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Sunday, 23 November 14
ITALY'S STEAM COAL IMPORTS TO DROP BY 11% IN 2014 - ASSOCARBONI

COALspot.com: Italy’s steam coal imports expected to drop to 16 million tons in 2014 (-11% compared to 2013); coking coal imports to plunge to 4 million tons (-15% YoY).

Global seaborne coal trade to grow by 3% to 1,158 million tons this year.

“The opposite trend on coal we are seeing in Italy, compared to the rest of the world, demonstrates the weakness of the country’s energy policy” said Andrea Clavarino, Chairman of Assocarboni.

This year Italy will import 16 million tons of steam coal, down 11% from 2013, and 4 million tons of coking coal, a fall of 15% compared to last year.

The main reason for the drop in steam coal imports is the closure of the Vado Ligure coal plant. On the other hand, the fall in coking coal imports is largely due to the enduring troubles of the ILVA steel plants in Taranto, adding to the persistent economic problems of the country.

On the contrary, global seaborne coal trade is expected to grow by 3%, reaching the level of 1,158 Mt (compared to 1,124 Mt in 2013), and global coal production is forecast at 7.2 billion tons (+2% over 2013).

Global coal demand is led by India and China, however, coal will remain the leading source of power generation in Europe too.

These are some of the figures disclosed by Andrea Clavarino, Chairman of the Italian Coal Association – Assocarboni – during the 2014 Coal Industry Advisory Board plenary meeting in Paris (CIAB).

Talking about the Italian scenario, Andrea Clavarino – who is delegate of the Italian Government to the CIAB board, a coal consultative body of the IEA – emphasised once more the risks associated with the country’s energy strategy, which has been for decades far too dependent on natural gas.

“Italy’s energy policies have made life difficult for coal operators in recent times, and we are now facing an extremely dangerous situation. A number of investments in coal power plants, which would allow the country to secure its energy independence, reduce its energy bill and equip its plants with the best available technologies, are being stalled by the authorisation process”, he stated.

“Italy’s energy system is vulnerable due to its dependence for about 50% on natural gas, 40% of which is imported from Russia. This exposes the country to the geopolitical risk of supply disruptions. It is estimated that a shortage of natural gas supply from Russia this winter would be manageable only if it lasted less than 20 days, and with no adverse weather conditions”.

“Less natural gas, which is expensive and carries obvious implications in terms of security of supply, and more coal and renewables: this is the simple proposal that Assocarboni put forward in Italy, based also on the experience of other countries, such as the UK, Germany, Spain and Turkey, which in 2013 increased the proportion of coal in their energy mix”.

“The country cannot afford any mistakes with its future energy choices. Recently, many major operators have been deterred from developing coal projects in Italy, due to a legal framework that does not guarantee investment security and timing”.

“At the beginning of October, in Canada, a coal plant of 110 MW with carbon capture and storage technology was opened, allowing the production of electricity with CO2 emissions reduced by 90%. The project engaged 1,700 people, who put in 4.5 million hours of work, for a total investment of USD 1.2 billion”.

“In a context of economic difficulties, we should not forget that the coal industry is a labour intensive industry. The construction of new plants, as well as the upgrading of existing ones, would entail the creation of thousands of new jobs”, Andrea Clavarino concluded.
Source: Assocarboni / Hellenic Shipping News



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