4 October 2017, The Conversation, Why are we still pursuing the Adani Carmichael mine? Why, if Adani’s gigantic Carmichael coal project is so on-the-nose for the banks and so environmentally destructive, are the federal and Queensland governments so avid in their support of it? Once again the absurdity of building the world’s biggest new thermal coal mine was put in stark relief on Monday evening via an ABC Four Corners investigation, Digging into Adani. Where the ABC broke new ground was in exposing the sheer breadth of corruption by this Indian energy conglomerate. And its power too. The TV crew was detained and questioned in an Indian hotel for five hours by police. It has long been the subject of high controversy that the Australian government, via the Northern Australia Infrastructure Facility (NAIF)that is still contemplating a A$1 billion subsidy for Adani’s rail line, a proposal to freight the coal from the Galilee Basin to Adani’s port at Abbot Point on the Great Barrier Reef. But more alarming still, and Four Corners touched on this, is that the federal government is also considering using taxpayer money to finance the mine itself, not just the railway. No investors in sight As private banks have walked away from the project, the only way Carmichael can get finance is with the government providing guarantees to a private banking syndicate, effectively putting taxpayers on the hook for billions of dollars in project finance. The prospect is met with the same incredulity in India as it is here in Australia: Read More here
Tag Archives: coal
4 October 2017, The Conversation, Australia’s $1 billion loan to Adani is ripe for a High Court challenge. Indian mining giant Adani’s proposal to build Australia’s largest coal mine in Queensland’s Galilee Basin has been the source of sharp national controversy, because of its potential economic, health, evironmental and cultural risks. These concerns were amplified this week when India’s former environment minister Jairam Ramesh told the ABC’s Four Corners: My message to the Australian government would certainly be: please demonstrate that you have done more homework than has been the case so far. It’s a valid warning, considering that a Commonwealth investment board is considering loaning Adani A$1 billion in federal money to assist the development of mining infrastructure. The loan, expected to be announced any day now, will no doubt agitate further political controversy. It is also likely to pave the way for yet more court challenges against Adani’s proposal. Read More here
15 September 2017, Renew Economy, Blackouts and baseload: Debunking myths of AEMO reports and Liddell. The day after the release of the two key reports from the Australian Energy Market Operator last week – its annual Electricity Statement of Opportunities and the specially commissioned report on dispatchable generation requested by the federal government – RenewEconomy could barely believe what it read and heard in the media. Consumers were being frightened into thinking that the lights were going out, the economy would collapse, and they’d all be better off going out to buy a generator and a supply of candles and batteries. The only possible solution to the crisis, we were told, was to stop renewable energy and keep the Liddell coal generator on line. What was missed – in the fog of politics, ideologies and deliberate misinformation – were the fundamental messages of the two reports: that the energy system is transitioning quickly, and it is more or less unstoppable, because of the march of technologies and global trends. This is not a bad thing, AEMO boss Audrey Zibelman underlined. But it does require some policy certainty and some co-ordination to ensure that Australia’s dirty, expensive and increasingly unreliable grid can be transformed into a smarter, cleaner, more reliable and cheaper source of power. Read More here
13 September 2017, The Conversation, More coal doesn’t equal more peak power. The proposed closure date for Liddell, AGL’s ancient and unreliable coal power station, is five years and probably two elections away. While AGL has asked for 90 days to come up with a plan to deliver equivalent power into the market, state and local governments, businesses and households will continue to drive the energy revolution. At the same time as AGL is insisting they won’t sell Liddell or extend its working life, government debate has returned to the Clean Energy Targetproposed by the Finkel Review. Now Prime Minister Malcolm Turnbull is suggesting a redesign of the proposal, potentially paving the way for subsidies to low-emission, high-efficiency coal power stations. But even if subsidies for coal are built into a new “reliable energy target”, there’s no sign that the market has any appetite for building new coal. For a potential investor in a coal-fired generator, the eight years before it could produce a cash flow is a long time in a rapidly changing world. And the 30 years needed to turn a profit is a very long time indeed. We also need to remember that baseload coal power stations are not much help in coping with peak demand – the issue that will determine whether people in elevators are trapped by a sudden blackout, per Barnaby Joyce. It was interesting that a Melbourne Energy Institute studyof global pumped hydro storage mentioned that electricity grids with a lot of nuclear or coal baseload generation have used pumped storage capacity for decades: it’s needed to supply peak demand. Read More here