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Cop: Australia backs no new coal power call: Correction

  • Spanish Market: Coal, Electricity
  • 20/11/24

Corrects missing word in headline

Major coal producers Australia and Colombia, along with the EU and 23 other countries including the UK, have pledged not to allow any new unabated coal-fired power generation in their energy systems at the UN Cop 29 climate summit in Baku, Azerbaijan.

This comes a day after Colombia, New Zealand and the UK joined a Netherlands-led international coalition focused on phasing out incentives and subsidies for fossil fuels.

Most of the coal pact signatories are members of the Powering Past Coal Alliance, under which some countries have committed to phasing out existing unabated coal power generation. Australia is not listed as a member of the alliance, but the cities of Sydney, Melbourne and Canberra are.

Unsurprisingly, the list of signatories did not include China or India, the two world's largest coal importers. It also does not include the US, although the country is part of the Powering Past Coal Alliance.

"There is no space for new unabated coal in a 1.5°C or even 2°C aligned pathway, yet coal capacity rose by 2pc last year," the pact signatories said today.

The pledge focuses on coal-fired generation and does not mention the phasing out of exports or imports.

Australia, is the world's second-largest seaborne coal exporter. The country is looking to host Cop 31 in 2026 by outbidding Turkey for the spot. But no realistic policy changes in coal exports is expected from Australia, which will have a federal parliamentary election by May 2025 and winning votes from key coal mining regions in New South Wales and Queensland has proven to be crucial in recent elections.

Turkey is on track to overtake Germany as Europe's largest coal-fired generator this year and was not among the signatories of today's coal pledge.

Amid calls for a faster phase-down of unabated coal-fired power generation, global coal trade is set to reach a record high of more than 1.5bn t this year, surpassing last year's 1.38bn t, according to IEA data. Coal consumption will probably remain resilient, supported by higher electricity demand growth in China and India.

China has not set a new climate plan since 2021, but it is expected to ramp up its ambitions in a new plan due by February 2025. India and Indonesia are strongly encouraging higher coal production to ensure energy security.

The US Energy Information Administration (EIA) in September lowered its forecast for US coal-fired generation in this year but raised its expectation for 2025.


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05/02/25

Equinor Norwegian gas output up on year in 2024

Equinor Norwegian gas output up on year in 2024

London, 5 February (Argus) — Norwegian state-controlled Equinor's gas output on the Norwegian continental shelf (NCS) edged up on the year, driven by record-high output from the giant Troll field and fewer unplanned outages at NCS assets, the firm said on Wednesday. The firm's Norwegian gas output rose by 4pc on the year to 758,000 b/d of oil equivalent (boe/d) or 107mn m³/d in 2024. This was driven by "strong contributions" from the Troll and Johan Sverdrup fields, Equinor said. Gas production from Troll — in which Equinor holds a 31pc stake — reached an all-time high last year at roughly 116mn m³/d, the Norwegian producer has said. And there were fewer "unplanned losses" on the NCS last year than in 2023, Equinor said. The firm was the largest producer on the NCS in 2023, accounting for more than a third of total gas output on the shelf, the latest available data from the Norwegian Offshore Directorate show. Equinor's global gas output rose by 2pc to 985,000 boe/d or 139mn m³/d last year. But the firm's combined oil and gas global output was slightly lower in 2024, with a small increase in gas production insufficient to offset lower liquids output. Equinor's equity liquids production was 1.08mn boe/d in 2024, down by 3pc on the year. Equinor expects "more than 10pc growth from 2024-27" in oil and gas production, reaching a peak at 2.3mn boe/d in 2027. And the firm estimated that hydrocarbons output would grow by 4pc from 2024 to 2025. Equinor's reported Norwegian gas prices dropped by 22pc on the year to $9.47/mn Btu, or €31.01/MWh, in 2024, using Wednesday's exchange rate. And the average reported price for its US gas decreased by 4pc to $1.70/mn Btu, or €5.57/MWh. Equinor made a profit of $8.83bn in 2024, down by 26pc on the year. Profit was $1.99bn in the fourth quarter, 23pc lower on the year. The company has cut its 2030 expected renewables capacity to 10-12GW, from 12-16GW, noting that the pace of the energy transition is slower in some markets. It did not give a new target for capital expenditure allocation to this sector. Equinor also modified some net carbon intensity goals, setting ranges rather than absolute targets. By Georgia Gratton and Jana Cervinkova Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Equinor scales back renewables plan


