Displaying items by tag: Coal

Egypt: An independent local coalition called Egyptians Against Coal (EAC) aims to advocate excluding coal use from Egypt's energy and cement industry by 2017 due to its 'hazardous environmental threats,' according to a statement from the group released on 10 November 2015.

In mid-September 2015, the Ministry of Environment approved studies made by seven cement factories to use coal in their production process instead of natural gas. The factories include those of LafargeHolcim, Suez Cement (Italcementi) and Arabian Cement, among others.

Suez Cement has announced that it plans to convert two more of its plants to use alternative energy sources, at a total cost of US$37 - 50m each. The company is aiming to convert the Tora and Helwan plants to use coal and a heavy fuel oil known as mazut, following in the footsteps of the Kattameya and Suez plants in the last few months.

During a meeting, the EAC discussed potential ways to raise awareness and advocacy on both the level of individuals and decision makers. The initiative brings together researchers, economists, lawyers, as well as journalists who are interested in environmental issues.

"We are about to issue a booklet that illustrates everything related to coal use and another booklet about alternative energy resources to produce clean energy," said Amena Sharaf, a researcher at the Egyptian Centre for Economic and Social Rights (ECESR).

According to the EAC, coal use in some factories caused severe harm for its labour force and their families living nearby. It claims that workers 'do not know about friendlier energy alternatives that could be used.'

The use of coal in Egypt raised many concerns on both the local and official levels when the idea was first suggested, including among then-minister of environment Laila Iskandar. The amendments stated that coal will be used on a 'large scale' without stating a definitive number on the industries in which it will be used.

Tanzania: Dangote Cement has signed two agreements that will enable its US$600m cement plant in Tanzania to generate 150MW from coal.

One agreement is with Tancoal. Dangote Cement has also signed a coal prospecting licence for a site in Mbinga. However, the plant will first run on diesel until it is able to generate its own electricity from coal.

The deals ends a year-long dispute between the government and the cement plant after Tanesco failed to provide electricity. The plant was considering importing coal from South Africa, which was a cheaper option than buying it from the area.

The cement plant is expected to reduce cement prices by 50% once production commences in early 2016. It will take advantage of the growing construction industry, which contributes 12.5% to the country's GDP. It will offer more than 1500 direct jobs and 9000 indirectly.

India: The third tranche of coal auctions that came to an end on 13 August 2015 included the successful US$281m bid for the Majra mine in Maharashtra by Jaypee Cement. This translates to US$18.89/t.

Egypt/Sudan: According to Daily News Egypt, Qalaa Holding for Investment has signed an agreement with Financial Holding International (FHI) to sell FHI some of Qalaa's units. This is in line with Qalaa's aim to exit from some of its non-basic businesses and to reduce its consolidated debts of US$105m.

Qalaa will sell FHI its stakes in MENA Homes, Grandview and Dina Farms Land Companies, which will be separated from Dina for Agricultural Investments. In return, Qalaa will buy FHI's stakes in several affiliated companies, including cement producer ASEC Holding, as well as Taqa Arabia and Mashreq Petroleum in the energy sector. Qalaa will also buy FHI's stakes in Nile Logistics International in the Transport and logistics sector, Dina Farms Supermarkets in the retail sector and United Company for Foundries (UCF) in the metallurgical industry sector. The deal is expected to be finalised by December 2015, after the customary conditions and requirements are met.

Abdallah El-Ebiary, managing director of Qalaa's cement division, said that the cement sector is a main strategic area for Qalaa and that it has no intention of exiting it, nor the transport and energy sectors. He added that FHI plans to build a new pulveriser mill at the ASEC Cement plant in Minya, Egypt within the company's plan to convert to alternative energy due to the energy deficit and gas crisis. The cost will be US$30.2m and it will be built in the fourth quarter of 2015. "The company's strategy for the next period is to diversify to new and cheap energy sources instead of the traditional and unavailable sources. The investment cost is at US$30.2m, with US$1.31m for a pulveriser mill and US$11.8m for alternative fuel production," said El-Ebiary.

Qalaa also plans to increase the production capacity of its Takamol cement plant in Sudan from 430,000t/yr to 800,000t/yr in 2016. Qalaa aims to establish a new coal mine for the plant. The plant is 51% owned by ASEC Cement and 49% controlled by the Sudanese Social Security Investment Authority (SSIA), the entity that manages all pension funds in Sudan.

Egypt: Investments worth US$30bn in the coal industry are expected to be conducted within the next five years, according to Egypt's investment minister Ashraf Salman.

Salman said that there is 'full coordination' between the ministries of environment, electricity and investment to adhere to international environmental standards when using coal. Egypt's cabinet announced new rules on coal use in April 2015, which stipulate that coal imports can only take place after approval from the ministry of environment. The new rules are an amendment to a law on environmental affairs and allow the use of coal for cement, iron and steel, coke and aluminium production and in power plants.

Salman said that using coal as an energy source would decrease the dependency on natural gas as a primary energy source and petroleum products in steel and cement production. Despite the energy crisis, which has caused frequent and numerous power outages for years, the cabinet's approval of new coal use has caused controversy both within the government and outside.

Egypt: 90% of cement plants have agreed to use coal to increase their cement production, according to Egypt's Industrial Development Authority.

The authority is facilitating plant upgrades to enable coal use and ensuring that the necessary quantities of coal can be supplied, according to the head of the Industrial Development Authority, Ismail Gaber. He added that Egypt needs more than 32Mt/yr of cement to meet the needs of the domestic market.

