19 July 2016, Renew Economy, Frydenberg’s choice: Make a big step forward, or a big step back. The make-up of Australia’s new parliament cut a depressing vista on Monday. There was Pauline Hanson, demanding royal commissions into Islam and climate science, who along with other minor party and independent Senators will most likely hold the balance of power in the Senate, with as many as 7 seats but a minimum of 3. In the government, the Coalition led by Malcolm Turnbull has elevated more conservatives to the front bench. Zed Selseja, a conservative who opposes gay marriage and weekend penalty rates, is minister assisting social services.Hanson gave us a taste of what is to come in an extraordinary debate on ABC’s Q&A, which was punctuated with the sort of ignorance and ideology we often see in the energy sector – see South Australia. Matt Canavan, a conservative who dismisses climate science, is appointed resources minister responsible for the coal industry and building dams in northern Australia. Be under no doubt about Canavan: the only energy that matters to him, he has said often, is cheap energy, dirty or not. Read More here
Tag Archives: coal
24 May 2016, Renew Economy, Debt-ridden India energy group drops mention of Galilee Basin projects. India energy group GVK Power & Infrastructure last weekend reported its year-to-March 2016 results, detailing its fourth consecutive annual loss, but it’s most telling component is the information it did not provide. Its accounts make no mention of the Alpha, Alpha West and Kevin’s Corner coal mines and associated infrastructure proposal for the Galilee Basinin northern Australia —projects GVK has long been promoting, and which it bought its controlling share from the Hancock group. The company is in financial distress. Net debt increased US$435 million to a record high of US$3.5 billion. In contrast, shareholders equity shrank 30 percent year on year to US$202 million. Earnings Before Interest and Tax (EBIT) covered just 36 percent of the US$321m of net interest expense for 2015-16. Into its sixth year, the Alpha project has made no measurable progress, and financial close remains elusive and distant while the coal market is as structurally challenged as ever. With India Energy Minister Piyush Goyal remaining committed to the target for India to aggressively cut thermal coal imports, any strategic merit of this proposal for India has lapsed. Consistent with this, NTPC Ltd this month reiterated its plans to cease thermal coal imports in the current 2016-17 year. The slump in the book value of shareholders means net debt is 17 times equity, and that is before any impairment of the highly financially leveraged and stranded Alpha coal proposal in Queensland. The results make no mention of this off-balance-sheet US$1 billion-plus investment that is entirely debt funded. Read More here
13 May 2016, The Conversation, South Australia is now coal-free, and batteries could fill the energy gap. South Australia’s last coal-fired power station closed on Monday this week, leaving the state with only gas and wind power generators. The Northern Power Station, in Port Augusta on the northern end of the Spencer Gulf, has joined Playford B – the state’s other coal-fired power station which has already been retired. The coal mine at Leigh Creek that supplied brown coal to the power stations also closed earlier this year, so there is no easy option for re-opening the power stations. The immediate impact of the closure was a brief wobble in wholesale electricity prices, with more energy brought in from Victoria’s brown coal power stations (adding to carbon emissions). But how could it affect the state in the long term? Could South Australia run out of power? Average electricity demand in South Australia is 1.4 gigawatts, and the state record for peak demand of 3.4 gigawatts was set in January 2011. In the past two years the highest demand was 2.9 gigawatts. Rollout of rooftop solar panels is one of the reasons demand from the grid has been going down. The impact on the peak demand – the time of day when most people are using appliances – is less clear, because if the peak occurs after sunset, solar panels will not reduce it. Read More here
6 May 2016, The Guardian, Greg Hunt: no definite link between coal from Adani mine and climate change. The federal environment minister has argued in court that coal from Australia’s largest coalmine would have no “substantial” impact on climate change and as a result he did not need to consider whether it would affect the Great Barrier Reef. The Australian Conservation Foundation challenged Greg Hunt’s approval ofAdani’s Carmichael mine, alleging he failed to consider the impacts the burning of the coal from the mine would have on climate change and hence on the Great Barrier Reef. Scientists have found the current mass bleaching event affecting 93% of the reefwas made 175 times more likely by climate change and would become a biennial event within 20 years. After that point, the continued existence of the reef would be in doubt. In federal court documents obtained by Guardian Australia, Hunt denied he failed to consider the impacts of coal on the reef. In the outline of submissions filed on behalf of the minister, the Australian government solicitor explains that the minister did not think the burning of the coal “would be a substantial cause of climate change effects” and would have “no impact on matters of national environmental significance”. Read More here