Category Archives for Marketplace Information
Information on the coal market place.
Here is another article that looks at the true costs of generating electricity from wind. As I have noted in many previous Coalblog posts, we consistently hear how wind generation has achieved “cost parity” with fossil fuels. However, a closer look at the actual costs involved reveal a much different story, with wind power coming in at an estimated $149 / MWh.
Over the past 35 years, wind energy – which supplied just 4.4% of US electricity in 2014 – has received US$30 billion in federal subsidies and grants. These subsidies shield people from the uncomfortable truth of just how much wind power actually costs and transfer money from average taxpayers to wealthy wind farm owners, many of which are units of foreign companies. …
Interesting discussion on FOX Business channel. Tom Borelli and John Pippy, CEO of the Pennsylvania Coal Alliance discuss the “fundamental transformation” of American energy production.
Editor’s note: This guest editorial, prepared by Dennis Drebsky with Nixon Peabody, LLP, takes a decidedly different look at coal use forecasts. While many energy experts are predicting declines in coal use, Drebsky argues that the sheer size of the Chinese energy market, along with the affordability and reliability of coal, and the Chinese focus on economic development entails a long-term Chinese reliance on coal-based energy.
China is the world’s largest producer and consumer of coal. However, there have been repeated predictions that China’s use of coal will substantially decline during the next decade due to environmental concerns. That China should be a prime target of these concerns should be no surprise since China produces and consumes almost as much coal as the rest of the world combined. A recent survey found that China accounts for 46 percent of the world’s coal production and 49 percent of consumption. To put this in context, China produces nearly four times as much coal as the second largest producer, the United States. Coal accounts for approximately 70 percent of Chinese energy consumption and this use has held steady, if not increased, during the last 30 years.
Reading EENews.net’s January 26, 2015 interview with the CEO of the American Wind Energy Association is an eye-opener.
Despite repeated assurances that the U.S. wind industry is “vibrant” and competitive, Tom Kiernan flatly admits that without further extensions of decades worth of government subsidies, the wind industry still could not compete. In fact the industry would (in his words) “fall off a cliff” if the PTC were discontinued.
We have all heard the quotes and predictions before, as elected officials plainly stated that under their plans to restrict carbon-based forms of energy, electricity prices would “necessarily skyrocket.”
As this mid-December NY Times article clearly shows, New Englanders are now dealing with the results of those misguided, anti-energy policies, with some residents of the area seeing their monthly energy bills exploding by 110%. The article also relayed warnings from the New England ISO stating that “pipeline constraints (are) severe and … the reliability of the system would ‘continue to be threatened’ ” through the winter.
On December 28th, Bechtel began loading LNG sourced from coal seams at their Queensland Curtis LNG facility.
The QCLNG project connects more than 2,000 onshore wells, which flow into a 335 mile pipeline that moves the gas to the liquefaction facility on Curtis Island. The gas is then chilled to -259.6 degrees Fahrenheit to become a liquid, which makes it 600 times smaller enabling it to be stored and transported in LNG vessels to markets around the world.
Click here to read the full Pennenergy.com article on this development.
Some good news for Alpha’s West Virginia mines.
Alpha Natural Resources, Inc. (NYSE: ANR) operating affiliates announce that the WARN notices for eight coal mines in West Virginia have expired and the mines and their approximately 750 workers will continue to operate. The longer-term plans for these mines will continue to depend upon market prices and demand.
As the EPA’s anti-coal regulations get nearer to implementation, states that rely on coal for electricity and jobs are bracing for the massive economic and social impacts.
Arch Coal’s December 1st news release is a poignant reminder about the potential for economic, social, and environmental damage locked into the EPA’s so-called Clean Power Plan. It is well worth it to reprint the majority of this news release here on the Coalblog.
“Already promulgated regulations are expected to drive the shut-down of as much as 20 percent of America’s coal-based fleet, which is the primary source of base-load power generation in the United States,” said Deck S. Slone, Arch’s senior vice president of strategy and public policy. “That’s an unprecedented change to America’s power system in what constitutes the blink of an eye in energy markets – creating enormous potential for market disruptions, supply shortages and rate spikes.”