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Dozens of US coal plants eligible for MATS extension

  • Spanish Market: Coal, Electricity, Emissions
  • 15/04/25

The White House has identified more than 60 fossil fuel-fired power plants that will have two extra years to comply with the more stringent mercury and air toxics standards (MATS) finalized in 2024.

Under a proclamation signed by US president Donald Trump last week, the plants on the list will be able to operate under whatever existing mercury and air toxics standards they currently are subject to until 8 July 2029. That is two years after the compliance deadline put in place in May 2024.

The Environmental Protection Agency (EPA) rules finalized last year tightened mercury and air toxics standards for coal- and oil-fired units by 67pc, included new emissions-monitoring requirements and added standards for lignite-fired coal plants that put them in line with those for other coal plants.

EPA in March said it was reviewing the new standards and said companies could seek exemptions to the mercury rule and other emissions rules. Trump followed that up last week with a proclamation that certain generating facilities would be given a two-year exemption in complying with the 2024 rule. The White House released the list of exempt power plants late on 14 April.

Most of the plants on the list are coal-fired generators, some of which were scheduled for retirement by the end of 2027. These include Tennessee Valley Authority's Kingston plant and one unit of its Cumberland plant, as well as Vistra Energy's Kincaid, Baldwin and Newton plants and two coal units of Vistra's Miami Fort plant.

The two coal units at Southern Company's Victor J Daniel plant in Mississippi also have been exempted from the new mercury and air toxics rules for two years. Southern had planned on retiring those units by the end of 2027, but in February, the Mississippi Public Service Commission approved two special contracts that were expected to need unit 2 of the Daniel plant and possibly a unit of a natural gas plant to run into the 2030s.

Some other coal plant units owned by Southern, TVA and Vistra also are now exempt from the July 2027 mercury and air toxics compliance deadline. So are some plant units owned by East Kentucky Power Cooperative (EKPC), NRG, Ameren and Entergy.

At least two natural gas plant units — unit 5 of Southern's Plant Barry and City Utilities of Springfield's John Twitty Energy Center, which has coal and natural gas generation — are exempt from the July 2027 deadline. So is unit 5 of Entergy's RS Nelson plant, which runs on petroleum coke.

Essentially all of the other units in the White House's list are coal units, including Otter Tail Power's Big Stone and Coyote Station plants in North Dakota. Otter Tail said it had requested the exemptions "to avoid making unnecessary expenditures" if EPA decides to roll back the 2024 rule.

EKPC said it was "grateful" its request to exempt the Spurlock and Cooper coal-fired power plants in Kentucky was granted and that the company "will continue to operate the plants in accordance with all market and environmental rules."

NRG said it was still reviewing the order, but did not expect it to have any effect on its plans.

TVA, Southern, Vistra and owners of other power plants given compliance extensions did not respond to requests for comment.


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09/05/25

White House ends use of carbon cost

White House ends use of carbon cost

Washington, 9 May (Argus) — The US is ending its use of a metric for estimating the economic damages from greenhouse gas (GHG) emissions, the latest reversal of climate change policies supported by President Donald Trump's predecessors. The White House Office of Management and Budget (OMB) this week directed federal agencies to stop using the social cost of carbon as part of any regulatory or decision-making practices, except in cases where it is required by law, citing the need "remove any barriers put in place by previous administrations" that restrict the ability of the US to get the most benefit "from our abundant natural resources". "Under this guidance, the circumstances where agencies will need to engage in monetized greenhouse gas emission analysis will be few to none," OMB said in a 5 May memo to federal agencies. In cases where such an analysis is required by law, agencies should limit their work "to the minimum consideration required" and address only the domestic effects, unless required by law. OMB said these steps are needed to ensure sound regulatory decisions and avoid misleading the public because the uncertainties of such analyses "are too great". The budget office issued the guidance in response to an executive order Trump issued on his first day in office, which also disbanded an interagency working group on the social cost of carbon and called for faster permitting for domestic oil and gas production and the termination of various orders issued by former president Joe Biden related to combating climate change. The metric, first established by the administration of former US president Barack Obama, has been subject to a tug of war between Democrats and Republicans. Trump, in his first term, slashed the value of the social cost of carbon, a move Biden later reversed . Biden then directed agencies to fold the metric into their procurement processes and environmental reviews. The US began relying on the cost estimate in 2010, offering a way to estimate the full costs and benefits of climate-related regulations. The Biden administration estimated the global cost of emitting CO2 at $120-$340/metric tonne and included it in rules related to cars, trucks, residential appliances, ozone standards, methane emission rules, refineries and federal oil and gas leases. By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Carbon credit method may limit Australia's ACCU supply


