MINEX Forum

Tag: Coal Phase-Out

  • Final UK Coal-Fired Power Station Set to Close in September

    Final UK Coal-Fired Power Station Set to Close in September

    The Ratcliffe-on-Soar power station, the last remaining coal-fired power station in the UK, is scheduled to shut down on 30th September after receiving its final coal shipment in late June. This marks the end of coal-fired power generation in the UK, a sector that once contributed over a third of the nation’s electricity supply.

    The closure is part of a broader initiative to phase out coal as the country strives to meet its carbon reduction goals. Plans are already in place to transform the site into a zero-carbon technology and energy hub. The company overseeing the facility announced that it aims to produce low carbon hydrogen, targeting 500MW in electrolysis capacity by the end of the decade.

    The UK’s reliance on coal has drastically reduced over the years, plummeting from more than 95% of electricity generation at the start of the 20th century to just 1% by 2023. The government’s target to eliminate coal-based energy production by 2024 aligns with the closure of the Ratcliffe station. Opened in 1967, the power plant has had the capacity to generate electricity for over two million homes and, over its 57 years of operation, produced enough energy to power the making of more than 21 trillion cups of tea.

  • Leag Secures €1.75 Billion for Early Coal Phase-Out in Eastern Germany

    Leag Secures €1.75 Billion for Early Coal Phase-Out in Eastern Germany

    Eastern German lignite mining and power plant company Leag has received approval for up to 1.75 billion euros in state support to facilitate the “early” phase-out of coal-fired power production in eastern Germany. This follows an agreement between the European Commission and the German government, confirming that the compensation payment aligns with EU subsidy regulations. The funds will help Leag transition from fossil fuels and create new jobs in the Lusatia region ahead of the coal exit’s final deadline in 2038.

    The Commission’s decision came after a review that started in 2021, prompted by local policymakers and the German government. “This is an important step for the people in this region,” said Germany’s economy minister Robert Habeck. The compensation will fund social support programs for coal workers and the restoration of former mining areas.

    Habeck emphasized that the payments to Leag are part of broader government measures to support the region’s shift to climate-neutral energy generation and industrial production. With targeted support for innovative transformation technologies, the government aims to foster a thriving economy in Lusatia. Leag CEO Thorsten Kramer welcomed the agreement, calling it “an essential element for our further successful transformation to being a green powerhouse.”

    The deal with the Commission and the initial plan from Germany’s previous government includes a gradual release of the funds. The estimated cost of phasing out coal is around 1.2 billion euros, which Leag will receive as a minimum. Additional funds of up to 550 million euros depend on the potential profitability of closed coal plants and the foregone profits due to the phase-out. The economy ministry stated that this process ensures Leag is not “overcompensated” for its role in the coal phase-out.

    Assessing Leag’s compensation was more complex than for its western counterpart RWE, which agreed to close its plants well before the 2038 deadline. The Commission will continue to review the scheme and release a formal decision in the coming months.

    Christian Ehler, from the conservative Christian Democrats (CDU) representing the region in the European Parliament, said the agreement brings clarity after three years of negotiations. “Leag can continue on its path of renewable power, hydrogen-ready power plants, and energy storage,” Ehler said. He added that the decision shows “the EU isn’t abandoning East Germany,” marking a milestone in Lusatia’s ambition to become Europe’s first Net Zero Valley.

    The agreement did not specify an end date for coal before 2038. However, Bernhard Herrmann, a member of the government committee for climate and energy from the Green Party, noted that the expansion of renewables will naturally phase out coal plants as they become less profitable. He argued that the deal would reduce taxpayers’ costs for the phase-out, with coal companies likely to take their plants offline voluntarily due to decreasing profitability.

  • Resistance to EU Coal Phase-Out Evident in Bulgarian Mining Village

    Resistance to EU Coal Phase-Out Evident in Bulgarian Mining Village

    In Beli Bryag, a Bulgarian mining village already displaced for an open-pit mine, opposition to the European Union’s coal phase-out is palpable. Despite significant community displacement to make room for the mine’s expansion, Bulgaria’s commitment to exit coal by 2040 aligns with EU aims for carbon neutrality by midcentury. However, for residents like Beli Bryag Mayor Ivelina Dimcheva, the situation is dire, especially with uncertainty looming over the mine’s longevity. The resistance to the Green Deal underscores broader concerns in coal-dependent Bulgaria ahead of both European parliamentary and national elections. Stanimir Georgiev, a veteran miner, voices discontent, organizing protests against what he perceives as a threat to livelihoods posed by the EU’s environmental policies.

