Subject: Coal export market news Aug 20th
Pacific export coal market news remains uniformly pessimistic. Coal prices have been falling for the last year -- down 10% since Jan. 1 -- and no one is forecasting when they might rebound.
I read where one analyst (I forget which one) suggested that China may even begin exporting coal in the next year or two if trends continue. This opinion seems to be an outlier but indicative of the gradual re-evaluation taking place. Michael Lelyveld, below, writes how current Chinese energy demand is weaker than one might expect given headline GDP growth rates -- this could be because of slower than hoped for real growth or because the mix of industrial activity is shifting away from energy intensive industries many of which have excess capacity of 20% to 50%. China has had a record heatwave, but has not had any of the expected brownouts or shortages because declines in industrial demand have left so much spare capacity. Additional solvency problems beyond that in Shenmu surfaced in the Chinese coal industry: a large trader in Guanghzhou went bust with more than $1bn USD in unrecoverable debt and concern is growing around a number of coal industry financial trusts worth more than $4BN USD. These trust products are part of the ill-regulated "shadow market" and their prior failure and system of cross-guarantees triggered what has been called China's "subprime crisis" in Wenzhou. The limited production cuts announced so far in Australia do not seem to be enough to reassure major producers. The devaluation of Australian dollar is helping Australian coal to remain competitive despite becoming a lower margin producer over the last 3-4 years.
From Evernote:
Australian coal industry in final stage of grief
Source URL:http://www.smh.com.au/business/carbon-economy/australian-coal-industry-in-final-stage-of-grief-20130814-2rwfd.html
More worrying for producers is that the Newcastle price is now 44 per cent below its post-2008 recession high of $US136.30 a tonne, struck in January 2011. ...The problem for Australian miners is that at these prices many of them are struggling just to break even, and virtually no new project can proceed as the development costs exceed the potential revenue that can be earned. ... While longer term coal demand is slated to rise strongly on the back of new coal-fired power plants in China, India and elsewhere in Asia, for the foreseeable future coal prices are likely to remain relatively stagnant in real terms. This is because the cost of seaborne coal in Asia is largely being set by the cost of production in China, where imports meet around 6 per cent of total demand despite the nation being the world's largest importer. China's marginal cost of production for thermal coal is around $US80-$US100 a tonne, according to CLSA analyst Ian Roper. ...At current prices some 68 per cent of Australian thermal coal miners have a profit margin of less than $US10 a tonne, Sullivan told the Coaltrans conference. Furthermore, Australian producers have shifted higher along the cost curve than their global competitors in Indonesia, South Africa and elsewhere, with 66 per cent now falling into the second-highest quartile, up from only 34 per cent in 2006.
Yancoal Australia Posts Loss Amid Coal Glut
Source URL: http://online.wsj.com/article/SB10001424127887324747104579021671942078920.html
Yancoal Australia Posts Loss Amid Coal Glut - WSJ | Yancoal Australia Ltd. posted a first-half loss and said there is little sign that the global coal glut is easing. The downbeat outlook came as Yancoal named Reinhold Schmidt, a former executive at Glencore Xstrata, as the Australian company's chief executive. He succeeds Murray Bailey, who stepped down in March from the company, which is controlled by one of China's biggest coal producers. "For both metallurgical and thermal coal markets to return to balance, the market will require production cuts from some producers," Yancoal said Monday. "At this stage, there is no sign of any production cuts so the outlook remains weak." . . . .Thermal-coal prices in Australia are now below US$80 a ton—about half the level of coal's 2008 peak. A weakening of the Australian dollar has helped producers to some extent, but hasn't entirely offset the decline in prices, said Yancoal. The company operates coal mines in New South Wales and Queensland states and has been cutting costs by using fewer contractors.The Australian dollar fell 14% against the U.S. currency between mid-April and the end of June.