09/05/25
09/05/25

Carbon credit method may limit Australia's ACCU supply

Sydney, 9 May (Argus) — A potentially ineffective design of the long-delayed Integrated Farm and Land Management (IFLM) method developed by the Australian federal government might exclude thousands of landowners from the Australian Carbon Credit Unit (ACCU) market, curbing potential supply, industry participants have warned. The IFLM method, the first in Australia to combine multiple activities that store carbon in soil and vegetation in a single method , could be potentially set with a "binary framework" classifying land types as either cleared or uncleared, following a recent update from the Department of Climate Change, Energy, the Environment and Water (DCCEEW). But focusing on a single binary factor misses a broad range of other important influences, such as fire, over grazing, soil disturbance, feral animal impacts and climate events, co-chief executive of carbon project developer Climate Friendly, Skye Glenday, told Argus . It would particularly affect rangeland areas which cover around 70pc of Australia and include a large proportion of the Indigenous Estate, she added. The cleared/uncleared definition overlooks large areas of degraded land in Australia and is "not helpful" in understanding why the land is in that condition, carbon developer Australian Integrated Carbon (Ai Carbon) chief executive Adam Townley told delegates this week at lobby group Carbon Market Institute (CMI)'s Carbon Farming Industry Forum in New South Wales. A narrow definition of cleared and uncleared land effectively locks out large portions of the carbon market, decimating Western Australia, South Australia and the Northern Territory, Townley said. A CMI taskforce led by Glenday and Townley is recommending that the DCCEEW instead use the Vegetation Assets, States and Transitions (VAST) framework, which is already used by the Australian government to classify and report on the condition of native vegetation in its flagship State of Environment reports. This condition-based approach would allow developers to establish projects in large areas of existing native vegetation that are significantly degraded because of Australia's land-use history, but which still have forests and woodlands, according to the taskforce. The projects would then be able to restore health and increase carbon storage within these areas, the taskforce claims. Transition potential The right framework could incentivise between two-thirds and three-quarters of the registered land projects in eligible methods to transition to the future IFLM method, according to Glenday. Eligible methods would start with the key human-induced regeneration (HIR) ACCU method, which expired on 30 September 2023, as well as the Environmental Plantings (EP) and soil carbon methods. There are around 2,000 land-based projects registered, with about 400-500 in HIR, 50-100 in environmental plantings, and around 700 or more in soil. The number of projects that will transition will likely depend on the final transition rules and the package of activities each land manager wants to undertake, Glenday told Argus . Carbon developer Regenco will explore the potential of migrating all its HIR projects into the IFLM method, managing director and chief executive Greg Noonan told Argus on the sidelines of the CMI event. Transitioning to the new method would allow existing projects to have much larger land areas accountable for carbon sequestration, compared with around just 20pc on average under the HIR method, although decisions would depend on the additional ACCU generation potential for each project to compensate for migrating costs, Noonan said. Some developers said they will also consider transitioning their projects, but others expressed frustration and scepticism over the timeframe and final determination of the method, which was first proposed in 2019. There is a clear urgency in discussing new ACCU methods under consideration to address a current shortfall in availability of land-based methods that is restricting industry investment and engagement, CMI chief executive John Connor said. But delegates welcomed the policy certainty provided by the re-election of the Labor government , he added. "We're very hopeful that the IFLM method is legislated this year, and that's what we're working towards with all the stakeholders," Glenday said. But it would take at least up to nearly three years for the first IFLM projects to go from implementation to first ACCU issuances, she added. ACCU generic, generic (No AD) and HIR spot prices ended the week to 9 May at A$35 ($22.50), dropping slightly from a week earlier as the market failed to receive a boost from the Labor party's re-election. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australian firms flag coal phase-out timeline concerns


09/05/25
09/05/25

Australian firms flag coal phase-out timeline concerns

Sydney, 9 May (Argus) — Energy utilities raised concerns that Australia's coal-fired power generation phase-out might be running on an unrealistic timeline, according to submissions to the National Electricity Market (NEM) review consultation process. Utilities AGL Energy, Alinta Energy, Delta Energy, Energy Australia, Origin Energy and Stanwell — which operate 10 of the 20 coal-fired power plants in Australia (see table) — submitted separate recommendations to the consultation launched late last year looking at wholesale market settings. This came after the conclusion of the Capacity Investment Scheme (CIS) tenders in 2027, and as Australia transitions to more renewables from its aging coal-fired plants. The Australian Energy Market Operator (Aemo) forecast the country will exit all coal-fired generation by 2038 in its Integrated System Plan (ISP) published in 2024. But Delta Energy predicts that this timeline will not be met, and views ISP's priority as emissions reduction targets rather than a realistic timeline. Insufficient capacity to replace the coal plants was a common issue flagged by these companies, with AGL saying this is partly because of uncertainty in the market leading to less investments. The utility plans to close all its coal plants by the end of June 2035. AGL was Australia's largest emitter of greenhouse gas emissions in the 2024 financial year, according to the Clean Energy Regulator (CER), followed by Stanwell, Energy Australia and Origin Energy. The transition could be supported using flexible dispatchable resources, according to Origin Energy. The coal phase-out means more variable renewable energy (VRE) is required, but VRE output will not necessarily match demand. "The NEM review must also consider the actions to facilitate the planned retirement of coal-fired power stations from the energy system, which will still be occurring in the NEM beyond the CIS," Stanwell warned. "The urgency of developing solutions cannot be overstated, as any indecision now would result in increased government intervention later, and a disorderly and costly NEM beyond the CIS." Gas-fired generation A few firms view gas-powered generation as critical in the transition away from thermal coal and in maintaining system reliability. It will provide back-up in times of renewable droughts, said Stanwell and AGL, and should be noted in discussions of the forward strategy. But Alinta Energy is cautious of the costs of gas-fired power plants, believing them to be the least costly for customers but not economically viable because of their exposure to global gas market prices. Alinta's suggestion is to reduce the market's dependence on high-cost facilities including gas-fired facilities. Mixed views on capacity market Some companies mentioned a capacity mechanism as a solution. Coal-fired facilities should be allowed to continue until they can be replaced, said Alinta Energy, and gas power plants are necessary. Energy Australia and Delta are calling for the NEM to stay technologically neutral in this process, keeping thermal coal exits in mind. A capacity market needs to be sustainable without government subsidies, Alinta Energy said, and exit strategies for government intervention should be clear from the beginning. But capacity markets can lead to higher costs for customers, according to AGL, because of potential over-procured capacity. "If a capacity mechanism was implemented, it would be important to consider the impact of any capacity incentive on the operation of the NEM and the appropriate level of the market price settings — a balance that may be difficult to strike," AGL noted. The expert independent panel leading the review will continue carrying out consultation, and is expected to make final recommendations to energy and climate ministers in late 2025. By Susannah Cornford Australia coal fired power plant closures in NEM Plant Capacity (MW) Owner Closure date State Emissions CER 2023/24 year Scope 1 & 2 of CO2e Eraring 2,880.0 Origin 2025 NSW 13,550,220.0 Yallourn 1,480.0 Energy australia 2029 Vic 10,502,080.0 Callide B 700.0 CS Energy 2029 Qld 4,028,161.0 Total by 2030 5,060.0 28,080,461.0 Coal plant closures in NEM after 2030 Bayswater 2,640.0 AGL 2030-33 NSW 13,712,719.0 Vales Point 1,320.0 Delta 2033 NSW 7,111,963.0 Stanwell 1,460.0 stanwell 2035 Qld 6,982,204.0 Tarong 1,843.0 Stanwell 2035 Qld 10,936,021.0 Kogan 740.0 CS Energy 2035 Qld 4,522,472.0 Callide C 825.0 CS Energy 2035 Qld 688,038.0 Loy Yang A 2,210.0 AGL 2035 Vic 18,723,707.0 Sub-total 11,038.0 62,677,124.0 Total by 2030 16,098.0 90,757,585.0 CER Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

New Zealand’s Fonterra starts electrode boiler


09/05/25
09/05/25

New Zealand’s Fonterra starts electrode boiler

Sydney, 9 May (Argus) — New Zealand dairy co-operative Fonterra has turned on an electrode boiler at its Edendale plant and commissioned two more. This will help reduce CO2 equivalent (CO2e) emissions by 72,800 t/yr from 2027. The co-operative's three boilers will replace coal-fired systems and be powered by renewable energy generated at Edendale, it said on 7 May. Emissions reductions from the plant will account for 4pc of Fonterra's target of a 50.4pc reduction in scope 1 and scope 2 emissions relative to 2018 levels by 2030. The co-operative has committed NZ$70mn ($41.3mn) to build the Edendale boilers, with additional co-funding from New Zealand's Energy Efficiency and Conservation Authority (EECA). Fonterra's on-farm emissions are excluded from New Zealand's emissions trading system , but its coal boilers fall under the scheme. The co-operative has been moving away from coal boilers since 2018, reducing its CO2e emissions by 200,400 t/yr through six conversions. Fonterra has converted coal boilers into wood-fired and electrode boilers in collaboration with EECA. Its 2020 Te Awamutu coal-to-biomass boiler conversion led to a 98.4pc decline in CO2e emissions, from 90,395 t/yr to 1,425 t/yr, according to an EECA study. Fonterra was looking for 80,000-100,000t of Vietnamese wood pellets on a one-year contract starting in mid-2025 as it moves away from fossil fuels to renewables, market participants told Argus in December 2024. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mitsubishi joins Philippine coal plant phaseout project


09/05/25
09/05/25

Mitsubishi joins Philippine coal plant phaseout project

Osaka, 9 May (Argus) — Japanese trading house Mitsubishi has agreed to join a project to phase out a coal-fired power plant in the Philippines, aiming to generate carbon credits through the Transition Credits mechanism along with Japan's Joint Crediting Mechanism (JCM). Mitsubishi and and its Hong Kong-based subsidiary Diamond Generating Asia (DGA) has agreed to join Philippine energy firm Acen, GenZero — a subsidy of Singapore state-owned investment firm Temasek — and Singapore conglomerate Keppel to phase out the 246MW South Luzon coal-fired plant in Batangas, the Philippines, and replace it with a clean power facility. The initial deal for this project was signed by Acen, GenZero and Keppel in August 2024. Acen is now seeking to decommission the coal-fired plant by 2030, instead of the previous target of 2040. It is still unclear what types of clean power sources will then be deployed. But renewables such as solar or onshore wind, alongside storage batteries, could be possible, a Mitsubishi spokesperson told Argus . The partners aim to leverage Transition Credits (TCs) for the early retirement of the plant. TCs are high-integrity carbon credits generated from the emissions reduced through retiring a coal-fired plant early and replacing this with clean energy. The South Luzon project is expected to be one of the first converted coal-fired plants in the world to generate TCs. The project is expected to generate carbon credits equivalent to 19mn t of CO2 emissions reduction over 10 years, the Mitsubishi spokesperson told Argus . Mitsubishi plans to include this project in the JCM mechanism, as the Philippines has been Japan's JCM partner country since January 2017. The company is already marketing the carbon credits in Japan, assuming the credits will be verified under the JCM, while also hoping to sell them in Singapore and the Philippines. Verified carbon reductions or removals under the JCM can be quantified on an international basis. Some of the JCM credits issued from such mitigation efforts will be used to achieve Japan's nationally determined contributions (NDCs), while ensuring double counting is avoided on the basis of corresponding adjustments between countries and consistency with the guidance on co-operative approaches referred to in Article 6.2 of the 2015 Paris climate agreement. JCM credits could be also traded under the Japan's green transformation emission trading system (GX-ETS), which will be officially launched in autumn of 2027 . The GX-ETS adopts the cap-and-trade programme, with the government allocating free allowances for each eligible entity every year. Japan is still highly dependent on coal-fired generation, although Tokyo has pledged to phase out inefficient coal-fed plants by 2030. Coal-fired output accounted for 32pc of the country's total power generation in 2024, according to data from the trade and industry ministry. When asked by Argus where there is the potential for the introduction of the Transition Credits mechanism in Japan, the spokesperson said Mitsubishi has not ruled out the possibility, but added there have been no discussions on this for now. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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