  • G7 Nations Set 2035 Deadline to End Unabated Coal Use

    G7 Nations Set 2035 Deadline to End Unabated Coal Use

    In a significant move towards combating climate change, the Group of Seven (G7) nations declared on Tuesday their commitment to terminating the use of “unabated” coal by 2035. This resolution, reached after deliberations among energy, climate, and environment ministers in Turin, Italy, marks a breakthrough in G7 negotiations that had previously stalled over several years. The communiqué released following the talks stipulates the intention to “phase out existing unabated coal power generation in our energy systems during the first half of 2030s.” However, by specifying “unabated” coal, the agreement offers flexibility for countries to continue employing this fossil fuel post-2035 if they implement measures to capture carbon emissions before release into the atmosphere. Furthermore, the accord allows countries the option to adopt a timeline aligned with maintaining a limit of 1.5°C temperature rise, in accordance with their net-zero pathways. Several G7 members, representing major economies in the developed world, have made substantial progress in reducing coal dependency. Notably, the UK, Italy, and Canada generate less than 6% of their electricity from coal, while France relies minimally on it. Conversely, coal still constitutes a significant portion of electricity generation in Japan (32%), Germany (27%), and the US (16%), according to data from the think tank Ember. This announcement follows closely on the heels of the US Environmental Protection Agency’s unveiling of new regulations mandating coal-fired power plants to either capture the majority of their climate pollutants or cease operations by 2039. Italian Environment and Energy Security Minister Gilberto Pichetto Fratin defended the agreement, emphasizing that the language assures a phased reduction of coal usage across G7 nations while safeguarding economic and social stability. Although some climate experts view the agreement positively as a step forward after years of impasse, others criticize the 2035 deadline as insufficient for limiting global warming to 1.5 degrees Celsius. Climate Analytics contends that to achieve this goal, all coal usage in G7 countries must cease by 2030 at the latest, with natural gas use ending by 2035. Jane Ellis, head of climate policy at Climate Analytics, underscores the necessity for a swifter transition to renewables, particularly highlighting concerns regarding ongoing investments in domestic gas facilities by G7 governments. Notably, while the resolution addresses coal, it omits any mention of a phase-out plan for gas, despite its significant contribution to CO2 emissions. The G7’s leadership in climate policy often influences broader international efforts, including those within the G20, where decisions impact major emitters and fossil fuel producers alike.

  • Macron announces French strategy for climate action, wants more EU funds

    Macron announces French strategy for climate action, wants more EU funds

    President Emmanuel Macron of France declared on Monday that the country will completely phase out coal by 2027. In addition, he emphasized the need for increased climate funding from Europe.

    Macron stressed the importance of European investment in the ecological transition, stating that mere regulation without substantial investment would not suffice for a genuine European decarbonization strategy.

    For months now, the French government has been diligently formulating its strategy in this realm. The objective is to achieve an annual reduction in greenhouse gas emissions of approximately 5% in order to meet the European target of reducing emissions by 55% by 2030 compared to 1990 levels.

    Macron called upon the European Commission to allocate more funding towards climate transition in order to attain these targets.

    France has already allocated €40 billion for climate action in 2024, which is €7 billion more than the previous year.

    This budget will be incorporated in the Finance Bill, which is slated to be presented to the Council of Ministers on Wednesday, followed by debates in the French Parliament.

    Macron also outlined several forthcoming significant measures, including the complete phase-out of coal in France “by January 1, 2027.”

    “This is the priority we have set for our nation, and it is one that we will advocate for in Europe and across the globe,” he asserted. Macron described it as a “French-style ecology” that does not entertain the idea of reopening coal-fired power plants, unlike Germany.

    In reality, France currently operates two coal-fired power plants, with one being reopened in 2022 as a response to the energy crisis.

    Furthermore, Macron revised his stance on phasing out gas-fired boilers, opting instead for a policy that encourages the installation of heat pumps. He expressed plans to produce one million heat pumps in France by 2027.

    In Germany, Great Britain, and the Netherlands, governments have also reconsidered their ban on gas-fired boilers, as they fear potential social unrest.

    Regarding transportation, Macron reiterated the goal of producing one million electric cars in France by 2027. To achieve this, he intends to initiate a comprehensive assessment of France’s mining resources.

    In terms of industry, Macron explained that in October, they will be able to announce electricity prices that are both competitive and conducive to maintaining the competitiveness of households and industrial customers.

    Macron expressed his reluctance to “wait” for the ongoing negotiations regarding the reform of the EU electricity market design in order to ensure that the French population does not have to pay exorbitant prices for electricity, thanks to the country’s reliance on nuclear power.

    The proposed timeline coincides with the upcoming EU Energy Council meeting on October 17, which holds significant importance for the future of the EU electricity market design.

    At present, France continues to advocate for the inclusion of existing nuclear assets within the market design framework, a point of contention with Germany and its allies.