Power Markets

Coal Shortage Crisis: 15 Of 135 Power Plants Have Zero Days Of Stock

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Concerns on coal have also come from political quarters, as Power Minister RK Singh describes the situation as "touch and go"

By - Mohammed Kudrati | Boom Live


India is running perilously low on coal for thermal power generation, shows data from the Central Electricity Authority. According to their daily release on coal stocks through the National Power Portal, 15 of India's 135 coal-fired thermal power plants have zero days worth of coal, which is as of September 30. 

On average, the data shows that there is only four days worth of coal stock, that is 8.082 million tons of coal. The data show that the daily requirement for coal across all categories of plants is 1.825 million tons. 104 power plants have critical or super critical supplies, which the data show is eight days or less worth of supplies...Full Story

China Energy Crunch Triggers Alarm, Pleas for More Coal

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By David Stanway | Reuters

As a severe power crunch roils China’s northeastern industrial heartland, senior officials face mounting pressure from alarmed citizens to ramp up coal imports thick and fast in order to keep lights on, factories open and even water supplies flowing.

With electricity shortages sparked by scant coal supply crippling large sections of industry, the governor of Jilin province, one of the hardest hit in the world’s no.2 economy, called for a surge in coal imports, while a power company association said supply was being expanded “at any cost”.

News organisations and social media carried reports and posts saying the lack of power in the northeast had shut down traffic lights…Full Story

Mgojo blames Exxaro’s 30% plunge in coal exports to “one of worst rail performances”

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By Brendan Ryan | Mining MX

EXXARO Resources churned profits and dividends in the six months to end-June but that was thanks to its non-managed iron ore investments because its core coal business was hammered by Transnet Freight Rail’s (TFR’s) disastrous performance on the coal export line to Richard’s Bay.

Coal export sales plunged 30% to 4.1 million tons (Mt) in the six months to end-June (six months to end-June 2020: 5.9Mt). That’s worse than was predicted in March by Exxaro CEO-elect Nombasa Tsengwa who warned that some two million tons of coal exports were “at risk” for all of 2021 because of TFR’s poor performance.

Tsengwa today told Miningmx that the “at risk” figure on Exxaro’s forecast coal exports for 2021 had been increased to three million tons…Full Story

Robust China coal demand amid Australia import ban fuels price rally: Russell

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By Clyde Russell | Reuters

Seaborne coal has become a quiet winner among energy commodities, lacking the attention of higher-profile crude oil and liquefied natural gas (LNG), but enjoying strong gains amid rising demand.

Both thermal coal, used in power plants, and coking coal, used to make steel, have rallied strongly in recent months. And in both cases the driver has largely been China, the world’s biggest producer, importer and consumer of the fuel.

There are two elements to China’s influence on seaborne coal markets in Asia; robust demand as the Chinese economy rebounds from the coronavirus pandemic; and Beijing’s policy choice to ban imports from Australia…Full Story

It’s not over for coal as global prices surge on hot demand

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By Dan Murtaugh and Vanessa Dezem | Sydney Morning Herald

Coal is seeing a dramatic spike in demand just as several major miners are hit with production problems, sparking a surge in prices from China to Europe.

Prices for the dirtiest fossil fuel are soaring as sweltering temperatures in North Asia increase air conditioning needs, adding to already strong demand due to the industrial recovery from the pandemic. Mine safety issues in China, heavy rainfall in Indonesia and disruptions in Colombia are constraining output.

The price spike comes amid an existential crisis for coal, with climate policies making it increasingly difficult to invest in new projects. The squeeze might not change that, but it’s providing miners with a windfall while it lasts…Full Story

Coal set to dominate Indonesia power mix in 2030 as renewables lag

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Despite major global economies moving away from coal to curb carbon emissions, coal is set to maintain its dominance in Indonesia’s power mix during 2021-30, as a decisive renewable energy policy remains absent.

By Damon Evans | Energy Voice

GlobalData’s latest report reveals that thermal power capacity in Southeast Asia’s largest economy is expected to jump from 59.38 GW (85.6% share of total power mix) to 92.53 GW in 2030. “During 2021-2030, thermal power generation will be dominated by coal-based electricity generation,” said the data and analytics company.

The expansion of renewable power in Indonesia has been relatively small compared to neighboring Southeast Asian countries. In 2000, renewable power capacity in Indonesia stood at 1.3 GW, which increased to 4.3 GW in 2020. Renewable power capacity is expected to expand at a CAGR of 12.5% to hit 14.9 GW in 2030, reckons GlobalData.

“Indonesia is expected to produce 62.2 TWh of its electricity from renewable sources in 2030, which will only be around 13% of the total power generation in the country,” reported the company…Full Story

Oil vs Water — Confessions of a carbon emitter

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From ABC (Australian Broadcasting Corporation)

Having just returned from visiting nearly 50 countries in four months, Dr Forrest says he’s seen a paradigm shift in global thinking. Sovereign leaders, business people, politicians, financiers and technology developers have developed a “genuine thirst” for a rapid shift to green energy.

He argues Australia is perfectly placed to become a world leader in the production of green hydrogen energy. For Dr Forrest, the question is not whether green hydrogen will become the next global energy form, but who will be the first to mass-produce it?…Full Story

China mulls lifting coal ban as Aussie trade war backfires big

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By David Llewellyn-Smith | Macrobusiness

Increasing noise on possible policy reversal: Shanghai Metals Market (SMM) reported yesterday that the Chinese government was in the preliminary stages of lifting its informal ban on Australian coal imports, but that such a move would still need to be approved by senior leaders.

There has been no official comment on the article. Given that China’s steel industry is facing rising costs of coke – up $140/t over the last four months – there may be a need to reconsider the restrictions currently in place, as alternative supply sources to Australian coking coal appear insufficient currently.

The first step in this process, we presume, would be to clear the backlog of vessels with around 5Mt of Australian coking coal, which set sail before the ban came into place in Oct 2020 and are still waiting outside China’s ports. Two vessels with Australian coal were allowed to discharge last week, which the market interpreted as a promising sign…Full Story

China’s ban on Australian coal drives diversification, but can it fill the gap?

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By Su-Lin Tan | South China Morning Post

In December, South Africa dispatched fresh shipments of thermal coal to China for the first time since 2014, with word in the industry that more was on the way.

A month earlier, Chinese buyers also snapped up coal from Colombia, which has never been a big seller to China because of long shipping times when compared to regional suppliers such as Australia and Indonesia.

Historically, South African coal has not been allowed into China because it contains restricted trace elements like fluorine, while Colombian coal is usually viewed as a back up option when regional prices blow out.

That China has embraced thermal coal from both countries in recent months underscores just how unwilling it is to trade with one of its biggest coal suppliers: Australia…Full Story

China’s coal-price indices stop revealing surging prices as demand soars and inventories ‘fall below warning line’

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By Sidney Leng | South China Morning Post

All four of China’s major coal-price indices have stopped being updated after a concurrence of factors sent the price of coal surging in recent weeks – signalling that the government has stepped in to cool the overheated coal market.

The factors said to be responsible for the soaring prices include China’s booming post-coronavirus industrial recovery, the annual sharp uptick in demand for coal to provide heat during the cold winter months, and an ongoing crackdown on illegal mines. Other factors at play include problems arising as local governments implement rules designed to curb pollution, and Beijing’s restrictions placed on coal imports, according to analysts…Full Story

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