CCAI Newsletter May-23

JINDAL STEEL & POWER LIMITED

PARALLEL FLANGE BEAMS & COLUMNS | PLATES | RAILS ANGLES | CHANNELS | COILS | TMT REBARS

CUT & BEND BARS | WELDED WIRE MESH | WIRE RODS

CRANE RAILS | FABRICATED STRUCTURAL STEEL

Our wide range of products demonstrates our capability to consistently add value in line with evolving customer aspirations, and be a part of the nation’s socio-economic development. Our products are a result of pioneering initiatives that have been made possible by deploying futuristic technologies blended with a culture of consistent innovation.

RAIL TRACKS

FABRICATED SECTIONS TMT REBARS

CUT & BEND HOT ROLLED COILS

PARALLEL FLANGE BEAMS & COLUMNS ANGLES PLATES

JSPL DEVELOPS HEAVY CRANE RAILS OF UPTO 150 KG PER METER

From the Editor’s Desk

India has been one of the global advocates for adopting renewable energy as part of its energy transition goals. It has been a pivotal year for renewable energy (RE) generation in India, with other energy sources to meet the surging power demand of the country. The country’s efforts towards expanding its renewable energy capacity have given promising results. India stands 4th in Renewable Energy installed capacity globally and renewable energy significantly contributed to India's power generation mix.

With the country’s energy consumption increasing at an unprecedented rate, it is vital to leverage both conventional and renewable energy sources to meet demands sustainably. The energy sector players will be heavily reliant on optimizing traditional sources of energy like coal for years to come, however, a renewed focus on enhancing the production of renewable energy has come into play. It has been realized across the board that energy sources like solar, wind, hydro, and biomass can offer clean, affordable, and reliable electricity for the growing population and economy of the nation.

The country is committed to escalating the use of clean energy sources and is promoting several large-scale sustainable power and green energy projects. Among the key projects the government has undertaken, green hydrogen projects will be crucial in providing a carbon-free alternative to fossil fuels. By electrolyzing water through solar or wind power, it is possible to harness renewable resources. Hydrogen fuel cells will likely power sectors, including transportation, industry, and residential electricity generation.

Embarking on a journey towards a sustainable future and ensuring seamless integration of renewable energy in the country’s power matrix, a few challenges need to be overcome. The primary challenge is competing with thermal power in the country, with coal ruling the energy mix. It is, however, needless to say, that the government is taking an array of steps to promote renewable energy and constantly spread awareness about the effects of Co2 emissions from thermal power

hindering the growth of the solar power sector is the imposition of safeguard duty on solar cells/modules. This has led to increased project costs for many manufacturers in the solar sector. Meanwhile, the power grid infrastructure in India needs an immediate revamp. It presently offers poor power quality, and discourages the integration of distributed energy sources. The government's focus is to strengthen the grid infrastructure by introducing innovative technologies, and replacing traditional meters with smart meters. India aims to replace 30GW of thermal power generation capacity with renewable energy by 2026, a move to reduce emissions from coal-fired power plants. The government is making remarkable efforts leaving no stone unturned to meet the target. From permitting (FDI) up to 100% under the automatic route to waiving of Inter-State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects, the initiatives are continuous. Adding another feather to their cap, the Ministry of Power and the Ministry of New and Renewable Energy recently launched a joint national mission to quickly identify emerging technologies in the power sector and develop them indigenously. Renewable energy will certainly be an intrinsic part of the long-term trajectory of the power ecosystem. Hence fresh capacity addition from thermal generation is unlikely to be planned by the Centre We believe that India is ahead in the race to attain its energy transition target and is all geared up to achieve its net zero pledge way before its set deadline.

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06 Consumers' Page

10 Power

18 Domestic

24 Global

31 Monthly Summary of Imported Coal & Petcoke

34 Overall Domestic Coal Scenario

CONSUMERS’ PAGE

1. Submission by Power Sector for grade determination of unsampled coal quantity as per FSA and process coal value reconciliation:

According to the terms of the tripartite agreement, third-party sampling needs to be done for any quantity of coal supplied to the Power Sector. However, a significant amount of coal supplied from SECL to the Power Sector has been delivered without conducting third-party sampling during FY 2022-23. Even joint sampling was not conducted for the delivered quantity in case the third-party sampling is not done as per the FSA provision.

As a result, many Utilities received a considerable amount of unsampled coal for which reconciliation against grade slippage could not be done. As per the FSA, if coal samples are not collected from a source/despatch point the weighted average of the most recent results available in any preceding month against respective source and coal grade shall be adopted for such dispatches.

