Van AalstCleveland Cascades LtdPort of South LouisianaPort of StocktonTelestackCoaltrans Asia 2021
  • Bühler GmbH
  • Telestack
  • TMS Awards 2021
  • The Wolfson Centre for Bulk Solids Handling Technology
  • Coaltrans Asia 2021
  • Port of Stockton

Coal significant in energy transition say German importers

Coal significant in energy transition say German importers

(Posted on 04/08/21)

The VDKi (Verein der Kohlenimporteure), which represents the interests of the imported hard coal market in Germany, has released a statement confirming that the first half of 2021 shows hard coal continuing to make an important and reliable contribution to electricity generation despite the sealed coal phase-out. The volume of electricity generated in hard coal-fired power plants increased by more than a third (35.6%) to almost 25 TWh compared with the same period of the previous year in a period of low temperatures and with significantly less wind power availability. With this increase, hard coal made a significant contribution to security of supply, underlining its important role in safeguarding the energy transition. In our opinion, this will continue to be necessary in the future, especially after the increase in the German government's forecast for electricity consumption in 2030 of between 645 and 665 TWh.

The coal phase-out law was enacted on August 08th, 2020. Over the first three tenders, 25 bids were awarded with a bid quantity of 8,435 MW.  This included some young, modern coal-fired power plants.  In this respect, the mechanism of the law has not resulted in primarily older power plants with higher specific CO2 emissions being taken off the grid. 

Southern German hard-coal-fired power plants are at a massive disadvantage in the auctions for the capacities to be decommissioned. Participation in the first tender was excluded, and in subsequent tenders a grid factor will be taken into account which will with high probability prevent any successful participation in those auctions. As a result, the employees of the hard coal-fired power plants in southern Germany will be at a significant disadvantage in terms of possible socially acceptable staff reductions.

There is also an urgent need for action in the district heating sector. In many German cities, district heating comes from highly efficient cogeneration plants based on hard coal.  VDKI member companies report difficulties with possible conversion of their plants to gas or biomass. There is a lack of funding or simply a lack of efficient gas grid connections.

Following the passing of the Climate Protection Act, the energy industry framework conditions must now be adjusted quickly.

In 2020, world hard coal production decreased by around 220 million mt to 7.06 billion mt due to the pandemic and thereby returned to the level of 2018. Essentially, only the production increases of China (+94 million mt) and India (+7 million mt) ensured that world hard coal production did not decrease even more. Seaborne trade in 2020 decreased by 149 million mt, or 12.1%, to 1,083 million mt. Seaborne coking coal exports decreased by 13.2% to 264 mt and the steam coal market decreased by 11.7% to 819 mt. Hard coal continues to ensure economic growth in Asia and other growth regions, thereby the share of seaborne trade in Asia now amounts to 84%. An increase of world production and world hard coal trade will be a fact during world economy’s recovery post COVID.

On August 31st this year, the VDKi will celebrate its 125th anniversary in the knowledge that its members continue to make an essential and highly reliable contribution to the German economy through their hard coal activities.

Latest News

Rio Tinto expands Pilbara presence with new Karratha Hub

(Posted on 16/10/21)

Rio Tinto Iron Ore Chief Executive, Simon Trott and Rio Tinto Managing Director of Port, Rail and Core... Read more

Collaboration for first carbon neutral copper cathode delivery

(Posted on 13/10/21)

BHP and leading US copper cable and wire manufacturer, Southwire, have completed their first ‘... Read more

Carbon tracking for Trafigura’s nickel and cobalt trading

(Posted on 11/10/21)

Trafigura Pte Ltd, one of the world’s largest physical commodity trading companies, and Circulor... Read more

Rusal and TransContainer develop green logistics

(Posted on 11/10/21)

RUSAL, a leading global aluminium producer and PJSC TransContainer (part of the DELO Group), an intermodal... Read more

Host joins IIMA

(Posted on 04/10/21)

The International Iron Metallica Association has welcomed Host as the latest member to join its community... Read more

First Mill E3 set to revolutionize the milling industry

(Posted on 29/09/21)

Bühler is announcing a transformative moment in the history of flour milling with the opening of... Read more

First Mill E3 set to revolutionize the milling industry

(Posted on 29/09/21)

Bühler is announcing a transformative moment in the history of flour milling with the opening of... Read more

Rio Tinto triples Weipa bauxite mine solar capacity

(Posted on 21/09/21)

Rio Tinto has approved a new solar farm and battery storage at Weipa in Queensland, in a move that will... Read more

Trafigura raises USD400 million US Dollar Bond

(Posted on 21/09/21)

Trafigura Group Pte Ltd, one of the world’s leading independent commodity trading companies, has... Read more

Rio Tinto teams with Caterpillar for zero-emissions autonomous trucks

(Posted on 16/09/21)

Rio Tinto and Caterpillar have signed a Memorandum of Understanding (MoU) for Caterpillar’s development... Read more

TMS Awards 2021TBA GroupViganBühler GmbHTOC EventsThe Wolfson Centre for Bulk Solids Handling Technology
  • Port of South Louisiana
  • TOC Events
  • Sailors Society
  • Cimbria

Subscribe to our newsletter

Keep up to date with the latest global news in bulk cargo handling and shipping