05/02/25
05/02/25

Equinor scales back renewables plan

London, 5 February (Argus) — Norwegian state-controlled Equinor said today it has cut by up to 25pc its target for renewables capacity by 2030, and abandoned a plan to allocate half its capital expenditure (capex) to low carbon projects by that same year. The company has cut its 2030 expected renewables capacity to 10-12GW, from 12-16GW, noting that the pace of the energy transition is slower in some markets. It did not give a new target for capex allocation to this sector. Equinor also modified some net carbon intensity goals, setting ranges rather than absolute targets. It now plans to reduce net carbon intensity — which includes scope 3 emissions, from sold products — by 15-20pc by 2030 and by 30-40pc by 2035, from a 2019 baseline. The previous targets were at the higher end of these ranges. Equinor made a profit of $8.83bn in 2024, down by 26pc on the year. Profit was $1.99bn in the fourth quarter, lower on the year by 23pc. The company's oil and gas output was slightly lower in 2024, with a small increase in gas production not quite offsetting lower liquids output. Equinor's equity liquids production was 1.08mn b/d of oil equivalent (boe/d) in 2024, down by 3pc on the year, and its equity gas production rose by 2pc to 985,000 boe/d over the same timeframe. It expects "more than 10pc growth from 2024-27" in oil and gas production, and estimated that hydrocarbons output would grow by 4pc from 2024 to 2025. Liquids and gas prices fell in 2024. Equinor's reported Norwegian and US gas prices rose by 5pc and 26pc, respectively, on the year in the October-December period, but this was not enough to assuage a decrease across the year. The average reported price for its Norwegian gas dropped by 22pc on the year to $9.47/mn Btu in 2024, and the average reported price for its US gas decreased by 4pc to $1.70/mn Btu. Equinor reported an average liquids price of $74.1/bl in 2024, 1pc lower on the year. Its reported fourth-quarter 2024 liquids price fell by 10pc from the same period in 2023, to $68.5/bl. Equinor's power generation rose in 2024, boosted by additions in Brazil and Poland in 2023 and the start of the 531MW Mendubim solar plant in Brazil in 2024. Equinor's share of power generation stood at 4,917GWh in 2024, up by 19pc on the year — but its renewables share rose faster, by 51pc to 2,935GWh. Equinor has maintained its target of 30mn-50mn t/yr of CO2 storage by 2035. Equinor trimmed 600,000 t/CO2 equivalent (CO2e) from its absolute scope 1 and 2 — or operational — emissions over 2023-4. Scope 1 and 2 emissions from its operated production stood at 11mn t/CO2e in 2024. The company's upstream carbon intensity fell to 6.2kg CO2/boe in 2024, down by 7.5pc on the year. Equinor will buy back $5bn of shares in 2025, having bought $6bn in 2024. It completed the fourth $1.6bn tranche of its 2024 programme on 14 January and will launch the first tranche — of up to $1.2bn — of its 2025 programme on 6 February. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

S Korea to invest $89.5mn in net zero, energy security


05/02/25
05/02/25

S Korea to invest $89.5mn in net zero, energy security

Singapore, 5 February (Argus) — South Korea today announced plans to invest 129.3bn won ($89.5mn) this year in new research and development projects in the energy sector, to achieve carbon neutrality and ensure domestic energy security. About W78.7bn will go to 41 projects in the first round of funding this year. These projects will focus on technologies related to "carbon-free" energy such as renewable energy, nuclear power, and hydrogen, among others, South Korea's energy ministry (Motie) said on 5 February. The ministry will also invest W46.2bn to improve energy efficiency and in power systems, especially given surging power demand driven by artificial intelligence. Motie also plans to invest W56.9bn in securing technologies such as next-generation solar power, flexible operation of nuclear power plants, and large-capacity water electrolysis facilities, to "respond to the climate crisis". South Korea's science ministry in December 2024 unveiled plans to invest W2.75 trillion in technologies this year to respond to climate change, which included renewable energy technology and "carbon-free" technologies like nuclear power. It is unclear if the latest W56.9bn commitment is part of the W2.75 trillion announced last year or a separate investment. South Korea in December 2024 also announced plans to invest W450 trillion won in green finance by 2030, then acting president and prime minister Han Duck-soo said before he was impeached later that week . This made deputy prime minister and finance minister Choi Sang-mok the current acting president and acting prime minister. President Yoon Suk Yeol was impeached on 14 December and has since been arrested. If Yoon is removed or resigns, a presidential election must be held within 60 days, instead of the original election date in 2027. By Tng Yong Li Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