Request has been made to SECL and CIL so that grade determination of the unsampled quantity supplied by SECL may be finalised as per FSA provision, based on which Coal valuereconciliation may be carried out for the delivered quanti-

ty and credit/debit notes may be issuedaccordingly.

2. Request for the extention of time between uploading of offers for CPP Sub-sector and the commencement date of the auction:

As per the notification for Tranche-VI NRS Linkage Auction for the CPP Sub-sector, the consumers had only one week between the uploading of the offer document and the commencement of the auction which was not sufficient as the decision regarding participating and booking coal in the auctions involves many levels of strategy, review, and approvals that also entail documentation formalitieswhich require considerable time.

Request has been made to CIL to provide at least 3-4 weeks between uploading the offer document and the commencement of the auction so that all the requisite formalities may be completed in due course

3. Submission regarding increase in prices of different grades of ROM coal from SCCL in 2023:

The basic prices of different grades of Run-of Mine coal (G1-G17) supplied to both Power and Non-power Sector from SCCL have been hiked three times between 08.02.2023 to 01.05.2023. Also, the prices of washery grade coal (WG 6-WG 13) supplied to both Power and NRS consumers have also been hiked by Rs. 100/tonne during that period. Meanwhile, the price of lower grade coal has been hiked Rs. 300/tonnew.e.f 01.05.2023.

The price hike this year has been on top of the hiked price of SCCL coal where ROM coal prices were hiked seven times for the Power Sector and Six times for the NRS between August’21 to June ’22 period. Such frequent and steep hike in

coal prices is putting a huge financial burden on the consumers of SCCL.

Request has been made to SCCL not to hike coal prices repeatedly within a short period. It is also requested to consider rolling back the hiked price of coal as notified on 01.05.2023.

4. Submission by Captive Power Plants to increase offered quantity from MCL in Tranche-VI NRS Linkage Auction for CPP Sub-sector:

Total quantity of coal offered from different collieries of MCL is 4 million tonnes. However, consumers from the CPP sub-sector have requested to increase the offered quantity from the said subsidiary to 6-7 million tonnes as coal produced in MCL is especially suitable for usage in the power plants.

Request has been made to CIL to increase the offered quantity of coal from MCL under the Tranche-VI NRS Linkage Auction for CPP Subsector to the extent possible.

5. Submission by NRS consumers for early release of long-pending rakes and increase in daily rake supply from WCL, SECL & CCL:

Despite accelerated demand of coal among the Industries, supply of allotted rakes from a number of CIL subsidiaries have been pending for a long period. For instance, several rakes allotted to Non-regulated Sector from WCL, CCL and SECL have been pending since long.As per estimation, nearly 500 rakes have been pending from WCL, more than 450 rakes have been pending from CCL and more than 1900 rakes have been pending from SECL for despatch to various NRS Sub-sectors.

Such a significant pendency in rake supply to the NRS consumers has led to a coal crunch for the Industries procuring from these subsidiaries

amid increasing demand while meagre supply of daily allotted rakes to the NRS have further compounded the crisis. Also the coal value submitted by the affected consumers against the pending rakes are stuck for a prolonged period.

Request has been made to CIL and the respective subsidiaries to immediately release the long-pending rakes allotted to the Non-power Sector from the above-mentioned CIL subsidiaries. It is also requested that daily rake supply to the NRS consumers from these subsidiaries may kindly be increased in order to ease out the crisis.

6. Request by NRS consumers for supply of coal via rail mode through rakes procured under GPWIS:

It has been pointed out by certain consumers from the Non-regulated Sector that despite fulfilling all the criteria and making huge investment for procurement of General Purpose Wagons under the GPWIS Scheme introduced in 2018, they are not able to transport coal via rail mode in spite of having the privately owned wagons as majority of the rakes are being despatched to Power Sector.

It is known that supply of rakes to the Industries from different CIL subsidiaries have been extremely meagre since the last year. Though the supply situation to the NRS had shown signs of improvement during winter, movement of rakes to the industries have again shrunk since the last few months. On top of that, non- supply of coal even through the privately owned wagons have further aggravated coal crunch for the Industries.

Request has been made to Railway Board release the rakes owned by the NRS consumers under the GPWIS Scheme at the earliest possible.

