German coal imports decline

(Posted on 21/01/20)

According to preliminary calculations by the German Coal Importers Association (Verein der Kohlenimporteure e. V.), which represents the interests of the imported hard coal market in Germany., world trade in hard coal increased by 0.7 % to 1,218 million tonnes in 2019, and global hard coal production increased by 2.0 % to 7.2 billion tonnes. China's production alone rose by 171 million tonnes or 5 % to 3.7 billion tonnes, while Indonesia, a major supplier to China, increased its production by 52 million tonnes or 11 %. The seaborne exports of Indonesia, Australia, Russia and Canada increased, while those of the USA significantly declined.

In 2019, German hard coal imports dropped substantially by around 15% or 7 million tonnes. Imports of coking coal receded by 7 % and imports of steam coal by 17 %. Electricity generation from hard coal even decreased by 31 %. Within only 3 years it has roughly halved to about 57 terawatt hours (TWh). The reasons for this are the growth of power generation from renewables, the intensified competition with currently cost-effective natural gas, and the distinctly risen CO2 price in the European emissions certificate trade.

Hard coal-fired power plants can stabilize the electricity grid. This was illustrated by the Deloitte study "Assessing the Flexibility of Hard Coal-fired Power Plants for the Integration of Renewable Energy in Germany" (Deloitte Finance, November 2019), commissioned by the VDKi. From a purely technical perspective, the existing coal-fired power plant park in Germany (2018) could absorb a growing share of fluctuating renewable energies of 50%, 60% or 70%, and integrate them safely into the system. The study shows in particular:

- During a "cold dark doldrum episode", coal-fired power plants generate twice as much electricity as on an average day when the share of renewables is 50%, and three and a half times more electricity when the share of renewables is 70%.

- Germany becomes a net importer during a "cold dark doldrum episode."

Regarding the imminent adoption of the Coal Exit Act, it becomes increasingly evident that decommissioning tenders would lead to an unacceptable unequal treatment of hard coal-fired power plants between themselves. This unequal treatment would foreseeably lead to lengthy legal disputes and would therefore be neither legally secure nor sustainable. For this reason, a consensual solution between all power plant operators should instead also be sought in the hard coal sector. The flexibility of hard coal-fired power plants must be considered in the legislation. As a result, new and lower-emission plants must not be discriminated against any more than hard coal-fired power plants in the South, which will not be permitted in tenders at the beginning, according to the latest draft legislation. Moreover, equal treatment should be provided for safety readiness, as well as fair access for hard coal-fired power plants to safety readiness previously reserved for lignite-fired power plants.

VDKi German and European members come from the fields of power industry, industry, trade and logistics. The association currently has 59 members, whose plants consume about 80 % of the German hard coal requirement of around 47 million tonnes. Imported coal covers 100 % of Germany's coal requirements. The VDKi thus represents the majority of the hard coal market in Germany with a financial volume in the billions. The VDKi regularly examines the significance of the global hard coal markets for the European and German import hard coal markets, points out prospects for the further development of imports and regularly publishes statistics on German hard coal imports and prices.

Latest News

SSAB delivers decarbonised steel to Vattenfall’s solar park project in Germany

SSAB is supplying decarbonised steel to Vattenfall for the construction of the ground-mounted solar... Read more

NGFA statement on STB’s decision to conditionally accept rail merger application

In accordance with the Surface Transportation Board’s merger rules, the Board has conditionally... Read more

EU feed production market forecast highlights continued stability

FEFAC market experts are forecasting continued stability in the EU compound feed production market for... Read more

Fertilizer Action Plan: recognition must now translate into delivery

Fertilizers Europe has acknowledged the European Commission’s Fertilizer Action Plan, which recognises... Read more

Tripartite MOU to establish direct U.S.–DRC cobalt supply chain

Entreprise Générale du Cobalt, EVelution Energy LLC and Trafigura Pte Ltd. has announced... Read more

Commissioning of Oxelösund electric arc furnace delayed due to permitting

SSAB’s conversion of the mill in Oxelösund to fossil-free production is being delayed due... Read more

YEC agreement supports decarbonisation of Rio Tinto’s Pilbara iron ore operations

Yindjibarndi Energy Corporation (YEC), one of Australia’s largest Indigenous-led renewable energy... Read more

ASA Vice President urges caution in USTR Section 301 investigation

Soybean farmers are already facing significant economic headwinds and new trade actions could add further... Read more

ADM investment to upgrade Clinton, Iowa, corn processing facility

ADM, a global leader in innovative solutions from nature, has announced a multimillion-dollar investment... Read more

JV in Bayuquan, China to strengthen global raw material supply chains

CREMER ERZKONTOR GmbH has announced the official opening of its joint venture, CREMER (Yingkou) Supply... Read more