Global Coal Markets

IEEFA Research

IEEFA Australia: Adani Is Said to Seek Financing From a Chinese State-Owned Enterprise

'New Geopolitical Questions for an Already Highly Controversial Project'

Nov. 2, 2017 (IEEFA) — A Chinese government-owned enterprise is being courted as a new partner for Adani’s proposed Carmichael coal mine and rail project in northern Queensland, according to a research brief published today by the Institute for Energy Economics and Financial Analysis (IEEFA). The deal being sought with state-owned China Machinery Engineering Corporation […]

November 2, 2017 Read More →
IEEFA Report: Endesa’s Plan to Upgrade Aging Spanish Coal Plants Puts €400 Million in Shareholder Wealth at Risk

IEEFA Report: Endesa’s Plan to Upgrade Aging Spanish Coal Plants Puts €400 Million in Shareholder Wealth at Risk

New Emissions Rules Loom Large Across EU; Gas-Fired Generation and Renewables Present Better Investment Opportunities; Major Utilities Are Out of Step With Markets

October 25, 2017 (IEEFA.org) — A research paper published today by the Institute for Energy Economics and Financial Analysis finds that plans by Enel Group’s Spanish-subsidiary Endesa to sink €400 million into upgrading three aging coal-fired plants is a likely loss-making proposition under new European Union emission-control rules. The report—“How European Utilities Can Capitalize on […]

October 26, 2017 Read More →

IEEFA Australia: Escalating Financial Risk in Adani’s Abbot Point Coal Terminal

Begging the Question as to Why the Government Would Lend Heavily to a Tax-Haven Scheme Controlled by a Foreign Billionaire

Oct. 2, 2017 (IEEFA) — New analysis by The Institute for Energy Economics and Financial Analysis (IEEFA) finds that Adani’s Abbot Point Coal Terminal is excessively leveraged, promises negative shareholders equity, and runs the risk of becoming a stranded asset if Adani’s proposed Carmichael mine does not get the A$1 billion Australian taxpayer subsidy it […]

October 2, 2017 Read More →
IEEFA Australia: Hume Coal Proposal Will Be Left Behind as Energy Markets Move On

IEEFA Australia: Hume Coal Proposal Will Be Left Behind as Energy Markets Move On

New Coal Mine Makes Even Less Sense than It Did Last Year; Hume Will Find it Hard to Compete with Higher-Quality Coking Coal

Despite the significant increase in coking coal prices that began in late 2016, the proposed Hume Coal project in the Southern Highlands of New South Wales seems no more likely to proceed now than it did when IEEFA reviewed it ten months ago. Hume Coal, a subsidiary of South Korea’s largest steel maker POSCO, has […]

IEEFA Report: State-Owned Utility NTPC Takes a Lead Role in India’s Electricity Transition

IEEFA Report: State-Owned Utility NTPC Takes a Lead Role in India’s Electricity Transition

Country’s Largest Generation Company—Ranked Third Globally in Coal-Fired Capacity and Seventh in Generation—Emerges as Key Supporter of Government’s Renewable-Energy Initiative

May 25, 2017 (IEEFA.org) — The state-owned Indian utility NTPC is playing a key role in India’s push toward retooling its electricity-generation system, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA). The report—“NTPC as a Force in India’s Electricity Transition: Leading the Way Toward a New Energy Economy”—details how […]

IEEFA Update: An Increasingly Cursed Australian Coal Project

IEEFA Update: An Increasingly Cursed Australian Coal Project

Bad Financials, Weak Markets, Policy Headwinds, Social-License Issues, Transparency Questions, Climate Risk: The Many Afflictions Hobbling the Proposed Carmichael Mine

IEEFA has released an update today on Adani’s long-festering coal mine project in northern Queensland that plumbs the depths of the Indian conglomerate’s financials and finds them vastly insufficient for the supposed job at hand. Our report— “Adani: Remote Prospect: Carmichael Status Update 2017”—follows on previous work we’ve done around what would be the biggest new coal […]

IEEFA Europe: Can Coal Power Hang On?

IEEFA Europe: Can Coal Power Hang On?

Investors May Not Be Eager to Absorb More Losses Like Those Seen in Recent Dutch Build-Outs

Investment in new coal-fired power plants appears off the agenda in Western Europe. Witness the astonishing write-down of brand-new assets in the Netherlands, where European utility giants RWE, Uniper, and Engie have drastically reduced their valuations of plants barely a year old (read the report we published this morning, “The Dutch Coal Mistake,” which concludes […]

November 30, 2016 Read More →
IEEFA Update: IEA, Still Behind the Curve, Nonetheless Indicates Rising Stranded-Asset Risk in Fossil-Fuel Holdings

IEEFA Update: IEA, Still Behind the Curve, Nonetheless Indicates Rising Stranded-Asset Risk in Fossil-Fuel Holdings

A Not-So-Distant Future in Which Thermal-Fired Electricity Generation Declines Precipitously

The International Energy Agency, out with its annual energy-markets forecast, “World Energy Outlook 2016,” remains behind the curve but not as far behind as it was. A history of IEA underestimation of technology change has been partially remedied in this new report, but the agency’s solar and wind forecasts can at best be described still […]

November 17, 2016 Read More →
IEEFA Report: Three Timely Takeaways on 2016 Global Energy Transformation

