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Sunday, 01 August 21
SEABORNE HARD COAL TRADE IN 2020 DECREASED BY 149 MILLION MT, OR 12.1%, TO 1,083 MILLION MT - GERMAN COAL IMPORTERS ASSOCIATION
 - Reduced coal-fired power plant fleet secures Germany’s power supply in severe winter of 2020/2021; little wind availability and hence stronger coal burn until well into the second quarter of 2021
- Coal phase-out law leads to closure of young and modern hard-coal-fired power plants
- Southern German power plant locations are very important for security of supply and hence disadvantaged in phase out scenario
- 2021 VDKi celebrates its 125th anniversary
According to Coal Importers Association, Germany, the first half of 2021 shows that hard coal continues to make an important and reliable contribution to electricity generation despite the sealed coal phase-out. The volume of electricity generated in hard coal-fired power plants increased by more than a third (35.6%) to almost 25 TWh compared with the same period of the previous year in a period of low temperatures and with significantly less wind power availability. With this increase, hard coal made a significant contribution to security of supply, underlining its important role in safeguarding the energy transition. In our opinion, this will continue to be necessary in the future, especially after the increase in the German government's forecast for electricity consumption in 2030 of between 645 and 665 TWh.
The press release from German Coal Importers Association noted that, the coal phase-out law was enacted on August 08th, 2020. Over the first three tenders, 25 bids were awarded with a bid quantity of 8,435 MW. This included some young, modern coal-fired power plants. In this respect, the mechanism of the law has not resulted in primarily older power plants with higher specific CO2 emissions being taken off the grid.
Southern German hard-coal-fired power plants are at a massive disadvantage in the auctions for the capacities to be decommissioned. Participation in the first tender was excluded, and in subsequent tenders a grid factor will be taken into account which will with high probability prevent any successful participation in those auctions. As a result, the employees of the hard coal-fired power plants in southern Germany will be at a significant disadvantage in terms of possible socially acceptable staff reductions.
The association further noted that, there is also an urgent need for action in the district heating sector. In many German cities, district heating comes from highly efficient cogeneration plants based on hard coal. VDKI member companies report difficulties with possible conversion of their plants to gas or biomass. There is a lack of funding or simply a lack of efficient gas grid connections.
Following the passing of the Climate Protection Act, the energy industry framework conditions must now be adjusted quickly.
In 2020, world hard coal production decreased by around 220 million mt to 7.06 billion mt due to the pandemic and thereby returned to the level of 2018. Essentially, only the production increases of China (+94 million mt) and India (+7 million mt) ensured that world hard coal production did not decrease even more. Seaborne trade in 2020 decreased by 149 million mt, or 12.1%, to 1,083 million mt. Seaborne coking coal exports decreased by 13.2% to 264 mt and the steam coal market decreased by 11.7% to 819 mt. Hard coal continues to ensure economic growth in Asia and other growth regions, thereby the share of seaborne trade in Asia now amounts to 84%. An increase of world production and world hard coal trade will be a fact during world economy’s recovery post COVID.
On August 31st this year, the VDKi will celebrate its 125th anniversary in the knowledge that its members continue to make an essential and highly reliable contribution to the German economy through their hard coal activities.
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Wednesday, 28 July 21
MARKET INSIGHT - INTERMODAL
Assessing the ship repair sector during this first half of the year, we continue to come across surprises and new restrictions which are trembling ...
Saturday, 24 July 21
UNDERSTANDING INDIA'S LATEST PEAK POWER DEMAND RECORD - IEEFA
Ramping up solar will be crucial as peak power demand hits during the day
At around noon on 7 July 2021, India’s instantaneous ...
Wednesday, 21 July 21
MARKET INSIGHT - INTERMODAL
Dry Buk Sales and Purchase activity has heated up during 2021, reaching record high levels during the first half of the year. The increased interes ...
Monday, 19 July 21
CHINA'S COAL OUTPUT UP 6.4 PCT IN H1 - XINHUA
China’s raw coal output climbed 6.4 percent year on year to 1.95 billion tonnes in the first six months of the year, official data showed.
...
Saturday, 17 July 21
COAL PRICES TRADE AT DECADE HIGH OF $140 PER TONNE, HERE ARE SOME FACTORS AT PLAY: CNBC-TV18
Coal prices are trading at $140 per tonne. In the last one week, coal has seen more than 8 percent gains; the last one month has seen 24 percent ju ...
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- CNBM International Corporation - China
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- MS Steel International - UAE
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- Energy Link Ltd, New Zealand
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- Directorate General of MIneral and Coal - Indonesia
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- Africa Commodities Group - South Africa
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