Glencore Xstrata hit by $7.7bn writedown
Source URL:http://www.telegraph.co.uk/finance/newsbysector/industry/mining/10253833/Glencore-Xstrata-hit-by-7.7bn-writedown.html
Glencore Xstrata, the FTSE 100 resource giant, wrote $7.7bn (£4.9bn) off the value of Xstrata in its first ever set of results as a combined company, throwing the merits of mining's biggest ever deal into question. The shares dropped more than 3pc following the writedown, which was at the top end of City forecasts. The stock later closed down 4.8, or 1.6pc, at 297.15p. The writedown followed the fall in commodity prices seen in recent months as the Chinese economy has cooled, souring sentiment towards the mining sector. The hit recorded was the difference between what the $44bn Glencore executives calculate that they paid for the effective takeover of Xstrata, which completed on May 3, and the $37bn value they put on it in their books that day.
Coal exports offend self-perception of liberal bourgeoisie in Pacific NW
Source URL:http://www.nytimes.com/2013/08/20/us/with-proposed-rail-expansion-northwest-confronts-its-clean-image.html?hpw
With Proposed Rail Expansion, Northwest Confronts Its Clean Image - Nytimes | The Pacific Northwest's sense of itself can sometimes seem green to the point of parody: a medium-roast blend of piney peaks and urban cool, populated by residents who look descended from lumberjacks or fishermen. Environmental activists like Bart Mihailovich say that trains already spill coal into waterways around Spokane, Wash. Now, plans by the energy industry to move increasing amounts of coal and oil through the region by rail, bound for Asia, are pulling at all the threads of that self-portrait. Last September, the first trains of crude oil from the Bakken fields in North Dakota began chugging through. Since then, energy companies have drafted proposals for new storage, handling and shipment capability almost equivalent to the controversial Keystone XL pipeline, which is facing a deeply uncertain path of federal regulatory approval. Mile-long trains from the coal mines of Wyoming already run daily, and the load could more than double if three big proposed export terminals gain approval and financing. The expected outrage has ensued.
Tokyo Electric Power doubles consumption of coal
Clipped from: http://www.japantimes.co.jp/news/2013/08/12/business/tepco-doubles-consumption-of-coal/#.UhOnmpLVDQI
Tepco doubles consumption of coal - Bloomberg | Tokyo Electric Power Co. nearly doubled its coal consumption in July from a year earlier after starting new power plants that use the cheaper fuel. The utility used 745,000 metric tons of coal last month, the most since at least April 2003, the earliest data available on Tepco's website. Crude oil consumption fell by about 18 percent while use of fuel oil dropped 30 percent, the figures show. Tepco, Japan's biggest power company by generation capacity, has been turning increasingly to coal since beginning test operations of two coal-fired power plants with a combined capacity of 1,600 megawatts in April. All 13 of its remaining nuclear reactors have been shut down since the 2011 Fukushima catastrophe, forcing it to rely on coal, oil and natural gas to meet demand.
Indonesian govt proposes limits on coal exports
Source URL:http://www.theborneopost.com/2013/07/31/govt-proposes-limits-for-coal-industry/
Govt proposes limits for coal industry - Borneo Post | The national government has announced plans to reduce coal production and renegotiate contracts with miners to prevent Indonesia's coal reserves from depleting to the extent that the country relies on imports of the energy source by 2050, Jakarta Globe reported news. Energy and Mineral Resources Deputy Minister Susilo Siswo Utomo said his ministry hoped to renegotiate contracts and investment and curb production so that future generations could benefit from the natural resource. "Capping production should not be translated as an effort to create problems for entrepreneurs. It's true that it will have impacts in the short term but we have to think about the future, put the state before [our own interests]," Susilo said in Balikpapan, East Kalimantan, on Tuesday. "Balance among production, exports and fulfilling domestic needs is required. We have to start discussions now on how much we can produce." Susilo said the country's vast natural resources should be a blessing and not create problems for local people. "Indonesia possesses many natural resources, from mining [sites], to oil and gas, to the sea to the sun. The only thing we don't have is a sense of unity as citizens of one country," he said. Susilo said the total coal reserves in Indonesia stood at an estimated 28 billion tons. Annual production stands at 400 million tons, of which 325 million to 330 million tons are exported, with China and India being the biggest importers. "We export 77 million tons per year to China and 75 million tons to India. But China's coal reserve is actually five times higher than Indonesia's while India's coal reserve is three to four times higher," Susilo said.
