August 8, 2020 Read More →

Adani continues talking up green revolution while Carmichael project continues

The Saturday Paper:

The coronavirus pandemic is roiling energy markets worldwide, triggering a slew of multibillion-dollar corporate losses, but Indian giant Adani’s vast Carmichael project in Queensland appears to sail on regardless of the laws of supply and demand or shifting investor sentiment against thermal coal.

A report this week from Global Energy Monitor found that, for the first time, the number of coal-fired power stations in the world reduced in the six months to June. It found this was due to the Covid-19 downturn and record closures in the European Union. The price of top-quality thermal coal from Australia has more than halved to $US51 a tonne and Glencore, the world’s biggest exporter of the fuel, just flagged it will need to slash production here. A third of its mines are operating in the red. 

“The commercial seaborne cost of coal is not materially relevant if you are a vertically integrated player,” says Tim Buckley, a director of energy finance studies at the US-based and philanthropically funded Institute for Energy Economics and Financial Analysis, which campaigns for sustainable energy and has opposed the Carmichael mine. “Whether the coal price is high or low, in a pit-to-plug strategy, which is what Adani originally started with and is still working towards, is effectively irrelevant.”

 [Paddy Manning]


More: Could Adani drop its Qld mine and head to NSW?

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