South Africa has 44mn t/yr coal projects in pipeline


03/02/25
03/02/25

South Africa has 44mn t/yr coal projects in pipeline

Cape Town, 3 February (Argus) — South Africa currently has 16 project proposals for mostly thermal coal projects in the pipeline with an aggregate capacity of 44mn t/yr, according to the IEA. Globally, new or expanded coal mines aimed at the export market with a total capacity of 430mn t/yr are planned, the IEA says in its Coal 2024 Analysis and forecast to 2027 report. Last year coal consumption in Africa increased by 6mn t to 191mn t, the IEA estimates, driven mainly by South Africa's higher coal consumption owing to an improved performance by state-owned Eskom's electricity plants. In the near term, the IEA forecasts modest growth in Africa's total coal demand to 203mn t/yr by 2027. South Africa increased its coal consumption to 165mn t last year on improved economic activity and less load shedding. The country is by far the biggest coal consumer in Africa, accounting for 86pc of the continent's coal consumption in 2023. Strong electricity demand growth is expected to create room for an additional 14 TWh of coal-fired generation in South Africa over the next three years, the IEA predicts. Three coal-fired power plants of 4.5GW capacity that were due to shut by 2027 will run until at least 2030 . Hence the IEA projects that South Africa's coal consumption for power generation will rise to 124mn t by 2027. "The future of coal demand in South Africa will be shaped by policy makers' decisions regarding the coal-fired power fleet, either to invest in their maintenance to keep them running for longer or to phase them out," the IEA says. Coal production in South Africa grew marginally over the past two years to 234mn t in 2024, the IEA estimates. The main challenges to increasing production have been an unstable electricity grid and frequent disruptions to coal transport as state-owned Transnet has struggled with collisions, equipment failures, cable theft, derailments, power outages and increased costs. Last year, South Africa's Canyon Coal started shipments from its Gugulethu mine that is set to produce 2.4mn t/yr, half of which will be NAR 5,500 kcal/kg fob RB thermal coal. After years of being in administration, the Optimum coal mine was added to the project pipeline after new owner Liberty Coal settled outstanding legal issues related to the mine. Liberty plans to increase Optimum's capacity to 11mn t/yr of mid-CV thermal coal, but the mine first needs significant reconstruction. Until 2027, the IEA expects coal production in South Africa and most other African countries to remain flat, apart from Ethiopia where a new coal mine will slightly boost output, the IEA said. But growing steel production in Mozambique and Zimbabwe is set to propel coal production. In Mozambique, India's state-controlled Steel Authority of India (Sail) will invest up to $200mn over the next four years to double the capacity of its Benga coking coal mine to 4.5mn t/yr. Most of the mine's output is intended for Sail's internal use in India. In Zimbabwe, Chinese firm Tsingshan Holding's Dinson Iron and Steel (Disco) unit started production last year, with initial capacity of 600,000 t/yr to be expanded to 5mn t/yr once the plant is complete. In addition, Mozambique, Zimbabwe and Botswana plan a major infrastructure project, which includes a new deepwater port at Techobanine, south of Maputo, that will cost up to $1.5bn. Botswana plans to revive a long-standing project to create a 1,700km rail link through Zimbabwe to Maputo, enabling the landlocked country to export its coal reserves estimated at over 200bn t. South African infrastructure operator Grindrod will take full ownership of the Matola Coal Terminal in Mozambique by spending $77mn to acquire Vitol's 35pc stake. Grindrod then intends to expand the terminal's capacity beyond its current 7mn t/yr. Thai Mocambique Logistica plans to construct a coal port at Macuse in Mozambique and build a railway line to connect the port with coal mines in Tete province. Neighbouring Malawi also aims to import coal from Tete via a rehabilitated railway from Balaka to its capital Lilongwe. "The country is seen as a favourable option for coal exports compared to South Africa, whose ports are expected to reach capacity limits," the IEA says. Elaine Mills Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US manufacturing expands in Jan after 26 months: ISM


03/02/25
03/02/25

US manufacturing expands in Jan after 26 months: ISM

Houston, 3 February (Argus) — US manufacturing activity expanded in January after 26 consecutive months of contraction, according to the Institute for Supply Management's latest factory survey. The manufacturing purchasing managers' index (PMI) registered 50.9 in January, up from 49.2 in December. The new orders index rose to 55.1 last month from 52.1 in December, marking a third month of expansion. Readings above 50 signal expansion while readings under that point to contraction. Production rose to 52.5 last month from 49.9 the prior month. Employment rose to 50.3 from 45.4. "Demand clearly improved, while output expanded and inputs remained accommodative," ISM said. "Demand and production improved; and employment expanded." US factory activity expanded robustly in the first two years after Covid-19 hit, then contracted for the subsequent two years, even as growth in services activity, the largest part of the economy, maintained the overall economy in expansion territory. The new export orders index rose by 2.4 points to 52.4 and the imports index rose by 1.4 points to 51.1. The prices index rose to 54.9 from 52.5, with aluminum, freight rates, natural gas, and scrap among gainers. "Prices growth was moderate, indicating that further growth will put additional pressure on prices," ISM said. The inventories index fell by 2.5 to 45.9, signaling contracting inventories. Backlog of orders fell by one point to 44.9, indicating order backlogs contracted for the 28th consecutive month after 27 months of expansion. Supplier deliveries rose by 0.8 to 50.9, suggesting marginally slower deliveries. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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