Working Hard, Day and Night, to increase the population in Mongolia. . .
Source URL:http://www.circleofblue.org/waternews/2013/commentary/editorial-in-the-circle-fresh-focus/a-wild-ride-through-mongolia-resource-boom/?utm_source=feedly
A Wild Ride Through Mongolia's Resource Boom - Circle of Blue | A huge country with a tiny population navigates the problems of modern development. ULAN BATOR — A hard rock and coal mining boom that really got rolling about a decade ago is literally leaving Mongolia's capital in the dust. ...Enkhtuya Oidou, the Nature Conservancy's Mongolia program director and an American-educated economist, told me today that Mongolia also lays claim to developing the world's first national park in 1778, under the country's religious leadership, to safeguard Bogd Khan mountain and the high forested mountain range that flanks Ulan Bator's southern boundary. Though history scholars in the U.S. could argue the point, that's still almost a century before Yellowstone National Park was established by Congress in 1872. Yellowstone is commonly regarded as the world's first national park. ...Orchibat Chuluunbat, the 55-year-old deputy minister for economic development and a veteran banker trained in the Soviet Union, said that mines and mine-related activity accounts for half of Mongolia's $10 billion annual economy, and half of the $4 billion national government's revenue. When I asked him about how much priority the government gives to managing the water used by the mines, Chuluunbat said that issue is gaining higher priority. He also said Mongolia needs to do a better job of quantifying national water supply, as well as water use by the mining industry. ...He closed by noting that Mongolia needs more people. "We work hard to increase the population," he said, smiling, "day…and night."
Coal ship sinks on way to China from S. Africa
Source URL:http://www.platts.com/latest-news/coal/london/capesize-coal-shipment-set-for-china-sinks-off-26198789
Capesize coal shipment set for China sinks off South Africa's Richards Bay - Platts | A Capesize ship carrying coal from Richards Bay Coal Terminal to China's Fangcheng port has run aground and partially sunk off South Africa's west coast while exiting the port due to adverse weather conditions and rough seas. South Africa's National Sea Rescue Institute (NSRI) said in a statement that the coal bulk cargo ship, the MV Smart, had been pushed into a shallow sand bank adjacent to RBCT's exit channel by 10 meter swells while heading out to sea Monday afternoon. Transnet National Port Authority also said in a statement that the vessel had experienced engine failure on leaving the port due to the adverse conditions, while no longer under TNPA pilotage. The TNPA had said late Monday that traffic from the 91 million mt/year RBCT was temporarily suspended until further notice due to the adverse weather conditions, but a spokesman told Platts Tuesday afternoon that the terminal was open and operating as normal. Sources said that the ship had been chartered by Chinese trader Minmetals and was carrying 5,500 kcal/kg NAR South African thermal coal bought from a Swiss trading house. Fangcheng is a key facility in southern China for imports from South Africa and Australia.
Coal Prices Darken China's Economy - Michael Lelyveld Analysis
Source URL:http://www.rfa.org/english/commentaries/energy_watch/coal-08192013104250.html
Coal Prices Darken China's Economy - RFA | An analysis by Michael Lelyveld A prolonged plunge in China's coal prices has created risks for the economy despite recent signs of improving growth. Average prices at the country's main Qinhuangdao coal port have fallen 10.7 percent since the start of the year, the official Xinhua news agency said. Prices had already dropped over 20 percent last year, according to the Bohai Rim Steam Coal Price Index, cited by state media reports. The slide from 800 yuan (U.S. $130.62) per ton at the start of 2012 to 565 yuan (U.S. $92.24) this month has dragged prices for China's main fuel to a five-year low. The decline may signal greater economic weakness than the official 7.5-percent growth rate in the second quarter, recorded by the National Bureau of Statistics (NBS). The price trend has also continued well into the third quarter, despite an NBS report showing stronger industrial output growth of 9.7 percent in July. Other: Deepening drop- ; Cheaper imports - ; Growing crisis -; The way forward -
Heatwave leads to simplified coal import procedures
Source URL:http://news.xinhuanet.com/english/china/2013-08/10/c_132619419.htm
Heatwave leads to simplified coal import procedures (Xinhua) -- East China's Ningbo Customs has simplified clearance procedures for thermal coal imports as a persistent heatwave is exacerbating the power crunch in the region, according to the General Administration of Customs (GAC).Ningbo Customs has opened a separate window dedicated to thermal coal in order to help speed up clearances, a GAC statement said.Meanwhile, customs tracks bulk cargo through prior declarations and discharges them immediately after they arrive on shore, which saves time for power plants, the statement said.The entire clearance process for thermal coal takes less than 24 hours, according to traders.Ningbo customs has released a total of 2.6 million tonnes of coal since June, according to customs data.Power consumption has increased in the region, with extra use of air conditioning units and longer trading hours at shops during the summer.China is the world's largest producer and consumer of coal, with official data showing the country's coal production reached 3.65 billion tonnes in 2012.