In light of the population increase, the demand on energy has significantly increased in Egypt in recent years. The government agreed to include coal in the cement industry energy system in April 2014. Prior to that, coal was used only in the iron and steel, coke and aluminium industries. It is now also allowed to be used for electricity and cement production.

This week Beijing announced that it would close the last of its four largest coal-fired power plants, the China Huaneng Group Corp's 845MW power plant, in 2016. The four coal-fired plants will be replaced by four gas-fired plants with 2.6 times more electricity capacity than the former coal plants. China's policy makers are also encouraging increased use of hydroelectric power, solar and wind and is trying to restart its nuclear power programme.

In the same week, the Independent reported that Costa Rica had achieved a renewable energy milestone, having used 100% renewable energy for the preceding 75 days. The achievement was reportedly made possible by heavy rainfall, which powered four hydroelectric plants. Costa Rica has an impressive track record when it comes to energy sources. In 2014, 80% of its energy came from hydropower and 10% came from geothermal energy. In total, 94% of its energy requirements were met by renewable energy.

However, this week we also heard that Dangote is building the world's biggest oil refinery, which will process 650,000b/day. It will also be Nigeria's first oil refinery. Aliko Dangote, owner of Dangote Group, decided to up the initial design from 450,000b/day because he believes that Nigeria, as a leading producer of crude oil, should also be credited with local refining capacity. Currently, Nigeria produces crude oil, but has to buy refined products from abroad. The refinery is expected to be fully operational by 2017.

Efforts to increase renewable energy should be strongly encouraged - the benefits to the planet and its population are undeniable. However, renewable energy technology has a way to go (if ever) before it can entirely replace fossil fuel-derived energy, which makes Dangote's investment a safe bet. As renewable energy like solar and wind power is entirely reliant on nature, supplies can never be assured.

While sporadic supplies to houses and small businesses may be part of the price we eventually have to pay for a greener world, larger businesses like supermarkets and cement plants, which could lose millions (or billions) from power outages, will surely have something to say, and a lot of sway, when it comes to relying completely on renewable energy. In addition, power outages to essential services like hospitals are unthinkable when it comes to the health of our loved ones. Ultimately, the argument for relying on renewable energy may well be won by utilitarians' 'greater good' argument, but how would it feel to know that your sick child could have been saved by fossil fuel-derived energy?

China: Beijing, where pollution averaged more than twice China's national standard in 2014, will close the last of its four major coal-fired power plants, China Huaneng Group Corp's 845MW plant, in 2016.

Plants owned by Guohua Electric Power Corp and Beijing Energy Investment Holding Co were closed in March 2015. A fourth major power plant, owned by China Datang Corp, was shut in 2014. The plants will be replaced by four gas-fired stations with the capacity to supply 2.6 times more electricity than the coal plants.

The closures are part of a broader trend in China, which is the world's largest CO₂ emitter. Beijing plans to cut its coal consumption by 13Mt/yr by 2017 from the 2012 level in a bid to slash pollutants. Shutting all the major coal power plants in the city, reducing coal use by 9.2Mt/yr, is estimated to cut CO₂ emissions by 30Mt/yr according to analysts.

China planned to close more than 2000 smaller coal mines in 2013 - 2015, according to Song Yuanming, vice chief of the State Administration of Coal Mine Safety. Closing coal-fired power plants is seen as a critical step in addressing pollution in China, which gets about 64% of its primary energy from coal.

Coal use is declining in China as policy makers encourage broader use of hydroelectric power, solar and wind. It is also pushing to restart its nuclear power programme in a bid to clear the skies. China's electricity consumption in 2014 grew at its slowest pace in 16 years, according to data from the China Electricity Council. Its CO₂ emissions fell by 2% in 2014, the first decline since 2001, signalling that efforts to control pollution are gaining traction.

Vietnam: Ha Tien 1 Cement Company is negotiating with Indonesian partners to import coal from Indonesia, according to the Saigon Securities Incorporated (SSI). Under the current laws, businesses must seek permission for the import of energy products.

Coal accounts for 40% of clinker and 32% of cement production costs. Ha Tien 1 is considering importing coal because the market price has fallen sharply with the drop in crude oil prices. Ha Tien 1 currently buys coal from Vinacomin at US$100/t. The coal price in Indonesia is US$52/t free on board (FOB).

If Ha Tien 1's proposal to import coal gets approval from the government, the cement manufacturer would cut production costs and be able to reduce sale prices and boost its sales. If Ha Tien 1 could import 25% of the total coal it needs for production, it would be able to reduce its production cost by 8%.

India: In the first major step towards opening the coal mining sector, India's government will start allocating coal blocks to state governments for commercial mining. The move, which is expected to be undertaken in April 2015, will put an end to the 41-year-old monopoly over the commercial sale of coal.

The coal ministry will allot non-operational mines to state governments for commercial coal mining for end use in the iron, steel, cement and allied sectors. This will bring business and revenue to coal-rich states, which have so far only received royalties from private companies mining coal for captive use.

"Non-operational mines will be allotted to state governments to extract coal for commercial usage and market sale. States could then sell this coal to the utilities under their umbrella or any private company for various end uses, as specified in the ordinance," said a senior official. This is pursuant to an enabling provision on commercial mining and sale of coal in the coal ordinance (special provisions), 2014. The coal ministry will also issue guidelines for the appointment of mining development operators (MDOs) by states.

The coal ordinance has inserted section 3A in the Coal Mines Nationalisation Act to enable joint ventures by central and state governments and their companies and any other company, for mining operations in India 'in any form, either for own consumption, sale or for any other purpose,' in accordance with a licence granted by the state government concerned.