MINEX Forum

Tag: Energy Transition

  • UN Expert Panel Issues Guidelines for Just and Equitable Energy Transition

    UN Expert Panel Issues Guidelines for Just and Equitable Energy Transition

    A United Nations panel of experts has published a comprehensive set of recommendations and guidelines for governments and mining companies aimed at safeguarding human rights, justice, and equity during the global race for energy transition minerals. The report, titled Resourcing the Energy Transition: Principles to Guide Critical Energy Transition Minerals towards Equity and Justice, outlines ways to ensure that the shift to renewable energy promotes sustainable development, protects the environment, and fosters prosperity in resource-rich developing nations.

    UN Secretary-General António Guterres, who convened the panel in April, emphasized that the report acts as a “how-to guide” for generating both prosperity and equality alongside clean energy, noting the critical timing as demand for minerals is projected to nearly triple by 2030. Among the panel’s key proposals are the establishment of a UN expert advisory group to facilitate policy dialogue on mineral value chains, a global transparency and accountability framework, and the creation of a fund to address issues stemming from abandoned or derelict mines.

    The report also highlights the need to empower artisanal and small-scale miners as agents of change, promoting environmental protection and human rights. It stresses the importance of enhancing material efficiency and supporting the role of the UN as a neutral convener in achieving the goals of the Paris Agreement. The Secretary-General has instructed the panel to present its findings to member states and other stakeholders ahead of the COP29 conference later this year.

  • Poland to Revise Coal Asset Spin-off Plans Amid Energy Transition Struggles

    Poland to Revise Coal Asset Spin-off Plans Amid Energy Transition Struggles

    Poland, the European Union’s most coal-dependent nation, is looking to revise its plans to separate coal assets from state utilities, according to Jakub Jaworowski, the Minister of State Assets. The country’s energy transition has faced challenges, with the previous government failing to finalize the creation of a new entity, known as NABE, to handle coal assets. Jaworowski described the NABE plan as a “nuclear option” and hinted at the possibility of alternative approaches without specifying details.

    Last week, shares of major utilities like PGE SA, Tauron Polska Energia SA, and Enea SA fell by as much as 7%following Finance Minister Andrzej Domanski’s statement that the next year’s budget has no provisions for the NABE spin-off. However, Jaworowski stressed that resolving the issue remains a priority for the current administration. He emphasized the need for a well-thought-out plan rather than rushing the process.

    Poland’s energy transition, estimated to cost over $300 billion, is reliant on external financing, but environmental concerns are making banks hesitant to participate. With more than 60% of Poland’s electricity coming from coal-fired plants, the government faces the challenge of balancing power demand, costs, environmental considerations, and the needs of affected communities and workers. Jaworowski acknowledged that coal plants will eventually be phased out but stressed the importance of finding the right timeline.

  • A 150-Year-Old Lithium Discovery in Cornwall Could Revolutionize the Energy Industry

    A 150-Year-Old Lithium Discovery in Cornwall Could Revolutionize the Energy Industry

    A groundbreaking discovery made 150 years ago in Cornwall, UK, is making headlines again. Back in the 19th century, a large amount of dissolved lithium was found in a hot spring approximately 450 meters underground. At the time, this mineral had little to no value, and its potential was largely ignored. However, in today’s world, where lithium is more valuable than petrol, this discovery is proving to be a game-changer.

    The geothermal lithium deposit found in Cornwall is now recognized as one of the largest in the world. The underground hot springs contain an astonishing concentration of lithium, ranging from 8 to 10 times higher than that found in other hot springs currently being exploited. This mineral has become crucial in the energy transition, as it is a key component in the manufacturing of batteries for electric cars, mobile phones, and computers.

    Interest in this geothermal lithium deposit resurfaced in autumn 2020 due to its significance in the modern energy landscape. Unlike conventional lithium, which is extracted from brine deposits in dry lake beds or hard rock mines, geothermal lithium is found in a hot, saline brine that passes through heated rocks, absorbing various elements including potassium, boron, and lithium.