China's shift may mean coal's days are numbered
Source URL:http://www.cnbc.com/id/100971156
China's shift may mean coal's days are numbered - CNBC | China's renewal of its carbon reduction targets, as well as reports that it is clamping down on coal production, has led analysts to turn bearish on the outlook for coal, claiming that peak demand for the fossil-fuel could be behind us. Coal is used to generate 40 percent of the world's electricity, and its use has grown more than 50 percent in the past decade, according to the U.S. Energy Information Administration. But the fossil-fuel is well-known for its detrimental environmental impact, causing air pollution and carbon dioxide emissions that are strongly linked to global warming. China is responsible for 47 percent of global coal consumption—almost as much as the rest of the world combined, according to the International Energy Agency, and became a net importer in 2009. However, the new political regime in China, and its focus on a more consumer-led economy could bring change. "The world has become addicted to China's demand for coal," Paolo Coghe, European power, coal and carbon analyst at Societe Generale told CNBC. He warned that if the Chinese economy was slowing down, China could become a net exporter of coal, which would be very negative for prices. "Peak coal demand could be happening now, but we will have to see what happens next year. The effects will be seen in the next 3-5 years," Coghe said. ..."The window for thermal coal investment is closing," the commodities research team at Goldman Sachs, headed by Christian Lelong, said in a note on July 24. The bank downgraded its price forecasts for thermal coal, which is primarily used to generate heat, to US$83 per ton in 2014 and US$85/t in 2015, citing environmental regulations, competition from gas and renewable energy, and improvements in energy efficiency. The August futures price of thermal coal at Australia's Newcastle port, a regional benchmark for Asia, has fallen 17 percent this year, and closed near $78 a ton last week, its lowest in almost four years. The price is now 43 percent below its post-2008 recession high of $139.05 a ton, struck in January 2011. Coghe, whose price targets are similar Goldman Sachs's, said mines might cut production if coal prices are hit. "This could hurt Australia," he told CNBC, explaining that Australia had found economic success in supplying coal to a rapidly expanding China, but should have restricted production and investment in coal sooner.He added that the "only hope" for Australia's coal industry was in exporting to India.
China's coal output, sales decline
Source URL:http://www.globaltimes.cn/content/804877.shtml#.UhKEhpLVDQI
China's coal output, sales decline - Xinhua | China's coal output and sales both declined in the first seven months of 2013, statistics from the China National Coal Association (CNCA) showed on Monday. The country's coal output in the Jan.-July period stood at 2.13 billion tonnes, down 3.5 percent from the same period last year, while sales decreased 3.9 percent to 2.07 billion tonnes, according to the Association. Meanwhile, fixed asset investment in the coal mining industry declined 1.6 percent to 258.9 billion yuan, said CNCA vice president Jiang Zhimin in a news conference.In the first seven months, China imported a total of 187 million tonnes of coal, up 14.1 percent while exports declined 22 percent to 4.9 million tonnes, said Jiang. In the first six months, the net profit of the country's large- and medium-sized coal producers declined 43.3 percent from the same period last year, according to the CNCA. China is the world's largest producer and consumer of coal, with official data showing the country's coal production reached 3.66 billion tonnes in 2012.
