Tag Archives: Coal-fired power plant

China’s aluminum sector must shut down inefficient coal power to meet climate goals – report | Instant News


(Reuters) – China’s aluminum sector will have to cover a dedicated power capacity equivalent to more than Germany’s entire coal fleet over the next decade to keep Beijing on track to fulfill its carbon pledge, said climate think-tank Ember.

FILE PHOTOS: Aluminum bar stock seen inside factory in Dongguan, China April 10, 2018. REUTERS / Bobby Yip

China accounts for more than half of global aluminum production, producing 37 million tonnes by 2020. President Xi Jinping has promised that China will achieve peak emissions by 2030 and carbon neutrality by 2060.

Ember, in a report to be published on Monday, said last year’s record aluminum output emitted more CO2 than several countries, including Indonesia and Brazil.

China will need to close around 47 gigawatts of inefficient subcritical coal power capacity dedicated to aluminum over the next 10 years or more if it is to become carbon neutral by mid-century, report author Muyi Yang told Reuters.

The total German coal power capacity is 42 GW.

Chinese aluminum makers have long relied on off-grid captive power plants for energy-intensive smelting processes, with generating units alone accounting for about 65% of the electricity they use, according to Yang.

But they are being pushed by the government to use cleaner sources of electricity and join China’s long-awaited emissions trading scheme in the low-carbon aluminum drive.

Recent years have seen a significant migration of aluminum capacity to China’s southwestern Yunnan province, which has abundant hydropower resources.

But “further action is still needed,” said Yang, a senior electricity policy analyst at Ember. “The magnitude of the challenge is enormous.”

Smelters should use cleaner electricity when available but can also improve production efficiency and do better recycling of aluminum, he said, adding China should encourage more efficient use of aluminum throughout its economy.

More than 45% of China’s inefficient captive coal capacity is at the heart of the Shandong province’s smelter, said Ember, with more than a third, or 17 GW, owned by China’s leading private sector producer Hongqiao Group.

Hongqiao, one of the smelters that has moved capacity to Yunnan, did not immediately respond to a request for comment.

Reporting by Tom Daly; Edited by Susan Fenton

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Brazil will be ‘key player’ in climate summit, talks – White House | Instant News


FILE PHOTO: White House Press Secretary Jen Psaki addresses reporters at the White House in Washington, USA, January 25, 2021. REUTERS / Kevin Lamarque

WASHINGTON (Reuters) – Brazil will be a key player in climate negotiations with the Biden administration, the White House said Thursday.

“This is a huge priority for President Biden and that’s why he asked his good friend, former Secretary (John) Kerry, to lead our international climate efforts, and of course Brazil will be a key partner in that,” White House press secretary Jen Psaki told a press conference.

During the 2020 presidential campaign, Biden said Brazil’s rainforests were being “torn down” and the countries proposed offering Brazil $ 20 billion to stop deforestation or face “economic consequences”.

Reporting by Nandita Bose and Doina Chiacu; Edited by Leslie Adler

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Italy’s A2A spends 16 billion euros in green drives | Instant News


MILANO (Reuters) – Italy’s largest regional utility company, A2A, will spend 16 billion euros ($ 19.45 billion) between now and 2030 to reduce its carbon footprint and grow its waste and water business.

Under its new 10-year plan, the Milan-based utility said it aims to cut its carbon emissions by 47% from 2017 levels and to double its renewable capacity to 5.7 gigawatts through more than 4 billion euros of investment and acquisitions.

The group, which has about 970 megawatts of coal capacity, said it aims to phase out coal-fired power plants by 2022, ahead of the national target set for 2025.

It will spend 6 billion euros on waste management and water businesses and aims to become a significant European player.

“This is a solid foundation that will allow us to create a strategic infrastructure, innovative and essential for the country’s growth and relaunch, to be ambitious and looking to Europe,” said A2A CEO Renato Mazzoncini.

At 1005 GMT A2A the share was up more than 4%.

Utilities across Europe are investing in renewable energy and grids as governments seek to power economies to meet climate targets.

A2A, which is controlled by the cities of Milan and Brescia, said it would double its core revenue to 2.5 billion euros by the end of the plan from 1.18 billion euros expected for 2020. Net income will grow by more than 8% annually.

The growing margins will allow it to increase its dividend for 2020 to at least 8 euro cents and at least 8.2 euro cents for 2021, he said.

The utility company, which plans to create 6,000 new jobs during the plan period, said that after 2022, dividends will grow at least 3% per year.

“… the targets for the next 3 years are quite in line with consensus, while the company expects a very aggressive growth assumption beyond … There is a tremendous increase in the projected total capital spending,” Mediobanca Securities said.

Reporting by Giancarlo Navach, written by Stephen Jewkes, editing by Giulia Segreti and Barbara Lewis

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Germany’s hard coal imports could fall by a fifth by 2021 – VDKi | Instant News


FRANKFURT, Jan 15 (Reuters) – German hard coal imports in 2021 could fall 18.6% year-on-year to 26.7 million tonnes, according to forecasts of the VDKi lobby group on Friday, citing lower use by steelmakers. in the COVID-19 crisis and price competition with gas and renewable energy in power generation.

