NTPC Group looks to top 50 GW installed capacity by March
State-owned NTPC Group is gearing up to cross the milestone of over 50,000 MW installed power generation capacity by March-end 2017 with expected addition of over 4,630 MW.
"The NTPC Group, including its joint ventures and other subsidiaries, will have over 50,000 MW of installed power generation capacity by the end of this fiscal," a senior power ministry official told PTI.
The NTPC Group has an installed power generation capacity of 47,228 MW, which includes 800 MW of hydro and 360 MW of solar energy.
The official said, "Even if there is some slippage in capacity addition, the NTPC Group as a whole will cross the milestone of 50,000 MW by March-end 2017."
The company is expected to commission 550 MW of solar power project at Mandsaur, Ananthapuram and Badhla.
Besides, thermal power generation capacities at Kudgi (1600 MW), Bogaigaon (250 MW), Mauda (660 MW), Solapur (660 MW), Nabinagar (250 MW JV) and Meja (660 MW JV) are in line for commissioning by March-end next year.
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http://economictimes.indiatimes.com/articleshow/55008761.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
State government uses e-auction to grant mining leases
For the first time, Chhattisgarh government has successfully conducted an e-auction for granting mininglease of 14 minor minerals as a part of the efforts to bring greater transparency in allocation of non-coal mines in the state.
Official sources said minor minerals mining areas of Raipur, Bilaspur, and Rajnandgaon and Balodabazar districts were e-auctioned to ensure that the process of granting mineral concessions for minor minerals is fair, transparent and non-discriminatory.
With more than 50 bidders participated in the e-auction, the process was completed within a short span of one month which earlier used to take more than a year
Aiming to stop illegal mining, centre had earlier directed the states to ensure fair and transparent auction of mines including minor minerals like quartzite, gypsum, mica, quartz and sand. Centre had also asked the states to review the mechanism of granting mining leases for minor minerals and take steps to ensure compliance of the guidelines laid down by the Supreme Court.
http://timesofindia.indiatimes.com/city/raipur/State-government-uses-e-auction-to-grant-mining-leases/articleshow/54951431.cms
Steel companies to feel the heat from surge in coking coal price
Good times for the steel industry, led by the imposition of the minimum import price, anti-dumping and safeguard duties, might be getting over soon, as 40 million tonnes (mt) of steel production will be impacted by the coking coal price surge in the third and fourth quarters.
Since July, coking coal spot prices have increased from $90 a tonne to $245 a tonne and 40 per cent of India’s current steel production of 90 mt that uses the blast furnace technology, will be affected. That includes all major players, Tata Steel, SAIL, JSW Steel, Bhushan Steel and Essar Steel, to an extent.
Indian Steel Association Secretary General Sanak Mishra pointed out around 60-70 per cent of the industry's coking coal requirements were imported.
In the next two to three months, this increase will reflect in steel prices. “This is a serious concern for the industry. Coking coal prices have been moving up since July. Over the next two-three months, this increase will have to be passed on and it will have to be significant each month,” JSW SteelDirector for Commercial & Marketing, Jayant Acharya, said.
But, prices internationally, too, will have to move up. So far, there has been an increase of $15-20 a tonne.
India’s installed capacity is 116 million but the production during last year was 90 mt. The installed capacity has grown about 19 per cent from 97 mt in FY12 and almost the entire expansion has happened through the blast furnace route. Coking coal accounts for 35-50 per cent of the cost of producing steel with this method.
“The cost of steel production for domestic players would increase by around Rs 6,000 per tonne, actual hit would depend on contract vs spot purchase mix,” Jayanta Roy, senior vice-president, ICRA, said.
Steel prices, since the imposition of minimum import price, has increased by Rs 6,000, led largely by a recovery in international prices, but the sharp increase in coking prices is now threatening to wipe out the gains.
The reason for the price surge is that China, which relies mainly on domestic supply, has started importing coking coal to curb pollution levels, curtailing its own production. Also, there is supply disruption in Australia.
The price surge has led debt-stressed companies like Bhushan Steel to contemplate restarting its direct reduced iron (DRI)-based plant that doesn't use coking coal.
Typically, the cost of production in a DRI-based plant is higher by Rs 4,000 a tonne vis-a-vis the blast furnace technology because it is a power-intensive technology. But if the additional cost on account of coking coal is Rs 6,000 a tonne, it might make sense if the surge is going to continue.
Demand is another factor that may come in the way of increasing prices significantly.
“We will have to see how coking coal prices will impact prices of per tonne of steel. If the steelmakers are unable to absorb the cost, they will have to pass it on to the buyers. So, even after the increase in input cost, if the prices go up, and steelmakers are able to sell at below the anti-dumping duty, they can pass on the increase to customers. The biggest issue is that steelconsumption in the country is very low. The demand has to pick up. This will happen once infrastructure spending starts,” Sunil Srivastava, deputy managing director, State Bank of India, said.
But till the companies are able to pass on the price to consumers, margins will be under pressure. The increase in earnings before interest, taxes, depreciation, and amortisation levels after the imposition of MIP-led lenders to appropriate 5-15 per cent from each sale proceeds for at least part-interest realisation.