Debt stress in raw materials - 100 mining trusts, 27bn rmb, 70 trusts due this year
Source URL:http://in.reuters.com/article/2013/08/13/china-commodities-debt-idINDEE97C0DF20130813
China slowdown exposes debt stress in raw materials - Reuters | China's slowing economy has hammered businesses supplying the raw materials for growth, with coal and aluminium firms at risk of defaults and closures after clocking up at least $490 billion of debt in a rush to expand. The debt mountain highlights the systemic threat posed by China's smokestack industries, which Beijing wants to slim down after a stimulus-fuelled investment boom launched in 2009. Some recent data has raised hopes that China's economy is stabilising, but growth has slowed for nine straight quarters, piling pressure on these sprawling sectors, just as China has pushed banks to tighten credit to companies. (more below)...The median debt-to-equity ratio of listed coal firms jumped 15 percentage points from a year ago to 55 percent, compared to 13 percent for Australian counterparts, according to Thomson Reuters data. Nine coal miners have raised a total of around 13 billion yuan from the domestic bond market this year, with six saying they would use more than half of the proceeds to pay down debt. ...In addition, aluminium and coal firms have raised huge sums via mining-related trust products since 2011.Trust funds, a lightly regulated market where money is channelled to a wide variety of investments, are an increasingly popular option for smaller firms struggling to get bank loans. But an extended slump could also lead to defaults in the trust sector. Chinese trust firms have set up nearly 100 mining-related trust funds, issuing a combined 27.3 billion yuan, according to data by industry portal www.Use-Trust.com. At least 70 mining trusts, which offer average returns of around 10 percent, are due to pay up by the end of 2013 and any defaults could send waves through the financial sector since many banks also have exposure to such assets. Huarong International Trust, which offers coal-related products, said it did thorough due diligence before issuing loans and require assets, such as mines, for collateral. But there have been problems and China Credit Trust Co, one of the biggest trust companies, has said its trust product was at risk of default after coal company Zhenfu Energy Group defaulted on a loan.
Guangdong Coal Co Closes w/ 9Bn Rmb in unpaid loans
Source URL:http://english.caixin.com/2013-08-15/100569981.html
Guangdong Coal Company Suspends Operations on Bad Debts - Caixin | Lanyue Energy Development sees massive loan burden exceed 9 billion yuan. A large private coal company in Guangdong Province has suspended operations with at least 9 billion yuan in unpaid loans owed to local banks. Bankers from the branches of China Construction Bank, Bank of China and several smaller banks said they had been forced to classify loans to Lanyue Energy Development Co. Ltd. as non-performing. The loans total more than 9 billion yuan. The company deals primarily with coal mining companies in Shanxi Province and the Inner Mongolia Autonomous Region. It also imports coal from Vietnam, Australia and Indonesia. Its clients range from power plants and papermaking mills to cement producers and steel manufacturing companies, most of which are in the Pearl River Delta, a major economic hub in southern Guangdong. By Tian Lin
China NDRC could lower electricity prices sooner than expected
Source URL:http://www.cnenergy.org/yw/201308/t20130817_238729.html
电价最早10月下调 发改委已做初步方案 - 中国能源报 | NDRC has taken initial steps that could lead to lowering electricity prices before year's end. Since coal prices have not recovered (and continue to decline) coal producers and many local govts think this is a good opportunity to reform electricity price system. Local gov'ts want lower electric prices to stimulate heavy industry and promote econ development -- and in coal mining regions officials are worried about supporting struggling coal companies. Acc. to one expert, coal's elasticity of demand is less than 50%; GDP growth of 7% leads to coal increase of 2-3% - so a lower price would help demand grow a little faster in what coal producer's see as China's new phase of moderated growth. Arguing for delay in lowering prices, the electricity industry bloc says coal is 70 percent of cost of electricity and over recent years the price of coal has been higher than electricity -- so electric companies need time to recoup losses inflicted by past policy. The have high debt ratios (gt 80 percent and over the SASAC warning line) and increasing environmental costs to carry.