The coal importer group also published preliminary data for the past year. It said imports had fallen to 32.8 million tonnes in 2020, a 24% decrease from 2019. (reporting by Vera Eckert; editing by Thomas Seythal)

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COLUMN-China’s ban on Australian coal trading power flowing to realign: Russell | Instant News


(Opinions expressed here are those of the author, a columnist for Reuters.)

* GRAPH – Imports of coal by sea from China vs from Australia, Indonesia: tmsnrt.rs/35zCHFM

LAUNCESTON, Australia, Jan 12 (Reuters) – China’s effective ban on Australian coal imports is forcing a readjustment in flows between the world’s two biggest importers and the world’s two biggest exporters.

Indonesia and Australia dominate the global seaborne coal trade, with the Southeast Asian country topping the list for thermal coal, which is used primarily in power generation, while Australia is the largest shipper of coking coal, which is used to make steel, and second in thermal coal.

China is the world’s largest coal importer, while India ranks second.

China’s main coal supplier is Australia, but this ended in the second half of last year following Beijing’s unofficial ban on imports from Australia, believed to be in retaliation for Canberra’s calls for an international investigation into the origins of the coronavirus pandemic.

Even though Indonesia is China’s second largest supplier, demand is now booming as imports from Australia have fallen to almost zero.

For India, the situation has turned around, with Indonesia in danger of losing its status as the South Asian nation’s main supplier to Australia, a country that in the past shipped only relatively small volumes of coking coal to India.

The shifts in coal flows are evident in the December data compiled by Refinitiv.

China’s imports from Australia are just 447,523 tonnes, the lowest since Refinitiv began compiling ship tracking and port data in January 2015, and dropping massively from a 2020 high of 9.64 million tonnes in June.

Even moderate volumes from Australia may not be available to end users as Refinitiv data only measures cargoes that have already been issued, meaning it is likely that the shipment has not yet passed customs.

However, China’s imports from Indonesia surged to 12.19 million tonnes in December, surpassing the previous record of 10.47 million in April 2019, and almost tripling from the 4.3 million recorded in November.

India’s imports from Australia totaled 6.24 million tonnes in December, up from 5.06 million in November and 5.48 million in October, with the past three months beating the previous high of 4.81 million from December 2019.

India’s imports from Indonesia totaled 5.65 million tonnes in December, below the volume from Australia, and down from 5.82 million in November and 6.75 million in October.

This December figure is also far below India’s record imports from Indonesia, 10.58 million tonnes in April 2019.

It is worth noting that most of Australia’s coal exports to India are coking coal, but ship tracking data suggests an increase in thermal coal volumes as well, possibly as a result of Australian miners seeking new markets to replace lost shipments to China.

INDONESIA WINS WITH PRICES

While the flow data clearly show the changes brought about by Beijing’s ban on imports from Australia, the impact on prices is less pronounced.

Indonesian thermal coal generally has a lower energy value than Australia, and is therefore trading at a discount to the benchmark Australian Newcastle index.

Indonesian coal with an energy value of 4,200 kilocalories per kg, as assessed by commodity price reporting agency Argus, ended the week of January 8 at $ 45.56 per tonne, the highest since July 2018.

Prices have rallied 101.3% since 2020 lows of $ 22.63 per tonne in the week to September 4.

That looks like an impressive rally, and of course additional demand from China is a factor, but Australian thermal coal prices are also rising, even though buyers from China are losing out.

Newcastle’s weekly index was at $ 80.36 per tonne on Jan. 8, down from its recent high of $ 83.26, but still 73.3% above its 2020 low of $ 46.37, which was reached in the week to 4 September.

The rise in the Newcastle index is likely related to increased demand from traditional Australian customers in north Asia, such as Japan, whose imports from below rose to 9.17 million tonnes in December, the highest since January 2020, and up from 8.13 million in November. .

Demand is driven by cooler than usual weather in much of northern Asia, and limited availability of spot cargoes for liquefied natural gas, which hinders gas fired generation.

While Indonesia appears to be the main beneficiary of rising prices and China’s ban on Australian imports, the biggest loser is definitely China.

It has had to pay more for alternative supplies, and there have been reports of coal shortages in some parts of the country, such as winter bites.

China’s domestic coal prices have also surged, with a benchmark thermal supply in Qinhuangdao SH-QHA-TRMCOAL soared to the highest level since consultants SteelHome began providing assessments in 2011.

Prices hit 878 yuan ($ 135.79) per tonne on Monday, up 88% since a 2020 low of 467 yuan in early May.

If Beijing succumbs to the Australian coal boycott, it is likely that domestic prices will fall, as they will face competition from cheaper imports. (Edited by Christian Schmollinger)

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