7. Submission to expedite NRS Linkage Auction under Tranche – VI for Captive Power Plants (CPPs) by Coal

India Ltd:

Demand of coal in the Industries including their CPP units has also accelerated in recent months. Though supply to the NRS has increased in the past few months, coal despatch is still insufficient compared to their requirement. This has led them to purchase coal from the open market by paying a hefty premium and import coal from different sources, putting huge financial burden especially on the Captive Power Plants.

Request has been made to MoC and CIL to conduct the Tranche- VI NRS Linkage Auction for CPP Sub-sector at the earliest possible.

POWER THERMAL

India's power demand soars to record high, exceeding previous peaks

India is likely to have reached another record high power demand on May 23, as preliminary reports indicate a peak of 221.2 gigawatts (GW). On May 22, the demand that was met amounted to 220.9 GW. The peak demand deficit, which refers to the shortfall in meeting the demand, stood at 766 megawatts (MW) during these days.

Due to the heatwave conditions experienced in several parts of the country, it is anticipated that the peak power demand met this week may surpass the previous high. On May 17, India reached its highest-ever peak power demand at 221 GW, with a deficit of 1,777 MW.

Lower-than-expected temperatures in early summer and preparedness for projected peak demand of around 231 GW helped in maintaining sufficient capacities for any increase in power demand. .

India's electricity supply improves in cooler pre-monsoon: Kemp

India's electricity transmission network supplied a near-record amount of power in April but the system was much more stable than the year before thanks to lower temperatures and the return of some gas-fired generation.

Total electricity supplied was almost 131 billion kilowatt-hours (kWh), the fourth-highest monthly amount on record. But the total was down by more than 2.3 billion kWh (-1.8%) compared with the same month a year earlier when much of the country was sweltering in an early heatwave.

On the densely populated northern plain, temperatures in New Delhi's Palam suburb averaged 28.2 degrees Celsius (82.8 degrees Fahrenheit) compared with 33.0 Celsius in the same month a year ago, cutting peak electrical loads for refrigeration and air-conditioning.

At the same time, extra generation was provided by solar farms (+1.8 billion kWh, or +23%) and coal-fired generators (+0.3 billion kWh, or +0.2%). These increases helped offset some of the reduced output from hydroelectric generators (-3.0 billion kWh, or -25%) and gas-fired units (-0.3 billion kWh, or -10%).

Power prices feel the heat on high demand; plants have enough coal

Electricity prices on the trading exchanges increased over the last week, indicating higher demand as temperatures spiked in most parts of the country. Power plants reported adequate coal stocks. The month started with 2.8 a unit on the IEX in the day-ahead market, increased to 6 on May 12, and then to 6.7 per unit on May 18, as the mercury rose over the period.

The average price in May so far has been 4.7 a unit compared, lower than the 6.4 per unit in the same period last year. This is despite the 'maximum demand met' touching an all-time high of 221 GW on May 17.

Lower-than-expected temperatures in early summer and preparedness for projected peak demand of around 231 GW helped in maintaining sufficient capacities for any increase in power demand.

Long-terms PPAs, 5-min metering-to-settlement: Govt panel outlines plan to lower electricity bills

A power-ministry constituted panel has recommended new suggestions including the implementation of five minutes-based metering, scheduling, dispatch, and settlement, long-term power-purchase agreements (PPAs) of 12-15 years, among others, to facilitate energy transition in India and reduce electricity bills.

The panel has recommended a roadmap outlining the interventions for the near, medium, and long term in the electricity market. The interventions include setting up a mechanism to monitor whether adequacy of supply is being maintained by the state utilities, enhancing the efficacy of the Day-ahead Market, introducing a market-based mechanism for secondary reserves.

The proposed changes include demand response and aggregation, which could reduce reserve requirements and eventually lower electricity costs. The panel suggests strengthening of market monitoring and surveillance activities to keep track of participation and prevent price volatility.

Government crackdown soon on developers of delayed power projects: R K Singh

Power and New & Renewable Energy Minister

R K Singh has said the government will crackdown on developers of power projects, who miss the scheduled commercial date of opera-

tion or deadline to complete the project.

Singh said that all these projects (power projects) are won under the bidding process and if they miss the SCOD (scheduled commercial date of operation or deadline to complete the project), then the developer will be banned from participating in project bidding for one year.

On the second such incident, the developer will be banned for five years, Singh said, adding that he is going to put this (rule) in (policy). Power project developers are waiting for demand to grow but this will not happen, he said..

Discoms' dues down by a third to 93,000 cr in less than a year of enforcing Late Payment Surcharge Rule

The total outstanding dues of electricity distribution utilities (discoms) has reduced by a third to around 93,000 crore in May, in less than year of implementing the Late Payment Surcharge (LPS) Rules in June 2022.

