Thanks Joe Biden
2022-10-09 22:30:17 UTC
European countries poised to use more coal in winter
Share of coal in power generation could reach above 20% by year end,
Euracoal secretary-general says
BRUSSELS
Many European countries plan to burn more coal this winter due to the
energy crisis, according to the Secretary-General of the European
Association for Coal and Lignite (Euracoal) Brian Ricketts on Tuesday.
Ricketts told Anadolu Agency that many European countries, including
Germany, France, Italy, Spain, the Netherlands, Austria, Poland, Hungary,
Czechia, Greece and the UK have the potential to generate electricity from
coal, given that they can either reopen coal power plants or extend their
operating period.
Despite the energy crunch, he said that Europeans do not consider coal as
a "knight in shining armor", but merely "a welcome arrival on the scene."
He argued that reliance on imported gas was a mistake and the European
Commissions stance is to pursue the renewables agenda even harder.
Nonetheless, he recommended that the EU take steps to relax certain coal
regulations to mitigate the negative effects of the energy crisis and fill
the gap left by natural gas.
"The whole point of the actions that we are taking is to maintain some
sort of stability during a difficult situation," he said.
Uncertainties caused by the Russia-Ukraine war have given rise to
unprecedented gains in natural gas and electricity prices and coal prices
have not escaped, quadrupling over the last year to as high as over $400
per ton.
Nonetheless, Ricketts anticipates that coal prices for September future
contracts in European markets, which are currently trading at $405 per ton
from $100 in this period last year and $60 a year earlier, would not
sustain at this level.
"It is impossible to make any predictions from where we are. You've seen
how spiky prices have been. So, prices are firstly at historic high levels
and secondly, very volatile. So you cannot make predictions in such a
market," he said.
He expects that the share of coal in electricity production in the EU,
which stood at 15% overall last year, could rise to over 20% by the end of
the year.
The EU imposed a coal import ban starting from mid-August within the scope
of its sanctions against Russia, resulting in high coal stocks at ports.
Before the sanctions, Russia was the country that supplied the most coal
to EU countries, marking about 25% of its coal exports.
The EU was dependent on Russia for 45% of its coal imports and 70% of its
thermal coal supplies.
Currently, alternative coal imports come from the US, which stepped up its
exports but not by as much as expected, while Indonesia has also been
supplying a lot more coal to Europe.
Coal transport has already been hampered by internal supply disruptions
within the EU from low water levels on big canals that are used to ship
coal, putting bottlenecks on railways.
According to data from the Russian Ministry of Energy, Russia sold 48.7
million tons of coal to the EU in 2021.
*Writing by Ebru Sengul Cevrioglu
https://www.aa.com.tr/en/economy/european-countries-poised-to-use-more-
coal-in-winter/2667436
Share of coal in power generation could reach above 20% by year end,
Euracoal secretary-general says
BRUSSELS
Many European countries plan to burn more coal this winter due to the
energy crisis, according to the Secretary-General of the European
Association for Coal and Lignite (Euracoal) Brian Ricketts on Tuesday.
Ricketts told Anadolu Agency that many European countries, including
Germany, France, Italy, Spain, the Netherlands, Austria, Poland, Hungary,
Czechia, Greece and the UK have the potential to generate electricity from
coal, given that they can either reopen coal power plants or extend their
operating period.
Despite the energy crunch, he said that Europeans do not consider coal as
a "knight in shining armor", but merely "a welcome arrival on the scene."
He argued that reliance on imported gas was a mistake and the European
Commissions stance is to pursue the renewables agenda even harder.
Nonetheless, he recommended that the EU take steps to relax certain coal
regulations to mitigate the negative effects of the energy crisis and fill
the gap left by natural gas.
"The whole point of the actions that we are taking is to maintain some
sort of stability during a difficult situation," he said.
Uncertainties caused by the Russia-Ukraine war have given rise to
unprecedented gains in natural gas and electricity prices and coal prices
have not escaped, quadrupling over the last year to as high as over $400
per ton.
Nonetheless, Ricketts anticipates that coal prices for September future
contracts in European markets, which are currently trading at $405 per ton
from $100 in this period last year and $60 a year earlier, would not
sustain at this level.
"It is impossible to make any predictions from where we are. You've seen
how spiky prices have been. So, prices are firstly at historic high levels
and secondly, very volatile. So you cannot make predictions in such a
market," he said.
He expects that the share of coal in electricity production in the EU,
which stood at 15% overall last year, could rise to over 20% by the end of
the year.
The EU imposed a coal import ban starting from mid-August within the scope
of its sanctions against Russia, resulting in high coal stocks at ports.
Before the sanctions, Russia was the country that supplied the most coal
to EU countries, marking about 25% of its coal exports.
The EU was dependent on Russia for 45% of its coal imports and 70% of its
thermal coal supplies.
Currently, alternative coal imports come from the US, which stepped up its
exports but not by as much as expected, while Indonesia has also been
supplying a lot more coal to Europe.
Coal transport has already been hampered by internal supply disruptions
within the EU from low water levels on big canals that are used to ship
coal, putting bottlenecks on railways.
According to data from the Russian Ministry of Energy, Russia sold 48.7
million tons of coal to the EU in 2021.
*Writing by Ebru Sengul Cevrioglu
https://www.aa.com.tr/en/economy/european-countries-poised-to-use-more-
coal-in-winter/2667436