IEEFA Report: Three Timely Takeaways on 2016 Global Energy Transformation

An Acceleration to Renewables, Faster-Than-Expected Shifts Regionally and Nationally, Growing Risk for Investors Who Lag Behind

Three notable takeaways emerge from the rapid transformation of the global energy economy, as we detail in a new paper we published today as the landmark Paris Agreement officially goes into effect. The global transition to renewables is accelerating. Change is happening faster than expected. Those left behind in this transition face growing financial risk. […]

November 5, 2016 Read More →
IEEFA Europe: Blueprint for a Lignite Phase-Out in Germany

IEEFA Europe: Blueprint for a Lignite Phase-Out in Germany

Foundation-Based Approach to Closure and Clean-Up; New Czech Owners of Vattenfall Assets in Lausitz Can Afford to Foot the Bill; a Timeline That Helps Local Communities Prepare for Transition

The recent “sale” by the Swedish state-owned utility Vattenfall of its German lignite assets throws a harsh light on a dark paradox: the continued use of the world’s most carbon-intensive fuel by a country with some of the most ambitious targets to tackle climate change. The deal transfers a cluster of lignite mines and their […]

September 22, 2016 Read More →

More News and Commentary

Commentary: What China Giveth to U.S. Coal, China Can Taketh Away

Reuters: If China does seek a way to retaliate against U.S. proposals to impose import curbs on steel and aluminium, then targeting President Donald Trump’s favoured coal would be tempting. One of Trump’s key campaign promises in the 2016 election victory was to end the war on what he termed “beautiful, clean” coal. Figures released […]

February 23, 2018 Read More →
IEEFA Asia: ASEAN Coal Companies Are Shaking Their Stranded-Asset Cup at Debt Investors

IEEFA Asia: ASEAN Coal Companies Are Shaking Their Stranded-Asset Cup at Debt Investors

Signs of Growing Skepticism Among Bond Buyers

This year—2018—is when we’ll see whether emerging-market debt investors are ready to start pricing the impact of climate change risk on their investments by discounting the backward-looking coal demand scenario promoted by the International Energy Administration (IEA). Likewise, power-industry planners across the Association of Southeast Asian Nations (ASEAN) have been caught in an information air […]

February 5, 2018 Read More →

‘Halcyon Days’ of Coal Trading Are Past

Bloomberg News: The halcyon days of coal trading seem to be over as buying and selling of the world’s most widely used power-plant fuel plunged last year. For years the coal market defied a global pushback against the commodity by lawmakers and some of the world’s biggest money managers. After buying and selling almost tripled […]

February 1, 2018 Read More →
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IEEFA Europe: A Regulatory Blow to Spain’s Subsidized Coal-Fired Electricity Sector

Security-of-Supply Justifications Are Seen as Political Schemes to Support the Status Quo

In its rejection this week of a government proposal to prop up the nation’s oldest and most polluting coal power plants, Spain’s energy regulator has concluded that a “significant part” of the country’s coal fleet can be closed without risking national energy security. The decision, detailed in a statement by the Comisión Nacional de Mercados […]

Investor Signal: Philippine Coal Tax

Interaksyon: The passage of the coal tax increase in the Philippines gives a clear signal to investors that the country is leading the ASEAN transition to clean energy. This is important as it gives new policy impetus for the private sector to invest in abundant yet underdeveloped wind resources. And it’s already happening. Meralco PowerGen […]

January 22, 2018 Read More →
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IEEFA Update: Adani Stumbles Toward the Last-Chance Saloon

Denied by Its Erstwhile Enablers, an Indian Mining Giant in Australia Is Desperate for Help

The prospect in the New Year for Adani’s proposed Carmichael coal-mine proposal has taken a bleaker-than-ever bent. Following the Queensland government’s veto of the proposed A$1 billion government loan subsidy and after multiple Chinese banks ruled out funding the project, more nails have been driven into the project’s coffin. A month ago yesterday, Downer EDI, […]

China’s Shanxi Province to Cut Coal Production

Reuters: SHANGHAI—China’s Shanxi province, responsible for about a quarter of the country’s total coal output, will cut its production capacity by 23 million tonnes this year as part of its efforts to streamline the sector, it said on Friday. Shanxi, which produced 832 million tonnes of coal in 2016, has been part of a national […]

January 19, 2018 Read More →

Lanco Close to Escaping Disastrous Griffin Purchase

The West Australian: Indian group Lanco Infratech has escaped a $200m payment linked to its disastrous purchase of the Griffin coal mine as part of a confidential settlement of one of [Western Australia’s] biggest commercial court cases. The settlement late last year coincided with insolvency firm KordaMentha flagging a final distribution of about $80m to […]

January 12, 2018 Read More →

U.K. Details Plans For 2025 End To Coal Generation

The Guardian: One of the UK’s eight remaining coal power stations is expected to cease generating electricity this year, the government has said as it laid out new rules that will force all the plants to close by 2025. The coal phase-out is one of the Conservative party’s flagship green policies, and thelong-awaited implementation plan […]

January 9, 2018 Read More →

Insurance Looms As Major Issue For New Coal Plant Construction

Financial Times: The world’s biggest insurers are opening up a new front in efforts to cut down on coal use by refusing to offer cover to miners and power generators that use the polluting fuel. A range of investors, including insurance companies and pension funds have cut or eliminated holdings in companies that make money […]

January 8, 2018 Read More →