August 10, 2017 Read More →

On the Blogs: Coal Use Trends Continue to Drive Doubts on Adani Project in Australia

Macrobusiness Australia:

The justification behind the proposed $1 billion concessional loan from Australian taxpayers to Adani to build the Carmichael coal project has taken another hit today with reports that India’s appetite for coal is waning.

From The Australian:

“In the last two years, coal consumption has slowed to its lowest level in two decades, even with the economy growing at a steamy 7 per cent annual pace.

Thermal power plants have been running below full capacity for years and as of June were operating at only 57 per cent of total capacity, the lowest level ever…

‘India’s future coal demand could actually be near flat,’ said Tim Buckley, the Asia energy finance director for the Cleveland-based Institute for Energy Economics and Financial Analysis. ‘The technology-driven changes are happening faster than predicted.’

The developments come as Adani pushes ahead with its massive $16.5 billion Carmichael coal mine in Queensland, from where it plans to ship 60 million tonnes of coal a year to India.”

Blind Freddy can see that the Adani Carmichael Project risks becoming an unviable stranded asset, and Australian taxpayers risk losing their dough by lending $1 billion for the project.

Worse, the subsidised project would flood the world with more cheap coal, thus depressing its price, increasing global consumption (and exacerbating climate change), as well as putting non-subsidised mines in NSW and QLD out of business, resulting in job losses.

More: Waning Indian coal demand should doom Adani

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