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Utah power plant takes Illinois basin coal

  • Spanish Market: Coal, Electricity
  • 06/08/24

The Intermountain Power Project (IPP) in Utah further diversified its coal supply earlier this year to offset output declines from coal mines in the state.

The plant took 12,315 short tons (11,351 metric tonnes) of coal from Alliance Resource Partners' Gibson mine in Indiana in April, operating data collected by the US Energy Information Administration (EIA) shows. It also has taken 270,824st of Powder River basin (PRB) coal from Arch Resources' Black Thunder mine in Wyoming, extending a trend started in 2023 as Utah coal supply was in earlier stages of dwindling.

April's delivery of coal from the Gibson mine was the first time since at least 2008 that IPP has taken coal from the Illinois basin. Coal mined east of the Mississippi River typically does not travel west at least partly because of logistics challenges. It takes at least two railroads to take coal from the Illinois basin to Utah, and not all power plants can do that.

According to EIA data, no other power plants in Utah and Colorado took any Indiana-sourced coal in at least ten years.

IPP declined to comment on whether it will continue to take Illinois basin coal. Alliance Resource Partners did not respond to requests for comment.

The coal received from the Gibson mine in April was part of a test burn. It is a higher heat content coal than the PRB supply and closer to what Utah producers produce, but also higher sulfur than coal from the PRB and Utah.

Prior to last year, IPP only took coal from Wyoming, Colorado and Utah.

IPP started receiving PRB coal in March 2023 as Utah coal producers struggled to meet contractual commitments. It also took coal from Colorado in 2023.

Utah coal producers still are not supplying what they had previously agreed to, according to people familiar with the situation. This has forced IPP to idle one of its two generating units during non-peak seasons and to look further afield for fuel supply.

Output from the Uinta basin dropped to a 38-year low in the second quarter partly because American Consolidated Natural Resources' Lila Canyon mine, which incurred a fire in September 2022, was closed in January. Wolverine Fuel's Skyline #3 - the largest active mine in Utah – decreased output by 71pc to 244,377st in the second quarter because of the longwall move.

The delivery from the Gibson mine in April represents a fraction of that mine's output. In the first half of this year, the mine produced 2.89mn st, up from 2.67mn st a year earlier, MSHA data show.

IPP's demand for PRB and Illinois basin coals may be short-lived. The power plant's owners expect to switch to natural gas in mid-2025, after operator Intermountain Power Agency (IPA) completes construction of an 840MW gas unit in 2025. IPP's largest customer, the Los Angeles Department of Water and Power, is required by the state law to stop using coal-fired generation by 2026. IPA declined to comment on fuel purchasing.

In the first five months of 2024, IPP took 888,378st of coal from Colorado and Utah coal mines, according to EIA. That is up from 766,705st IPP has taken from the states' mines during the same five months last year. Shipments of PRB coal also increased compared with January-May 2023, when they had totaled 138,030st.


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08/08/24

Australia’s 1H large-scale renewable approvals rise

Australia’s 1H large-scale renewable approvals rise

Sydney, 8 August (Argus) — Australia's Clean Energy Regulator (CER) approved 24pc more large-scale renewable energy capacity in this year's first half compared with a year earlier, while large-scale generation certificates (LGCs) held in the local registry also increased. The CER approved 1,175MW under the Large-scale Renewable Energy Target (LRET) scheme over January-June, up from 949MW in the same period of 2023 and the highest for a first half since 2020 when 2,146MW was accredited, CER data show. Total approved capacity in 2023 reached 2,206MW , slightly above 2022 but almost half of the record highs of 4,110MW in 2019 and 4,070MW in 2020. LRET-accredited plants can issue LGCs and sell them to liable entities under Australia's Renewable Energy Target, mainly electricity retailers that need to surrender the certificates to the CER on an annual basis. LGCs can also be sold to companies and individuals looking to support their emissions reduction claims. Total LGCs in the local renewable energy certificate registry reached 28.45mn at the end of June this year, or the equivalent of 28.45TWh, with each certificate representing 1MWh of renewable power. This is up from 24.66TWh in the same period of 2023, according to CER data. Accounts held by major utilities including Origin Energy, Alinta Energy, AGL and EnergyAustralia were among the largest LGC holders at the end of the first half of the year ( see table ). Total operational accredited capacity under the LRET reached 20,971MW in June. The CER also reported 7,853MW of committed capacity from large-scale renewable projects that received all development approvals and reached a final investment decision by the end of the first half. There was also 4,391MW of "probable" projects, or those that have announced power purchase agreements with strong counterparties or provided other evidence of funding. By Juan Weik Australia top 10 LGC account holdings* Origin Energy 4,247,730 AquaSure 1,772,066 Alinta Energy - GreenPower account 970,732 AGL HP2 933,377 EnergyAustralia 916,174 Synergy 843,747 Stanwell 719,831 Alinta Energy 652,988 Origin Energy - GreenPower account 635,489 Snowy Hydro - GreenPower account 628,376 Source: CER * as of 30 June 2024 Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Harris selects Minnesota's Walz as running mate