    Mining companies such as Cornish Lithium and Geothermal Engineering are at the forefront of exploring and exploiting this valuable resource. They plan to use cutting-edge techniques like Direct Lithium Extraction (DLE), a method developed by companies in Germany, the United States, and New Zealand. This process uses ion exchange resin or nanofiltration techniques to selectively extract lithium chloride from the brine, which is then treated to produce lithium hydroxide, a key material for battery production.

    This method of lithium extraction is not only more sustainable and environmentally friendly but also has a significantly lower carbon footprint compared to traditional methods. While conventional lithium extraction, primarily from Argentina, Chile, and Australia, remains cheaper, it comes with substantial environmental costs. For every tonne of lithium produced using conventional methods, more than 15 tonnes of greenhouse gases are emitted, vast amounts of water are permanently polluted, and large tracts of land are disturbed.

    In conclusion, the once-overlooked lithium deposit in Cornwall is now recognized as a mineral resource far more valuable than oil. Its extraction using sustainable methods could play a pivotal role in the global shift towards cleaner energy.

  • Romania Plans to Phase Out Coal Power Plants by 2026

    Romania Plans to Phase Out Coal Power Plants by 2026

    Transelectrica reportedly doesn’t see coal power plants having any share in Romania’s transmission system in 2026and beyond. The official phaseout deadline is 2032.

    Romania’s electricity transmission system operator Transelectrica is working on a ten-year plan through 2033. According to media reports, the draft shows coal power gone already in 2026. A similar announcement has just emerged in Greece, while Bulgaria is struggling even to keep its sole state-owned facility online.

    Until a few years ago, the three countries were hesitating to determine coal phaseout dates or delaying them. Now even newer or reconstructed plants of the kind across Europe are reducing capacity utilization or abruptly shutting down. For instance, the ContourGlobal Maritsa East 3 coal-fired power plant in Bulgaria recently fired almost all its employees.

    Expenses are high because of the allowances that producers must buy via the European Union’s Emissions Trading System (EU ETS). They also face ever stricter environmental requirements, making coal power uncompetitive.

    On the other hand, an uncontrolled collapse of the sector could jeopardize the security of energy supply. The rapid cut in coal power capacities makes the region’s energy consumers vulnerable to cold spells in the winter.

    Romania leans on gas power to cover the 2026 coal exit. The market has decimated coal plant production. In Romania in particular, it is evident from the forced transformation of state-owned coal miner and power plant operator Complexul Energetic Oltenia (CE Oltenia).

    Active coal plants had an overall 1.9 GW in April, compared to 5.3 GW in 2012. CE Oltenia plans to replace them with gas power facilities in Ișalnița and Turceni by 2026. With projects of other Romanian energy companies like Electrocentrale Bucharest (ELCEN), the new capacity is seen at 4.5 GW.

    Romania is officially planning to complete its coal phaseout in 2032.

    Minister of Energy Sebastian Burduja recently said Transelectrica’s report would determine the parts of the national electricity system that are in deficit. The last heat wave disturbed the wholesale trade in the region and catapulted power prices.

    Burduja insisted that the situation would have been much worse without renewables. The authorities want to eliminate coal by 2026 because Romania will double its interconnection capacity with neighboring countries to 7 GW next year, according to Radu Miruță, a member of parliament from the opposition Save Romania Union (USR) and its head in Gorj county, a major coal hub. The country is upgrading the interconnections to buy, not to sell, in Miruță’s view.

    The fate of coal industry workers and entire communities hangs in the balance. The implications are serious for national economies as well. The European Union’s just transition programs seem to need a boost.

  • German Chancellor Olaf Scholz to Visit Serbia for Crucial Lithium Supply Agreement

    German Chancellor Olaf Scholz to Visit Serbia for Crucial Lithium Supply Agreement

    German Chancellor Olaf Scholz is set to visit Serbia this week to negotiate a critical agreement for the supply of lithium, essential for Germany’s energy transition and auto industry. According to sources familiar with the matter, Scholz is expected to be in Belgrade on Friday to sign the agreement with Serbian President Aleksandar Vucic and other cabinet ministers. While the details of the visit remain unconfirmed, the German government and the Serbian administration have not commented on the matter.