Sinopec coal project gets state backing
Source URL:http://www.scmp.com/business/commodities/article/1297914/sinopec-coal-project-gets-state-backing
Sinopec coal project gets state backing despite of environmental concerns - SCMP | Sinopec Engineering, the plant construction arm of energy giant China Petrochemical, says orders for coal-to-chemical projects - its fastest-growing sales driver - are backed by the government despite carbon emissions and water scarcity concerns. "Our 101 billion yuan [HK$127.9 billion] of outstanding orders are backed by real contracts, and the projects have received various government approvals," said president Yan Shaochun. The company's net profit for the first half rose 10.8 per cent to 2.21 billion yuan. Since most of the mainland's coal resources are in the arid northern and northwestern regions, Yan said, the company was researching methods to cut pollution and water usage. He said present technology for converting methanol to chemicals was 9.5 per cent more efficient than the previous one. Methanol is the intermediate product in the conversion of coal into chemicals. Beijing is keen to use its ample coal resources to replace crude oil as a source of fuel and chemical feedstock. Mainland firms have successfully built projects to turn coal into liquid fuel and natural gas, although mass commercialisation is only beginning.The 101 billion yuan order backlog includes 29 billion yuan in coal chemical projects, 41 billion yuan crude oil-based petrochemical projects and 22.4 billion yuan oil refinery projects. The backlog increased by 33 per cent from the end of last year. First-half turnover grew 16.3 per cent from a year earlier to 19.6 billion yuan. Sales from the coal-to-chemicals segment jumped 65 per cent to 3.7 billion yuan. Yan said he expected the company to obtain the lion's share of a coal-to-natural gas conversion project, costing more than 200 billion yuan, led by its parent, China Petrochemical. A Citi research report said the project was being reviewed by the National Energy Administration, and orders were expected in next year's first quarter.
Climate change: Can China clean up fast enough? | The Economist
Source URL:http://www.economist.com/news/leaders/21583277-worlds-biggest-polluter-going-green-it-needs-speed-up-transition-can-china
Can China clean up fast enough? - The Economist | "HELL is a city much like London—a populous and a smoky city," wrote Percy Bysshe Shelley in 1819. It is a description that would suit many Chinese cities today for, like Britain in the early 19th century, China is going through an industrial-powered growth spurt. ...The muck that spews from Chinese factories most immediately affects those unlucky enough to live nearby. In January 2013 the air of Beijing hit a level of toxicity 40 times above what the World Health Organisation deems safe. A tenth of the country's farmland is poisoned with chemicals and heavy metals. Half of China's urban water supplies are unfit even to wash in, let alone drink. In the northern half of the country air pollution lops five-and-a-half years off the average life. All this has led to an explosion of protest across China, including among a middle class that has discovered nimbyism. That worries the government, which fears that environmental activism could become the foundation for more general political opposition. It is therefore dealing with pollution in two ways—suppression and mitigation. It has jailed environmental activists and is planning to limit the power of judicial oversight by handing a state-approved body a monopoly over bringing environmental lawsuits. At the same time, it is pouring money into cleaning up the country. It has just said that China will spend $275 billion over the next five years improving air quality—roughly the same as the GDP of Hong Kong, and twice the size of the annual defence budget. Even by Chinese standards it is a massive sum.
2GW China coal plant shelved over pollution concerns
Source URL:http://reneweconomy.com.au/2013/huge-china-coal-plant-shelved-over-pollution-concerns-47033
Huge China coal plant shelved over pollution concerns | ... First, let's put this in perspective. In Europe or the U.S., a huge 2,000-megawatt coal power project (roughly the size of four average U.S. coal plants) next to a megacity of 10 million, would top the list of polluting power plant proposals and attract intense scrutiny. In China, which has continued to add an equivalent amount of capacity every few weeks, permitting a project like this half a year ago was still business as usual. It's what happened after the projects preparatory work got underway that bent the arc of history in China. The 2,000-megawatt power plant was planned on the coast of South China Sea, 50 kilometers from the megacities of Shenzhen, population 10 million, and Hong Kong, population 7 million. Greenpeace estimated that the new power plant would cause 1,700 premature deaths over its operating life, despite being fitted with state-of-the-art SO2, NOx and particulate filters.
