GLOBAL Global coal plant development fell for fourth year running in 2019: research Global coal power plant development declined for the fourth year running in 2019, while a total of 13 gigawatts (GW) of capacity construction has been delayed so far this year due to the coronavirus, research by environmental organizations shows. The annual survey of the global coal plant pipeline by Global Energy Monitor, Greenpeace International, the Sierra Club and the Centre for Research on Energy and Clean Air showed a 16% drop last year in capacity under construction and development. This year, 15 plants with a total capacity of 13 GW have so far been delayed by workforce or supply chain issues related to the coronavirus outbreak. However, China’s approval of permits for coal plants has increased in an effort to stimulate its economy. From March 1 to 18 this year, China approved more coal-fired capacity for construction (6.6 GW) than during all of 2019 (6.3 GW). Even with the overall fall
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in coal plant development in 2019, the world is not on track for the steep reductions in coal power necessary to meet goals to limit global warming, the report said.Scientists have said coal use needs to fall 80% by 2030 to keep global warming below 1.5 degrees Celsius.
Demand destruction to further depress coal prices in March European coal prices will remain at around multi-year lows in March on concerns the deadly coronavirus will further erode global demand and amid still low gas prices and ample supply.The API 2 front-month contract has dropped 4% since the end of January to USD 46.20/t – the lowest on a rolling basis since May 2016 – on Ice Futures. The Cal 21 had fallen 5% to USD 56.75/t, only marginally higher than contract low of USD 56.20/t. “The fundamentals aren’t positive and could get weaker depending on coronavirus impact on demand,” said independent coal analyst Plamen Natzkoff, also pointing to the bearish influence of weak freight rates.
