their emissions," Sheppard said. "In the absence of federal policy, the Queensland government can and must now take a leadership role and put regulations in place to protect the Queensland component of the Great Artesian Basin from further CCS bids." The rejection meant the state government has now "effectively banned" CCS projects in Queensland, Glencore said. "It's a missed opportunity for Queensland and sends mixed messages on emissions reduction to industry who are looking to invest in low-emission technologies, including CCS," the company noted. "It's now up to the Queensland government to explain how it's going to meet its ambitious emissions reduction targets in the absence of CCS technology for heavy industry." The state government will assess the suitability of CCS in the state following the "logical conclusion" on the CTSCo project, Queensland premier Steven Miles said on 27 May. "Cabinet will now have a conversation about what we think the longer term and wider application of those concerns should be. That is whether CCS should be allowed and under what circumstances." Queensland last month approved two separate laws setting renewable energy and emissions reduction targets over the next decade. It set net greenhouse gas emissions reduction targets of 30pc below 2005 levels by 2030, 75pc by 2035 and zero by 2050. The government will receive advice from an expert panel on the measures needed to reduce emissions. It will need to develop and publish sector plans by the end of 2025 with annual progress reports to Queensland's parliament. By Juan Weik Send comments and request more information at [email protected] Copyright © 2024. Argus Media group . All rights reserved.
Construction issues delay Indonesia's Jambi coal road
Construction issues delay Indonesia's Jambi coal road
Manila, 28 May (Argus) — Development of a dedicated coal haulage road in Indonesia's Jambi province has been further delayed with the project facing renewed obstacles. Developers Sinar Agung Sukses and Putra Bulian Propertindo's progress with their respective sections of the road have stalled, regional authorities said, pushing the completion of the project back by another six months to December 2024 instead of the original target of June 2023. The original target date was December 2023. Sinar Agung Sukses is currently working on extending its permits as advised by the provincial government's integrated team. This is expected to be completed this month, with work for the company's section of the coal road expected to start in early June. Putra Bulian Propertindo's road works have stalled because of a lack of funding. But the Jambi regional secretariat said that the company has received outside funding for the project and development is expected to resume by June. Inti Tirta Primasakti's section of the coal road has reached 85pc completion. It is now working on an underpass in Muara Bulian, Batanghari regency with its section of the project expected to be completed by October this year at the latest. By Antonio delos Reyes Send comments and request more information at [email protected] Copyright © 2024. Argus Media group . All rights reserved.
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