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Indian coal imports rise 12.6% in 2019
INDIA
INDIA’S thermal coal imports rose 12.6% to nearly 200mn tonnes in 2019, according to Indian government data.
This is the second year in a row that ther- mal coal imports have risen, Reuters reported, despite repeated policy statements and efforts by the government to reduce shipments in a bid to cut pollution, prop up domestic production and promote renewables.
India is the world’s second-largest importer, and indeed consumer, of coal.
The figures showed that imports of thermal coal, the grade used for power generation, rose by 12.6% to 197.84mn tonnes in 2019.
However, this masks some monthly volatil- ity, whereby imports fell to below 2018 levels between August and October as demand shrank, driven by the contracting economy. In Novem- ber, in contrast, thermal coal imports were 12.3% above November 2018 at 17.65mn tonnes.
Imports of coking coal, used by steel manu- facturers, fell slightly to 51.33mn tonnes.
The data showed that Indonesia accounted for 60% of supplies, while South Africa sent 22% and Russian and Australia 5% each.
Rising coal imports contrasted with a 3% dip in coal-fired generation as power demand rose by just 0.8%, according to Central Electricity Authority figures. However, coal still accounted for 72% of the power mix, and demand from the power sector is set to continue to dominate the country’s coal policy in the coming years.
The higher imports compensated for declin- ing output by the country’s largest miner, state- owned Coal India Ltd (CIL), whose monthly output fell every month from July to November.
Other drivers of higher imports included increased purchases by private generator Adani Power.
The figures are bad news for the Indian Coal Ministry, which announced in February that the country would stop imports of thermal coal from the 2023-2024 financial year. New Delhi aims to do this by raising CIL’s output to the benchmark figures of 1bn tonnes per year (tpy).
Other measures to stimulate domestic pro- duction include improving rail transport from mines run by private companies and so-called captive miners, which supply only one customer, often a mine-mouth power plant.
Japan’s JERA takes 44% stake in Taiwan’s Formosa 3 wind farm
JAPAN
JAPAN’S JERA has increased its stake in the planned 2-GW Formosa 3 wind farm off Tai- wan to 43.75% after it bought shares from Mac- quarie’s Green Investment Group (GIG) and German utility EnBW.
The deal gives JERA greater exposure to Tai- wan’s booming offshore wind sector, and adds to its current partnership with GIG in the adjacent Formosa 1 (operating) and 2 (in construction) projects. It leaves GIG with 31.25% of Formosa 3, with EnBW’s interest falling to 25%. JERA did not make the financial terms of the deal public.
“EnBW is looking forward to JERA joining us in the Formosa 3 project. We are convinced that Formosa 3 will benefit from JERA’s local expertise and experience as project partner of Formosa 1 and 2,” said Dirk Güsewell, head of generation portfolio development at EnBW.
“EnBW has more than 10 years’ experience in offshore wind energy, being a pioneer and driv- ing force in Germany. Together with our part- ners, we aim to develop Taiwan’s largest offshore wind farm.”
The Formosa 3 venture aims to gain the rights to 2GW of offshore capacity in three separate
areas when Taiwan aims allocates up to 10GW of offshore capacity during its next licensing round. Formosa 3 achieved its environmental impact assessment approval in 2018.
Taipei has already awarded 5.5GW of off- shore rights.
“Taiwan is fast becoming Asia’s foremost offshore wind market. We’re extremely proud that through Formosa 3, and our working on a range of renewable energy technologies, our Tai- pei-based team are playing a key role in Taiwan’s green energy transition,” said Mark Dooley, global head of Green Investment Group.
JERA is a joint venture between major power generators TEPCO and Chubu Electric Power that was originally set up to import LNG.
It reported a net profit of JPY137.8bn ($1.26bn) for the period from April to Septem- ber, driven by strong earnings from its LNG trading operation.
However, it has now branched out into renewables, with a 25% interest in the UK’s 173- MW Gunfleet Sands wind farm. It aims to take as major role in the Japanese offshore sector when Tokyo holds its next wave of bidding rounds.
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