A sustainable energy future includes coal – it’s time to make peace with that

Adani Australia

Creating sustainable energy solutions that will cut our global emissions while enabling growth in developing nations is an issue that requires every country in the world to play their part.

This can happen. Our global leaders have the capacity to react effectively to a global crisis – this was demonstrated during the COVID-19 pandemic. Now, reducing emissions to mitigate climate change requires a similar response to the pandemic. The solutions will be technology-driven, supported by policies and infrastructure to accelerate their adoption.

And while many companies are talking about their future green credentials, at the Adani Group, we are walking the talk as we prepare to invest more than US$20 billion over the next decade in renewable energy generation, manufacturing and distribution. We are already the world’s largest solar company and we’re on track to be the world’s largest renewable power generating company by 2030.

Hydrogen technologies have the potential to be the ultimate source of green energy. But while we invest to make them affordable and practical in order to lift people from poverty in fast-growing nations such as India, the current reality is we need coal to create affordable, reliable baseload power. Yet this remains something that many people simply cannot come to grips with.

What is it about this scene that is so hard to come to understand? The reality is that coal, gas and renewables are needed to provide a sustainable energy mix.

When Asia experienced a cold winter and economies rebounded in December 2020, thermal coal was in demand to meet the energy gap, according to the International Energy Agency. Likewise, a dry period that reduced the capacity of hydropower and wind in early 2021 increased demand for coal-fired generation across Asia.

Global coal-fired energy generation increased about 15% in early 2021 from its COVID-19 decline, according to the International Energy Agency. This demand propelled the Newcastle thermal coal price to an all-time high in October 2021. Coal-fired power is currently a reliable, accessible and affordable energy source for the developing world.

More than a quarter of a billion people in India rely on coal-fired energy, as well as many more millions across the world. They deserve to be able to access power for safety, for their education, to be able to make meals for their family and for their work – just as citizens of the developed world have done.

The lives and livelihoods of people in the developing world should not be sacrificed to manage the global problem of climate change. It is only fair and equitable that they be given the same opportunities to advance themselves as recent generations of people in developing nations have had.

Despite many loud voices proclaiming its demise, high-quality thermal coal (such as coal from Central Queensland) has a role to play in supporting a sustainable global energy mix. Its high-energy content and low ash percentage relative to some other international coal types makes it a more efficient and lower emission energy source to power electricity generation.

After years of support from the central Queensland community, Bravus Mining & Resources began producing coal in 2021.

The Project provided more than 2,600 direct jobs during construction and we’re now recruiting for operational positions, as is our Bowen Rail Company.

This was more than the 1,000 direct jobs that we promised when we announced we would self-fund and forge ahead with the Carmichael Project in 2018. Throughout construction, we directly paid more than AUD $1 billion to contractors and businesses in regional Queensland. This does not include the significant investments from our contractors and subcontractors that have also flowed to local central Queensland companies and communities.

Most of this work occurred as Australia grappled with the COVID-19 pandemic that crippled many industries and added $331 billion in costs to the Budget in 2020-2021.

Australia’s economic lifeblood – our mining and resources industry - generated $271 billion in exports in 2020. This was $3 from every $5 raised and more than 10% of the economy, according to a Minerals Council of Australia analysis of ABS data. Where there is ongoing global demand for thermal coal, Australia is extremely well placed to meet that demand.

Local communities depend on the jobs and opportunities of the central Queensland mining industry, as does the nation. We work to international standards for sustainability and rehabilitation. The nation’s strong sustainability, safety and environmental frameworks ensure we are among the best coal suppliers in the world.

Climate change is a challenge and an opportunity to develop new technologies that will transform the way we source and deliver energy to all people around the world. Together, our mining and energy companies are contributing to global sustainability and a fair global energy mix that will enable all nations to thrive now and into the future. 