According to industry data, in June last year, discoms' dues were at 1.39 lakh crore at the time of the launch of the Late Payment Surcharge (LPS) scheme. The total outstanding dues now stand at around 93,000 crore as per the portal PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators).

The PRAAPTI portal was launched in May 2018, to bring transparency in power purchase transactions between generators and discoms. Experts believe the strict implementation of the Late Payment Surcharge (LPS) Rules can make the power sector more viable.

India makes strides in improving power data transparency in Asia: Report

With India making strides in improving data transparency, scoring higher than higher-income countries like China and Japan, more than half of 39 economies in Asia have "poor" or "insufficient" power data, which are home to 684 million people.

While India, New Zealand and Australia scored the highest, many countries with high electricity demand needed improvements. China, despite being the largest electricity consumer in Asia and globally, only scored an "acceptable" rating due to lack of detailed data and inconsistent reporting. ASEAN countries generally scored "insufficient" or "poor" for data transparency, while Thailand and the Philippines performed relatively better.

Notably, three low-middle income countries (India, Bangladesh and Sri Lanka) are making strides in improving data transparency, scoring higher than higher-income countries like China and Japan.

India amends power policy draft to halt new coal-fired capacity

India plans to stop building new coal-fired power plants, apart from those already in the pipeline, by removing a key clause from the final draft of its National Electricity Policy (NEP), in a major boost to fight climate change, sources said.

The new policy, if approved, would not impact the 28.2 GW of coal-based power in various stages of construction, the sources said. The draft, India's first attempt at revising its electricity policy enacted in 2005, also proposes delaying the retirement of old coal-fired plants until energy storage for renewable power becomes financially viable.

In the first draft of the NEP in 2021, India had said it may add new coal-fired capacity, though it proposed tighter technology standards to reduce pollution. The Central Electricity Authority, had said last year India might have to add as

much as 28 GW of new coal-fired power in addition to the plants under construction to address surging power demand. However, the final draft, which will guide India's policymaking on energy over the next decade, features no references to new coal-fired power, the sources said.

RENEWABLES

Timely commissioning of renewable projects key for India to achieve NDC targets: Govt

Delay in the commissioning of non-fossil fuelbased power generation capacities is going to be one of the biggest challenges before India in achieving its Nationally Determined Contribution (NDC) targets. As per the latest NDC targets, India has committed to reducing the emission intensity of its GDP by 45 percent by 2030, from the 2005 level and achieving about 50 percent cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.

As on March 2023, the installed capacity of the country was 415.4 gigawatts (GW), which comprises 236.68 GW from thermal (211.8 GW coal and lignite and 24.8 GW gas), 6.78 GW from nuclear, 171.8 GW from renewable energy sources (42.1 GW large hydro, 66.8 GW solar, 42.6 GW wind, 4.7 GW small hydro, 4.8 GW pumped storage projects, 10.8 GW bio-power).

But with the onset of the Covid‐19 pandemic, the pace of energy development in the country has taken a hit. While solar projects were worst affected due to this with at least 25 GW of projects still stuck, the story is no different for hydropower projects, which not only face geological issues but also resentment from the locals leading to years of delay. The commissioning deadlines of at least seven hydropower projects

have been pushed by a year or more.

National Renewable Purchase Obligation on the cards

The Ministry of New and Renewable Energy is working towards bringing in a National Renewable Purchase Obligation (RPO) to replace the current state-wise RPOs, which have not been effective.

This has become necessary in the context of the plan to auction 50 GW of wind, solar and hybrid capacities annually, and a change in the method of auction from ‘reverse bidding’ to ‘closed bidding’. The change means that the bidders won’t have to start out-bidding each other after their initial bids are opened, which effectively means that the tariffs at which they sell their power would rise.

It is broadly expected that wind and solar tariffs would rise from the current levels of around Rs 2.90 a kWhr, to around Rs 3.30. The fear is that the electricity distribution companies (discoms), which have become used to buying power at low tariffs, would resist the rise.

Power Minister meets EU delegation, talks held on cooperation in advancing Clean Energy

Union Minister for Power and Renewable Energy R. K. Singh met FransTimmermans, Executive Vice President, European Green Deal, European Union in New Delhi on 26th May 2023 to discuss cooperation under the EU – India

Clean Energy and Climate Partnership. The discussion swirled around subjects like energy efficiency, renewable energy, including solar and offshore wind, green hydrogen, energy storage, diversification of global supply chain for energy sector, the International Solar Alliance, India’s G20 Presidency and how India and EU can collaborate on clean energy transition.