IMG on mines auction to take stock of clearances this week
An inter-ministerial group (IMG) set up to fast-track mining leases will this week review the status of 16 successfully auctioned blocks that will fetch states revenues of more than Rs 59,500 crore over 50 years.
Post-Auction Mining Clearances and Approvals Facilitator (PAMCAF), chaired by the Mines Secretary, will meet on October 28 to review status of the 16 mines successfully auctioned so far, a senior official said.
"It will review the status of clearances of mine leases won through auctions, the status of Mine Development and Production Agreement (MDPA) as well as that of the issuance of letter of intents (LoIs)," the official added.
The IMG will also explore ways to enhance facilitation for the states concerned to expedite the clearances for early start of operations.
The auction, which kicked off on a lacklustre note earlier this year, is seeing some interest from investors as 10 firms snapped up 16 mines.
The first successful bidding was in February 2016, with two small limestone blocks in Chhattisgarh going under the hammer.
Since then, 14 mines containing iron ore, limestone, gold and diamond have been auctioned out of the total 76 reserved for the sale -- 47 in the first phase and 29 in the ongoing second stage.
So far, a total of 16 mines have been auctioned and revenues that will accrue to states will be over Rs 59,500 crore.
The lease to mine minerals from these blocks is for 50 years and the total earnings include royalty and contributions for the District Mineral Foundation and the National Mineral Exploration Trust.
Of the 16 mines, Karnataka has auctioned 7 followed by Chhattisgarh (3), Jharkhand (2) and Andhra Pradesh, Odisha, Rajasthan and Madhya Pradesh 1 each.
In mineral terms, iron ore leads the tally with eight mines, followed by limestone (6) and 1 each of gold and diamond.
Sajjan Jindal-led JSW is the preferred bidder for highest 5 mines (all iron ore) in the ongoing auction followed by Baldota Group firm MSPL bagging 2 (iron ore). Burnpur Cement has emerged as the preferred bidder for 2 small limestone mines.
Cement companies Penna Cements, Century Cements, Shree Cements and Emami Cement bagged a block each of limestone.
Billionaire Anil Agarwal-led Vedanta won the country's first auctioned gold mine in Chhattisgarh while Bansal Construction Company secured the mining lease for the first auctioned diamond block (Madhya Pradesh) in India.
Other than officials from the mines ministry, PAMCAF has representation from the ministries of environment and forests, Railways, petroleum and the Department of Industrial Policy and Promotion.
The group includes senior officials of the departments concerned from states as well.
‘World Bank must aid countries to manage shift away from coal’
The World Bank and other global development lenders like the Asian Development Bank must help countries such as India to finance the shift of their coal production to more efficient technologies so they can meet their COP21 commitments, World Coal Association Chief Executive Benjamin Sporton said.
By not financing coal projects, the World Bank is actually pushing countries to use inefficient technologies leading to higher emissions, Mr. Sporton told The Hindu.
“The World Bank has taken a policy view that they don’t want to finance coal,” Mr. Sporton said in an interview. “But we have seen evidence from some countries where, because the World Bank does not invest in coal and so does not invest in super critical and ultra super critical plants, these countries invested in sub-critical plants, which have much higher CO2 and particulate matter emissions.”
Super critical and ultra super critical (USC) plants (USC) substantially reduce carbon dioxide emissions and virtually eliminate particulate matter emissions, Mr. Sporton added, saying that India must invest in them despite their higher upfront cost.
“As we make new coal projects in India, we should ensure that the default technology should be super critical or USC,” he said. “The existing sub-critical projects need to be seen on a case-by-case basis on whether they should be upgraded or shut down and replaced.”
“But what needs to be made clear is that countries like India have committed to a path that includes coal, so international development banks must enable these countries to meet their targets,” Mr. Sporton said. “India’s Paris commitment includes building more super critical and USC plants and the international banks must help them do that.”
The Intended Nationally Determined Contributions submitted by 19 countries — India included — said they were going to use coal, Mr. Sporton said. “India basically said in its INDC that coal would be the backbone of its energy mix for decades to come.”
“Even if you look at the U.S., their Clean Power Plan says that coal would be about a quarter of their energy mix by 2030,” he said. “So, even developed nations need coal. In my mind, the Paris agreement is about reducing the emissions from coal, rather than reducing coal itself. The problem is carbon dioxide, not coal.”
India’s push towards renewable energy, while lowering the share of coal in the overall energy mix, does not mean that coal is going to be done away with, Mr Sporton said. “Between now and 2040, electricity supply will triple, coal will almost double and non-hyrdo renewables will see a 10-times increase.”
Solar up, coal down: U.S. shakes up energy supply
Solar power capacity in the U.S. will have nearly tripled in size in less than three years by 2017, amid an energy shakeup that has seen natural gas solidify its position as the country’s chief source of electricity and coal power continue to fade, according to monthly data published by the U.S. Department of Energy.