06/08/24
06/08/24

Harris selects Minnesota's Walz as running mate

Washington, 6 August (Argus) — Democratic presidential candidate Kamala Harris has picked Minnesota governor Tim Walz (D) as her running mate, elevating a Midwestern voice who has championed ambitious policies on climate change and clean energy during his two terms as governor. Walz, who was a schoolteacher before serving in the US Congress and then as governor, only recently emerged on the national stage as a favorite of progressives who could take on Republicans. Harris said she chose Walz as her running mate based partly on his "convictions on fighting for middle class families" and his efforts to deliver for "working families like his own." Harris will appear with Walz today at a rally in Philadelphia, Pennsylvania, in the first event the campaign says will be a "five-day barnstorm" to introduce the Democratic ticket to voters in battleground states. The Harris campaign today touted Walz's service in the military and election in a conservative-leaning district as a sign of his broader political appeal. In 2021, Walz made Minnesota the first state in the Midwest to adopt California's tailpipe standards, and last year he signed a law requiring Minnesota utilities to switch entirely to wind, solar and other carbon-free electricity sources by 2040. Walz signed a separate law in June that would expedite the state's permitting process for renewable power projects. The campaign for Republican nominee Donald Trump today said Walz was a "West Coast wannabe" who as governor replicated California's policies on the environment. "From proposing his own carbon-free agenda, to suggesting stricter emission standards for gas-powered cars and embracing policies to allow convicted felons to vote, Walz is obsessed with spreading California's dangerously liberal agenda," Trump campaign press secretary Karoline Leavitt said. Minnesota does not produce any crude or natural gas and has no coal mines. As of 2022, coal-fired power plants represented 27pc of Minneosta's in-state electricity generation, nuclear generated 24pc of electricity and renewable resources supplied 31pc of electricity. Minnesota is the fifth-largest ethanol producer in the US and has a production capacity of 1,400mn USG/yr. Environmentalists applauded Walz's selection as a running mate who has sought ambitious policies related to climate change and clean energy, in addition to signing a law last year providing $2bn for environment, climate and energy. The Harris-Walz ticket "isn't afraid to tackle climate change head-on," Sierra Club executive director Ben Jealous said. Harris' vice presidential selection meant passing over Pennsylvania governor Josh Shapiro (D), who was also being vetted as someone who could help Harris win the battleground state. Democrats hope the selection of Walz will offer a contrast to Republican vice presidential nominee JD Vance, who Walz has criticized as "just weird" for positions such as faulting women for not having children. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Indonesia’s Geo Energy to build new coal infrastructure


06/08/24
06/08/24

Indonesia’s Geo Energy to build new coal infrastructure

Singapore, 6 August (Argus) — Indonesian coal producer Geo Energy has signed a $150mn t contract for the construction and development of a 92km coal hauling road and loading jetty in south Sumatra's Jambi province. The infrastructure will have a capacity of 40mn-50mn t yr with a planned completion in late 2025 or early 2026. Of this, 25mn t will be reserved for Geo Energy's Triaryani (TRA) mine, with the remaining capacity to be leased to neighbouring mines, Geo Energy said. The development will carried out by state-owned Chinese enterprises First Harbor Consultants and Norinco International. The new infrastructure will be instrumental in TRA aiming to boost production up to 25mn t, Geo Energy said. Geo Energy produces low-calorific value coal. Its January-March coal sales totalled 1.8mn t, down by 5.3pc from 1.9mn t a year earlier. Its output fell by over 16pc to 1.5mn t over the same period. The output drop was because of seasonal and weather conditions, the company said in May . It acquired stakes in domestic mining firm Golden Eagle Energy and logistics firm Marga Bara Jaya in July 2023. The deal gives it access to proven and probable coal reserves of more than 300mn t in south Sumatra. The company said it is on track to achieve sales of 10mn-11mn t this year because it expects higher year-on-year output in the second half of the year. It has obtained a production quota of 10.5mn t for 2024. This includes 8mn t at its SDJ and TBR mines and another 2.5mn t for TRA. By Andrew Jones Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Adani raises coal output at Australia’s Carmichael mine