    Serbian Infrastructure Minister Goran Vesic mentioned that Serbia intends to collaborate closely with European Unionmember states on potential lithium extraction but did not verify Scholz’s visit. Vesic emphasized Serbia’s aspirations to join the EU and its willingness to cooperate on various issues with EU partners.

    This potential deal follows a significant ruling by Serbia’s top court, which overturned a 2022 government decision to halt a $2.4 billion lithium project by Rio Tinto Group due to environmental concerns. This project, if realized, would be Europe’s largest lithium mine, with an estimated annual production of 58,000 tons of lithium. However, operations are not expected to commence before 2028, pending firm environmental protection measures.

    The European Union’s dependency on imported lithium was a major concern addressed in recent legislation aimed at securing supplies of critical minerals. Despite this, progress has been limited to general agreements with allies like Australia, and critics argue that more direct funding is necessary to support developers amid a downturn in battery-metal markets.

    The agreement between Serbia and Germany, the EU’s largest economy, comes as Serbia continues its efforts to join the EU. The lithium supply from Serbia would significantly aid Germany’s plans to reduce reliance on gas and coal and to advance the electrification of its automotive industry. In addition to international projects, Germany is also exploring domestic lithium extraction through startups like Vulcan Energy Resources Ltd.

  • EU Urged to Establish Independent Pricing for Critical Minerals

    EU Urged to Establish Independent Pricing for Critical Minerals

    The head of an EU-funded group has called for a European system to set prices for critical minerals essential for the energy transition, independent of China’s influence. Bernd Schaefer, CEO of EIT RawMaterials, emphasized the need for a pricing mechanism that reflects the supply and demand within Europe, rather than being susceptible to China’s market decisions.

    Western start-ups are struggling with oversupply and weak prices of materials like lithium, cobalt, and rare earths, which are impacting their cash flows and ability to compete with China. “Europe should have a critical materials platform that has a price-building mechanism that reflects the supply and demand situation in Europe,” Schaefer told Reuters at the World Materials Forum in Paris.

    Schaefer also advocated for the creation of an exploration fund to enhance the mining of critical minerals in Europe, suggesting a substantial investment, “This should not be just a couple of million (euros), it should be a billion, it must be a big number.”

    EIT RawMaterials, an alliance of over 300 companies and academics, is instrumental in executing the EU plan to secure raw materials necessary to achieve net zero greenhouse gas emissions by 2050. The EU Critical Raw Materials Act, effective since May, sets ambitious targets for the mining, recycling, and processing of minerals like lithium and copper by 2030.

    Schaefer warned that political uncertainty could hinder progress towards these targets, citing recent elections in France, the European Parliament, and instability in Germany. “This discussion is in limbo. We are in a period of transition within the Commission and within Europe,” he noted. “We might be losing time, but we cannot afford to lose time.”

    As a neutral, non-political entity, EIT RawMaterials could play a pivotal role in driving the necessary changes, Schaefer added.

  • LEAG Plans Construction of Hydrogen-Ready Gas Power Plant in Eastern Germany

    LEAG Plans Construction of Hydrogen-Ready Gas Power Plant in Eastern Germany

    LEAG, the largest lignite mine operator in Eastern Germany, has announced plans to construct one of Germany’s inaugural hydrogen-ready gas power plants. Boasting a capacity of 870 megawatts (MW), the proposed gas turbine power plant could see construction commencing as early as 2025, pending specific tender criteria outlined in the government’s power plant strategy and EU agreement on state support.

    The move towards hydrogen-ready gas plants is pivotal in ensuring electricity supply security amid the escalating share of intermittent renewable energy sources and the looming phase-out of coal by 2038. LEAG envisions a six-year construction timeline for the gas power plant, situated in the Schwarze Pumpe industrial park, with an anticipated grid connection by 2030. Leveraging existing access to the natural gas grid, the plant is slated to integrate into Germany’s future hydrogen core network.

