Chill Hangs Over Coal Market

AFTER a year of sliding prices, mining policy uncertainty and labour unrest, the JSE’s coal mining index has taken a severe bruising. The outlook for next year is no better, as China’s coal offtake remains weak, nations have agreed at the recent climate talks to cut carbon emissions, and SA faces increased political flux.

The latest International Energy Agency report, released in the middle of last month, suggested that by 2040, oil and coal would lose 9% of the global energy mix, offset by increased share from renewables, nuclear and gas. Renewables would overtake coal as the main source of electricity by the early 2030s. By 2040, coal would account for only 30% of electricity generation.

For coal companies operating in SA, challenges have mounted this year. Benchmark coal export prices at the Richards Bay Coal Terminal have fallen to $49/tonne from about $66/tonne in January.

The Mineral and Petroleum Resources Development Act Amendment Bill has stalled and a new minerals minister with no mining background was appointed in September.

A new CEO, Brian Molefe, was appointed at Eskom, which accounts for most of the domestic coal market. Mr Molefe is taking a hardline position on new coal contracts. For all mining companies, the costs of electricity, labour and imported materials have risen faster than inflation this year.

The biggest contributor to the JSE’s coal index is Exxaro, which is under pressure from its iron ore earnings as well as coal. The news from smaller coal miners has been mixed, with boardroom upheavals at Wescoal and Resource Generation, but progress by Coal of Africa in advancing its Makhado project and funding.

In an environment of weakening prices, all companies are trying to improve their margins. Glencore put its loss-making Optimum Coal mine into business rescue in August and Anglo American plans to sell some of its thermal coal interests in SA.

Read full article here

 

South Africa Needs to Start Ridding itself of its Coal Addiction

The new Paris climate treaty, which countries adopted in December, will transform the global economy. Already analysts are calling the deal a game changer for humanity.

As a signatory to the Paris agreement, South Africa will now have to start ridding itself of its coal addiction little by little. But huge questions remained on how the country would implement this Paris agreement back home.

The deal is quite ambitious, including a new stretch goal of keeping warming below 1.5°C to accompany the current hard limit of 2°C.

Once back home, countries will start to pursue the plans laid out in their domestic climate commitments, which will go into effect in 2020. And more ambition is in the pipeline.

Countries will meet again in 2018 to assess and potentially adjust their national commitments to phase out fossil fuels in their economies by 2050.

Delegates at the climate talks have not had an easy time to construct the historic agreement, and the conference ran into overtime on Saturday. Bleary-eyed negotiators wandered the halls of Le Bourget, the conference centre in northeast Paris, where the negotiations were held.

Ban Ki-moon, the UN secretary-general, admitted that this year’s talks were the most complicated and difficult negotiations he had ever been involved in. Civil society, which is usually scathing about what the talks deliver, was quite optimistic about the Paris agreement.

Sam Barratt of advocacy group Avaaz said getting 200 countries to agree on anything was tough.

“Getting them to agree on the future of the planet … is probably one of the toughest pieces of negotiation they’ll ever get involved in.”

But he said that Paris had indeed delivered “a turning point in history, paving the way for the shift to 100% clean energy that the world wants and the planet needs”.

Climate activist group 350.org’s co-founder Bill McKibben said every government now seemed to recognise that the fossil fuel era had to end, and soon.

“But the power of the fossil fuel industry is still reflected in the text, which drags out the transition so far that endless climate damage will be done,” he said, adding that while the deal didn’t save the planet, it may have saved the chance of saving the planet.”

The stakes were high in establishing a deal. Major developing economies China and India, with whom South Africa is closely aligned, accused rich countries of trying to railroad them into a deal that would damage their economies.

Along with South Africa, these countries insisted that no deal could be signed without rich countries committing to help finance developing countries’ switch to a low-carbon economy. They insisted that rich countries should shoulder the blame for historical warming and use their allocation of the world’s carbon budget to help developing nations.

