Over the course of the last half century, the image of smoke stacks spewing soot from a coal plant on the western edge of Jersey City have become ingrained in the consciousness of it’s residents. The Hudson Generation Station has provided electricity for the region longer than most of it’s residents have been alive but that all changed this week. The power plant which sits on a 250 acre site along the Hackensack River has long been in the crosshairs of environmental activists.
In an effort to remove themselves of the risks associated with climate change investors in wealthy nations have been selling their ownership of coal reserves. The bulk of this ownership has been purchased by investors from the still developing nations of China and India where the governments state coal will be needed for decades to fuel growth. This transfer of assets is occurring despite China and India’s commitment to curb greenhouse gas emissions which are being blamed for warming the planet.
Higher prices in the coal market have caused suppliers to increase output. This increased output has created a forecasted excess of 16 million tonnes of coal on the market. While there is a possibility that increased power demands from countries such as Indonesia or Pakistan may absorb some of the excess, there is still a threat that market prices could fall further in the second half of the year.
Last year independent energy company Dynergy announced plans to shut down plants which produce 1835 megawatts of power in southern Illinois. However, these shutdowns may just be the beginning according to CEO Bob Flexon. Mr. Flexon stated Dynergy will need to decide by the end of the year whether it will fully exit the MISO Zone 4 wholesale power market in southern Illinois. The company has 5500 megawatts of generating capacity in this market.
This week Chinese authorities met with representatives of some of the largest power companies in the country to discuss the future of coal in China. A main topic of discussion in the meeting was the measures being taken to reduce the importing of low quality coal. China which is the largest consumer of coal in the world currently suffers from severe air pollution in many of its major cities, critic charge this is caused caused by power plants burning coal.
Pakistan announced plans earlier this week to meet the growing energy needs of the nation’s growing population through exploitation of its own natural resources. Water and power ministry officials revealed plans to work with Chinese companies and their partners in order to build up to a dozen coal fired power plants over the course of the next 15 years. The coal plants are just one part of a larger plan according to the former federal secretary for water and power Mohammed Younus Dagha.
Natural gas is quickly becoming the dominant source of electricity in many parts of the country. While it is plentiful, cheap, and causes less pollution than coal, can there be too much of a good thing? By placing to much reliance on single fuel source for the nations electricity usage are we essentially placing all… Keep reading →
Colorado may have found an interesting solution to the stranded assets that are relics of the transition to clean energy. Two Democratic lawmakers have proposed measures that would create ratepayer-backed, AAA rated, commercial bonds. These securities would be used by utilities to refinance retiring coal plants, of which there are many. The savings would be… Keep reading →
A major Australian coal producer is planning on significantly ramping up production levels of it’s coking-coal operations in eastern Australia. BHP Billiton Ltd. is gearing up for a major US $204 million expansion which is intended to increase production of coke, a vital ingredient in steel-making. The planned expansion should reduce overall operating costs while… Keep reading →
On Aug. 17, the U.S. Energy Information Administration (EIA) daily update announced that CO2 emissions from natural gas would soon surpass coal. That’s troubling. Natural gas is viewed as a “bridge fuel,” a transitional resource from carbon intensive coal and petroleum to… well, “to what” still remains the hard part. Renewables will be increasingly important.… Keep reading →
