Page 14 - AsiaElec Week 24 2021

AsiaElec NEWS IN BRIEF AsiaElec

Between them, Stanwell Corporation and insurer in South Korea and called on 11 Korean insurers to stop
CS Energy operate the bulk of Queensland’s underwriting the construction and operation
coal fired generation fleet. In November 2020, Samsung Fire & Marine of new coal-fired power plants and phase out
QCC examined the whole of the two became the first major Asian insurance existing coal insurance. The campaign will
company’s businesses, including their retail company to publicly announce an end publish the responses of each insurer on its
electricity businesses, but found that the to insuring new coal-fired power plants. website on June 21st.
emergence of competing clean energy projects However, recent coal insurance data
and falling wholesale electricity prices would from Korea Electric Power Corporation’s
diminish their profitability within just a few (KEPCO’s) subsidiaries indicates Samsung
years. F&M remains the biggest coal insurer COAL
“This analysis only looks at operating questioning the validity and effectiveness of its
profits to 2024-25. Beyond 2025, profits coal policy. Vietnam’s May coal imports
could continue to tumble. Renewable energy, 2020 was the beginning of Korean
particularly through the NSW Roadmap, is companies cutting ties with coal, and Samsung decline
likely to keep prices flat or falling beyond was no exception. In October 2020, a member
2025,” the QCC report says. of the National Assembly, Greenpeace Korea Vietnam’s coal imports nearly halved in
“Queensland’s coal generators will also and the Korea Sustainability Investing Form May from a year earlier, as a steady rise in
require more maintenance. AEMO expect (KoSIF) published a report that traced Korea’s hydropower and renewable energy output
Stanwell to have to invest more than $1bn coal finance from 2009 to 2020. Data from the pressured coal burn.
in routine refurbishments of Stanwell and report identified Samsung insurance units as Seaborne receipts declined for a sixth
Tarong power stations between 2025 – 2030. the largest coal financiers among the Korean straight month in May from a year earlier
The Callide C4 incident demonstrated the private sector. to 3.81mn tonnes, provisional customs data
vulnerability of coal to catastrophic and Under pressure from NGOs and investors, show, falling from a record monthly high of
expensive failure.” in November 2020, Samsung adopted a coal 7.19mn tonnes in May 2020, Argus reported.
“Stanwell’s coal revenue sharing agreement policy and announced it would no longer Imports were also down from 3.94mn t
with Coronado will end in 2026. Under our insure and invest in new coal projects. in April. Vietnamese customs data do not
analysis, this arrangement is the only thing Civil society groups welcomed Samsung’s differentiate between coking and thermal coal.
keeping Stanwell in profit from 2023-24,” it announcement, but also questioned its The drop comes off a high base in May
adds. validity and requested the following further 2020 when Vietnam’s strategy to curb the
Stanwell Corp’s portfolio includes the information on the details of the policy: spread of Covid-19 ensured broad business
1,460MW Stanwell power station and the Samsung F&M has yet to confirm the continuity and supported demand for
1,400MW Tarong coal plant, while CS Energy details of its coal policy and these questions seaborne coal, helping to take the country’s
operates the 750MW Kogan Creek power remain unanswered. This tactic of no response overall 2020 imports to an all-time high. The
station and owns a majority of the 1,525MW is not isolated to Samsung F&M. Samsung decline last month underscores softness in
Callide power station complex. All of the C&T, the construction & trade wing of the the country’s demand for imported coal amid
generators run on black coal. Samsung conglomerate, also failed to respond stable growth in generation from alternative
to the NGO request to close loopholes in its sources such as hydropower and renewables.
coal exit policy. This trend may continue for some time as
It didn’t come as a surprise to find out seaborne coal prices are hovering at multi-
COAL that Samsung F&M remains the largest coal year highs, with elevated freight rates also
insurer in Korea. On June 7th, the Korea curtailing demand.
Samsung biggest coal Beyond Coal campaign released the insurance was at 5.62TWh, up from 4.18TWh a year
Vietnam’s hydropower generation in May
data from coal plants of KEPCO’s subsidiaries

P14 www. NEWSBASE .com Week 24 16•June•2021