06/08/24
06/08/24

Adani raises coal output at Australia’s Carmichael mine

Singapore, 6 August (Argus) — Indian conglomerate Adani raised thermal coal output at its Carmichael mine in Australia during April-June compared with a year earlier. The company produced 3.2mn t of coal during the quarter, up by over 21pc compared with last year's corresponding quarter. It sold 2.8mn t of coal in the quarter, up by 16pc from a year earlier. Carmichael produced 11.2mn t of coal during India's fiscal year from April 2023-March 2024, compared with 7.7mn t in 2022-23, the first full year of operations. Sales grew to 11.2mn t last year, up from 7.3mn t a year earlier. Adani aims to ramp output from this mine to 14mn-15mn t in 2024-25. It shipped the first cargo from Carmichael in January 2022, after missing its initial target of shipping first coal in 2021. Carmichael is around 500km inland from the Abbot Point coal port, which is also owned by Adani. Carmichael coal has an average calorific value of around NAR 4,950 kcal/kg, lower than the standard 5,500-6,000 kcal/kg produced in Australia's Hunter valley and Bowen basin. Argus assessed Australian NAR 5,500 kcal/kg coal at $87.80/t fob Newcastle on 2 August. Adani's IRM division, the largest Indian thermal coal importer and trading firm, handled less coal during April-June compared with a year earlier. Volumes for the quarter were 15.4mn t, down by 13pc from a year earlier. It was also lower by almost 38pc from 24.7mn t during January-March. The firm's coal-trading business primarily caters to the requirements of Indian private-sector, central and state government-owned utilities. It participates as a bidder in tenders issued by these utilities from time to time. India's thermal coal imports rose in June from a year earlier, in line with an increase in coal-fired generation to cater for the rise in power demand during the peak summer period. The south Asian country imported 14.09mn t of thermal coal in June, up by 4.2pc from a year earlier, according to data from shipbroker Interocean. But imports fell from 16.70mn t in May. Imports during January-June were up at 89.64mn t, from 81.13mn t in the same period a year earlier. By Ajay Modi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia’s Newcastle coal ship queue increases


05/08/24
05/08/24

Australia’s Newcastle coal ship queue increases

Sydney, 5 August (Argus) — The shipping queue outside the key Australian coal port of Newcastle hit a two-year high of 41 vessels on 5 August, despite higher throughput at the Port Waratah Coal Service (PWCS) terminals. The average vessel turnaround time in July at PWCS eased to 7.38 days from a 22-month high of 7.61 days in June as exports increased but the shipping queue grew on increased arrivals. The PWCS terminals' shipments rose to 8.61mn t in July from 7.9mn t in June but was down from 8.79mn t in July 2023, according to PWCS data. There was no maintenance planned for July but the port of Newcastle was hit by storms and rough seas during the month. There is a major rail maintenance programme under way during 3-6 August . Newcastle Coal Infrastructure (NCIG) does not release data for its terminal at Newcastle, while the Port Authority of New South Wales has not yet released overall data for July. Newcastle shipped 12.28mn t in June, up from 11.77mn t in May. This implies that NCIG shipped 4.38mn t in June. Newcastle shipped 73.2mn t during January-June, up from 67.98mn t for January-June 2023, according to port data. By Jo Clarke PWCS coal loading data Jul '24 Jun '24 Jul '23 Jan-Jul '24* Jan- Jul '23* PWCS loadings (mn t) 8.61 7.90 8.79 56.39 52.92 PWCS stocks (mn t) 2.25 1.60 1.53 1.57 1.46 PWCS turnaround time (days) 7.38 7.60 2.88 4.66 2.13 Newcastle ship queue (vessels) 41 31 13 23.57 10.57 Source: PWCS * PWCS loadings is a total YTD, all others are average per month YTD Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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