Cutting carbon dioxide emissions from electric power plants is a major part of the U.S. strategy for tackling climate change as the country seeks to meet its obligations under the Paris climate agreement and keep global warming from exceeding more than 2 degrees C (3.6 degrees F).
Reducing those emissions requires changing the fuels used to produce electricity, including using more natural gas and renewables than coal, historically the country’s largest single source of greenhouse gas emissions driving climate change.
Renewables still make up only a fraction of the U.S. power supply — 8 percent this year. That’s expected to grow to 9 percent next year, and the biggest driver of that growth is solar.
Solar power has been on a tear in recent years partly because of cheaper solar panels and a federal tax credit for solar installations. Congress extended the solar tax credit early this year, helping to fuel a 39 percent annual growth rate for solar power-producing capacity, to 27 gigawatts by next year from about 10 gigawatts in 2014, or enough to power about 3.5 million homes, the data show.
“Because of pent-up demand due to uncertainty over the federal tax credit, solar had a record year in 2016,” said Doug Vine, senior energy fellow at the Center for Climate and Energy Solutions. “Solar capacity buildout is expected to be similar next year.”
By contrast, wind power generating capacity is expected to grow by about 8 percent next year after growing nearly 15.5 percent in 2016.
For most of the past century, coal has been king in the electric power industry. But it has begun to falter as a major energy source in the U.S. because falling natural gas prices have encouraged electric power companies to build more gas-fired power plants.
At the same time, new mercury pollution regulations for coal-fired power plants have taken effect, renewable energy has become cheaper to produce, and electric power companies have begun to gear up for the Clean Power Plan — the Obama administration’s climate policy aiming to slash carbon emissions from coal-fired power plants.
For the first time in history, more electricity is produced using natural gas than with coal. That has helped to reduce greenhouse gas emissions because natural gas releases roughly half the carbon dioxide as coal.
This year, 35 percent of U.S. electricity is expected to be produced using natural gas, and 30 percent will be produced using coal, according to the data. Last year, each produced about 33 percent of U.S. electricity.
With natural gas prices rising, the share of U.S. electricity produced with coal is expected to rise slightly to 31 percent in 2017. But with natural gas expected to generate 34 percent of America’s electricity next year, it is expected to remain the biggest player for the second year.
“Coal is now in many markets the marginal player,” said Daniel Cohan, professor of environmental engineering at Rice University. “There’s definitely been switching from coal to gas, and many analysts think that the majority of coal power plants are losing money.”
As more and more companies are required to install expensive scrubbers on their coal-fired power plants to reduce mercury and other air pollution, the future of coal plants in many areas is likely grim, he said.
“If they’re losing money or breaking even, it’s not going to make sense for them to put in scrubbers,” Cohan said. “It’s likely to tip a growing number of coal plants to shut down.”
http://grist.org/climate-energy/solar-up-coal-down-u-s-shakes-up-energy-supply/
$21.7 billion coal mine project in Australia is targeted by a "foreign funded” groups
According to news agency, in a series of emails, it has been disclosed that the US-based Sandler Foundation funded Australia-based environmentalist group, the Sunrise Project, which offered "Wangan and Jagalingou people" financial support and scholarships if they opposed Adani's mine project and also boasted of its attempts to hide its funding sources from Australian parliament, according to 'The Australian' newspaper today.
According to report, the previously secret briefings as part of Hillary Clinton's campaign chairman John Podesta's emails, said Sunrise tailored its advice to indigenous communities in northern Queensland, and that the "whole Galilee Basin fossil fuel industrial complex is in its death throes".
It was also disclosed that an associated group, Human Rights Watch, offered to help Sunrise Project by keep its tax-exempt charity status because "the mining companies seem to own the Liberals (in Australia) and they play very dirty".
Human Rights Watch chief executive Ken Roth further disclosed that his group received "charitable status by special parliamentary bill" in the "waning days of the Labor government".
In an email to Sandler Foundation last August after a decision against the Adani mine, Sunrise Project director John Hepburn, who is said to be the author of the strategy to block the mine, thanked the Foundation for its support and wrote 'without your support none of this would have happened".
He wrote that he was going to buy a "few bottles of bubbly" for a celebration with "our colleagues at GetUp!!!!, Greenpeace, 350.org, Australian Youth Climate Coalition, Mackay Conservation Group, Market Forces and the brilliant and tireless Sunrise team".
Hepburn's email to the Foundation also mocked the coal industry for the claim "there is some kind of foreign-funded and tightly orchestrated conspiracy to systemically destroy the Australian coal industry".
Reacting to the latest disclosure, Adani Australia chief executive Jeyakumar Janakaraj said the leaked emails were "evidence that these are broader well-funded activist campaigns as part of a wider anti-coal campaign that is being financially backed and influenced a long way from workers in Australia and those suffering energy poverty in India".
"The leaks show, however, that the anti-coal campaign is not about the merits of the approval process at all; it's about activists motivated to stop jobs and investment,"he said.
The latest disclosure came days after the Queensland development minister Anthony Lynham announced that the state government had invoked special powers to ensure the controversial Carmichael coal and rail project starts next year.
The project is now in its seventh year of the environmental approval process.
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