Jackson Mthembu, chairperson of the parliamentary portfolio committee on environmental affairs, told City Press South Africa needed to be resilient in the face of climate change and that capacity could only come from getting the necessary technologies and funds.

South Africa has committed to reducing its emissions by 34% by 2020, and 42% by 2025, on condition it receives the financing to do so.

Mthembu said Parliament would play a critical role in enforcing the Paris agreement.

“It will indeed be a very painful process,” he admitted. “But we need the strong legislation to do this. We have to legalise South Africa’s pledges at the conference into a strong legal framework back home. We will also engage industry to make this happen.”

He said South Africa had already begun work, and the country’s successful renewable energy programme was a beacon of hope. However, he insisted that the political will existed to put South Africa on a low-carbon path.

“We see the big emitters, but we’ve got an even stronger instrument at our disposal – the Constitution. South Africa, keeping in mind that we are a developing nation, must find the spirit to do this. I have children. I can’t leave a world for them where they are destined to suffer.”

He said if South Africa received the necessary assistance, he could see a future where coal would disappear off the map.

Greenpeace head Kumi Naidoo, a South African, praised South Africa’s efforts at the talks to keep developing countries together as a strong negotiating bloc. But he said there was a big disconnect in the role that South Africa played on the world stage and its domestic energy policy.

“We can’t say to the world that climate change is a problem, but back home we are building coal power stations and opening more coal mines,” he said.

“The successful countries of the future are getting ahead in the green race.”

But Naidoo said “as a result of what we have secured here in Paris, we will win”.

[Source:  http://city-press.news24.com/News/sa-will-have-to-start-ridding-itself-of-its-coal-addiction-20151213]

Turning South Africa’s Waste into Energy

South Africans throw away over 566 million tonnes of rubbish each year according to the Drankenstein municipality. Much of our garbage ends up buried in massive landfills, causing untold damage to the environment. Add the waste that comes from farming, and you have a ticking environmental time bomb.
Livestock production is one of the most destructive farming practices there is. Times reports that some 40% of the earth’s surface is used for the purposes of keeping all seven billion of us fed, while the production of red meat requires 28 times more land than pork or chicken farming, 11 times more water and results in five times more climate-warming emissions.
Livestock manure is responsible for 18% of the greenhouse gases that cause global warming, more than cars, planes and all other forms of transport put together, according to the Independent.
Bio2watt is a private, forward-thinking energy generator that has partnered with car manufacturer BMW to use waste to produce power. The company is producing electricity for the car manufacturer to use as a supplement to their power needs in manufacturing. Using offal from abattoirs, manure from livestock farmers in the area and organic waste from juice makers, the company is able to produce two mega watts of power.
South Africa has been battling energy shortages since 2008. Alternative power generation is one of the ways government is looking to supplement the country’s energy supply, and biogas is one way to do it.
Sean Thomas, founder of Bio2watt, says companies can work together to reduce the environmental damage.
“We had to convince some of the players that instead of sending your waste matter to [a] landfill, we can process it in the plant. It creates jobs, it’s about sustainability and you’re meeting some of your sustainability indexes,” he says
Bacteria break down waste and methane is produced. The methane is then used to power generators that produce energy.

Source: [http://www.saaea.org/news/category/biomass]

Bladeless Wind Turbines!

What do you get if you take the blades off a wind turbine? A better wind turbine.

That sounds like a joke, but that’s actually more or less the model of a new wind turbine prototype. Instead of blades that turn in the breeze, the turbine is just a hollow straw that sticks up 40 feet from the ground and vibrates like a guitar string when the wind thrums by.

The Spanish engineers who founded Vortex Bladeless in 2010 said they were inspired by the Tacoma Narrows Bridge disaster (maybe not the best pitch for clean energy to a disaster-wary public, but I’ll leave that to their marketing department). Here’s how it actually works, from Wired:

[Read full article here…….http://bit.ly/1RFKVyF]