China Takes a Keen Interest in Water-Energy Connections
Source URL:http://www.circleofblue.org/waternews/2013/commentary/editorial-in-the-circle-fresh-focus/china-takes-a-keen-interest-in-water-energy-connections/
China Takes a Keen Interest in Water-Energy Connections - Circle of Blue Keith Schneider | ...While introducing more than a dozen of his colleagues, Zhang Yongsheng, a senior research fellow and the deputy director general of a department in the Development Research Center, explained how the coal sector, which uses a fifth of the country's fresh water, is being buffeted by drying conditions. Zhang said the contest for the two resources was a focus of research and policy development that is steadily elevating in priority in the central government. ... Jia Yangwen, a vice director in the Institute of Water Resources and Hydropower Research, presented conclusions from his new research paper that confirmed our 2011 Choke Point: China data and went several steps further. Jia's paper calculated that by 2030, the water supply for northern China's coal-producing provinces would be short by 100 billion cubic meters of water annually.
Beijing's neighbours hesitate at pollution cuts
Source URL:http://www.chinadialogue.net/article/show/single/en/6279-Beijing-s-neighbours-hesitate-at-pollution-cuts
Beijing's neighbours hesitate at pollution cuts - China Dialogue | 09.08.2013 | A smog-plagued Beijing is showing more determination than ever to control coal burning, but for nearby provincial governments large cuts in energy consumption may be a step too far. The recent announcement of plans to lower air pollution levels in the next five years are far greater than any proposed before, some being several times tougher than those included in the 12th Five Year Plan (FYP) period, which was only finalised in 2012....Beijing started controlling coal use in 2011, and in 2012 said that it would aim to cut consumption to 15 million tonnes a year, compared to the 20 million tonnes goal in its 12th FYP. Beijing can afford to be confident. It has four pipelines from Shaanxi to ensure Beijingers have access to natural gas from the north-west, supplying both energy and winter heat. ...And after years of efforts, Beijing has relocated its power-hungry industries and mostly replaced coal use with natural gas. The MEP gave a plan for dealing with air pollution in Hebei to the provincial government for comment. By 2017, the province was to have reduced coal consumption by 100 million tonnes (of raw coal) on 2010 levels. ...ent wrote to the MEP, requesting that given the province's economic circumstances it be allowed to cut consumption by only 25 million tonnes of standard coal, or about 35 million tonnes of raw coal. That would put consumption in 2017 at about 315 million tonnes.
Wuhai City Coal Complex Shows Costs of China's Energy Demands
Source URL:http://www.newsecuritybeat.org/2013/08/photo-essay-wuhai-city-coal-complex-shows-costs-chinas-energy-demands/#.UgvNo5LVDQI
CHOKE POINT: Photo Essay: Wuhai City Coal Complex Shows Costs of China's Energy Demands - New Security Beat | The black, blasted landscape of Wuhai City sometimes looks more like the moon than Inner Mongolia. But this scene is becoming all too common across much of Northern China. China's massive coal industry is not only polluting the air and water, but also fundamentally altering the surrounding landscape and communities. By 2020, coal consumption in China is projected to increase by 30 percent, and already, 20 percent of water withdrawn in the country goes to coal mining, processing, and cooling of coal-fired power plants. The water intensity of the coal industry is a significant quandary for a country that is already facing a water scarcity crisis (water availability per capita is one-quarter the global average). The situation is exacerbated by the geographic mismatch between China's coal and water reserves. Like Wuhai, most of China's coal bases are located in the water-stressed northwest region, but most of the water is in the south. For instance, Inner Mongolia holds 26 percent of China's coal reserves but only 1.6 percent of its water. How will the government deal with this water-energy choke point, as it seeks to feed the growing appetite of the world's second-largest economy?