    LEAG’s initiative aligns with its broader strategy of transitioning towards renewable energies in the Lusatia coal-mining region. The recent approval of Germany’s power plant strategy aims to establish an investment-friendly framework for new hydrogen-ready gas-fired power plants. Despite the imperative role of such plants in intermittent operation scenarios, their construction faces financial challenges due to high fuel costs, necessitating governmental support.

    While LEAG’s proposal signals progress, a recent report highlights Germany’s sluggish pace in implementing hydrogen plans, with current production facilities totaling only 0.3 gigawatts (GW) against a 2030 target of 10 GW. Bridging this gap remains critical for Germany’s energy transition ambitions.

  • Central Asia’s Geological Resources Poised for Global Impact

    Central Asia’s Geological Resources Poised for Global Impact

    Recent developments in geological resource exploration have brought Central Asia to the forefront of global attention. With abundant mineral deposits lying beneath its surface, the region is set to play a pivotal role in the economic and geopolitical landscape. Nations like Kazakhstan and Uzbekistan, long overlooked on the international stage, are now emerging as key players in the supply chain for critical raw materials crucial for the energy transition. The United States has notably extended support to facilitate mineral development in these countries, recognizing their significance in the global shift towards cleaner energy technologies. Rare earth elements, vital components across various industries, have been unearthed in substantial quantities, positioning Central Asia as a crucial hub for future resource extraction. Collaborative efforts between Central Asian governments and organizations like the United States Geological Survey are underway to map out and exploit these diverse mineral deposits. While Kazakhstan leads the region in rare earth reserves, other nations like Tajikistan and Uzbekistan are yet to fully explore and harness their geological potential.

  • Poland Shifts Strategy, Mulls Merging Coal-Fired Power Plants with Mines

    Poland Shifts Strategy, Mulls Merging Coal-Fired Power Plants with Mines

    The Polish government has announced a departure from its initial plan to segregate coal-fired power plants into a distinct entity, opting instead to explore the possibility of merging them with coal mines. Industry Minister Marzena Czarnecka revealed this shift in strategy in an interview published by Rzeczpospolita daily on Wednesday. The prior administration had proposed the formation of a single large state-owned company, NABE, to consolidate the assets of coal-based power plants. However, Minister Czarnecka expressed reservations about this approach, citing concerns over transferring the burden of coal assets onto taxpayers. She asserted that the NABE project would not proceed as envisioned. Exploring alternatives, Czarnecka indicated that discussions are underway to link coal-fired power plants directly with mines. The ministry plans to engage with financial institutions to devise an optimal model that facilitates financing for the green transformation of energy groups. Emphasizing the necessity of aligning specific power plants with corresponding mines, Czarnecka outlined a timeline for the proposed plan, aiming to finalize arrangements by the end of the year.

  • Euro Manganese’s Chvaletice Project Positioned to Support EU’s Critical Raw Materials Act

    Euro Manganese’s Chvaletice Project Positioned to Support EU’s Critical Raw Materials Act

    Euro Manganese Inc. issued follow-up remarks today regarding the European Commission’s recently approved Critical Raw Materials Act (CRMA), aimed at ensuring a sustainable supply of essential materials for the energy transition. With the Council of the EU granting final endorsement to the CRMA, Euro Manganese’s Chvaletice Manganese Project in the Czech Republic emerges as a pivotal asset, poised to become the sole European source of high-purity manganese crucial for the battery supply chain. The Act, officially adopted on March 18, 2024, identifies high-purity manganese as a strategic raw material vital for Europe’s decarbonization objectives and defense applications, while also designating manganese as a critical raw material due to its economic importance and supply risk. Dr. Matthew James, President & CEO of Euro Manganese, hailed the EU’s approval of the CRMA as a significant step towards securing critical materials for the energy transition, underscoring the potential of the Chvaletice Project to address these needs.