NEWS
Coal   Industry  

Trump gift to coal industry won’t halt decline – report

A Federal Energy Regulatory Commission report shows the total available installed generating capacity of coal stood at 257.5 gigawatts (slightly less than renewable energy sources for the first time US history).

According to BloombergNEF another 41GW are slated for retirement and a further 105GW of capacity is deemed at risk of closure.

US president Donald Trump has done his utmost to make good on promises to ease restrictions on coal power since taking office and earlier this month the Environmental Protection Agency gave the industry another boost with a new set of rules that make it easy and cheap to comply with what’s left of Obama-era regulations.

But a new report suggest the rewritten Affordable Clean Energy (ACE) rules will do little to stem the decline of the industry.

Moody’s Investors Service says while the rules are credit positive for merchant coal generators because the “investments required to comply are minimal,” coal-fired plants will continue to be less economical than natural gas powered generators:

We project natural gas prices to remain within a band of $2.50 per one
million British Thermal Units (MMBtu) to $3.50/MMBtu and more likely on the lower end because of the abundant US supplies of natural gas from shale, along with rapidly increasing associated gas from shale oil production.

Additionally, coal-fired generation faces substitution risk from renewables such as wind, solar and battery storage as technology improvements have dramatically increased their cost competitiveness.

The ACE rule does not mitigate any of these overarching market trends that are creating strong headwinds for merchant coal generators nor does it address the impact of changing consumer preferences which appears to be supportive of using sustainable, lower carbon-emitting generating resources.

Finally, says Moody’s, just like Clean Power Plan (CPP) passed by the Obama administration, the ACE provisions could be legally challenged and eventually repealed.

News No: 4926
Date: 2019/06/28 - 20:44
News Source: MINING.COM

Trump gift  coal  industry  renewable energy  US 

Comments:

Leave a Comment:

   
   
   
 

Europe’s largest lithium project could be up and running mid-2022 -EMH

European Metals Holdings could begin operations at its Cinovec lithium project in the Czech Republic by mid-2022, and is holding preliminary discussions with potential customers, it said on Monday.
 

Serabi Gold moving forward with permitting third Brazilian mine, keeps guidance

Brazil-focused Serabi Gold (LON,TSX: SBI) said Monday it remained on track to produce between 40,000 and 44,000 ounces of the precious metal this year from its Palito and Sao Chico mines in the country’s north, almost 19% more than the 37,108 ounces it churned out last year.
 

Guinea seeks developers for Simandou iron ore deposit

Guinea has launched an international tender for blocks 1 and 2 of Simandou, giving companies until Aug. 2 to outline their bids, as the country seeks to revive interest in the world’s largest undeveloped iron ore deposit.
 

JCPOA Joint Commission meeting scheduled for July 28: Iran Foreign Ministry

Iran's Foreign Ministry spokesman says an urgent meeting of the Joint Commission on the implementation of the Iran nuclear deal will be held at the level of political deputies and directors in the Austrian capital city of Vienna in late July.
 

Domestic manufacturing of imported auto parts to be strengthened

In mid-May, Iranian Industry, Mining and Trade Minister Reza Rahmani issued a directive on “strengthening domestic manufacturing of imported auto parts”.
 

Over 6,500 stone processing units operating across Iran

Director General of Mineral Industries Office of the Ministry of Industry, Mining and Trade Seifollah Amiri said over 6500 stone processing units are currently active across the country, 500 of which are exporting to global markets.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners