Page 7 - EurOil Week 25 2022

EurOil COMMENTARY EurOil

European Commission
president Ursula der
Leyen has urged
member states not to
return to coal.

of the population supported the energy source. As for Austria, the government has agreed
Meanwhile, the Dutch government said with energy firm Verbund on converting a
on June 20 it was removing a cap on coal-fired reserve gas-fired power plant to coal, to have on
energy production and initiated the first phase standby if Russia cuts off gas supply to the coun-
of an energy crisis plan. Its remaining coal-burn- try. This marks the first time such a conversion
ing facilities are due to be closed in 2023, and in will take place, with coal-fired power plants typ-
recent years their generation capacity has been ically getting converted to gas instead to reduce
capped at 35%. emissions.
The government defended the move stressing Italy too has raised the prospect of bringing
the need for the Netherlands to stock up on gas extra coal-fired capacity online.
supply ahead of winter. Its gas storage facilities These plans quite clearly run counter to the
are currently only 48% full, according to Gas goals of the EU’s Fit-for-55 legislative package,
Infrastructure Europe, meaning the country still aimed at aligning bloc policies across all eco-
has a considerable way to go to reach the EU’s nomic sectors with its target to curb greenhouse
target of 80% by November 1. gas emissions by 55% by 2030. And the Euro-
The Netherlands would be able to counter- pean Commission has said as much.
act the cut-off in Russian gas supply by restor- In an interview with the Financial Times,
ing production at Groningen, the largest field in European Commission President Ursula von
Western Europe, but this remains a highly con- der Leyen urged EU member states to resist
tentious issue. The field is undergoing a man- switching to coal-fired energy, calling on them
dated, phased closure, after years of production instead to prioritise “massive” investments in
activities causing earthquakes in the surround- renewables.
ing area, and is due to close completely next year. “We have to make sure that we use this crisis
While the government has said that it will to move forward and not to have a backsliding
consider turning some of Groningen’s wells on the dirty fossil fuels,” she told the newspaper.
back online in an emergency, it says that this “It is a fine line and it is not determined whether
plan is not currently being considered. Instead, we are going to take the right turn.”
the country is looking to fast-track several LNG However, while accelerating the expansion in
import projects. Belgian shipping company renewables is a laudable long-term goal, resum-
Exmar announced on June 20 that a floating ing operation at existing coal power plants can
storage and regasification unit (FSRU) for the deliver more immediate support to energy sys-
Netherlands’ under-development terminal in tems, despite the worrisome implications that
Eemshaven had arrived in the country. this will have for the environment. ™

Week 25 23•June•2022 www. NEWSBASE .com P7