The Power Minister informed the EU delegation that with India growing at a rapid rate, the power demand is accelerating. While the established capacity in India stands at 416 GW, it is going to get doubled by the year 2030. Accordingly, India is adding to its power generation capacity. The minister also highlighted that despite India’s per capita and cumulative emissions being one of the lowest globally, the country has emerged as a leader in Energy Transition and Climate Action.

The Minister said that manufacturing capacity for the most advanced solar cells and panels is coming up. By 2030, India seeks to take total manufacturing capacity to 80 GW.

Power Finance Corp to boost loans to renewable projects

Power Finance Corp plans to increase its loan book exposure to renewable energy projects, including funding new areas such as green hydrogen and ammonia, to 27% (with large hydro) by FY30 from the current 10%, chairman Ravinder Singh Dhillon said.

To achieve the target, the company's disbursements towards renewable energy projects could go up to Rs 3 lakh crore in the next seven years. The state-owned company expects to play a significant role in funding green projects in the future and position itself as the focal agency for energy transition. The company has the advantage of providing funds for longer tenure and at competitive rates and taking larger exposures.

"As for non-performing assets (NPA), it is at the lowest level ever in the last six years for the company. We have the largest lending portfolio in the renewable energy space with a renewable book of Rs 48,200 crore," he said.

India considers cutting solar panel import tax to make up domestic shortfall

India is considering cutting its import tax on solar panels by half and is seeking a rollback

in goods and services taxes on the devices to make up a shortfall in local output amid rising demand for renewable energy, three government sources said. India's renewable energy ministry has held talks with the finance ministry to approve its request to cut the import tax on solar panels from 40% to 20%.

The change will come as a boost for Indian solar power giants such as Tata Power, Adani Green and Vikram Solar which won solar power supply contracts by quoting aggressive tariffs but face shortage of local equipment to complete the contracts. India imposed the 40% solar panel import tax in April 2022 and a 25% tax on solar cells to discourage Chinese imports.

Though solar currently makes up over half of India's renewable energy capacity, domestic component supplies have been slow to pick up, and the industry was also spooked by higher import taxes. One of the government officials said India's reliance on solar panel imports in the next two years was "expected to be heavy at nearly 8-10 gigawatts per annum.

Module import curbs to hit solar projects, says industry body

While India aims to install a renewable energy (RE) capacity of 500 GW by 2030, a section of solar developers are worried over the Approved List of Models and Manufacturers (ALMM), which they think have increased prices and reduced the supply of solar cells and modules. Only Indian companies have been listed under ALMM, making it impossible to import cheaper modules.

India‘s RE plan for 2030 includes solar energy of 280GW, and 40 GW of this will come from Grid Connected Solar Rooftop Programme and 30.8 GW under Pradhan MantriKisanUrjaSurakshaevamUtthanMahabhiyan by 2026. The steep levy of duties has impacted plans of commissioning solar plants because of which many plants became unviable.

“Even the Rooftop scheme and KisanUrja schemes are performing badly across the states because the government has not taken into consideration the demands of all stakeholders,” Sunil Bansal, President of Rajasthan Solar Association (RSA) said. As of March 31, 2023, total solar installation capacity in the country is 66.78 GW. Rajasthan, Gujarat and Karnataka are the top performing states with an installation capacity of 17.05 GW, 9.25 GW and 8.24 GW respectively.

Hydropower mega-merger proposal likely next month

State-owned hydropower company NHPC Ltd is likely to submit a proposal next month to merge two other public sector hydro companies, THDC India Ltd and North Eastern Electric Power Corp. Ltd (Neepco) with itself, said Rajeev Kumar Vishnoi, CMD of NHPC.

“The government plans to bring together the diverse and unique expertise of the three hydropower companies to boost the country’s hydropower sector to provide uninterrupted power when solar power is not there. NHPC has the experience of working in remote areas, THDC has the expertise of building large projects and Neepco has the required expertise of working in the northeastern region. The intention is to bring all this experience under one entity," Vishnoi said.

It is anticipated that the combined capacity of the merged entity would be around 20 GW. NHPC’s total installed capacity as of 30 April, according to the company’s website, is 7.097 GW, including hydro, solar power and wind power. NHPC’s share of national hydropower stands at about 14.88% of the country’s total installed hydro capacity of 46.850 GW.

India's SatlujJalVidyut Nigam Limited gets second hydro proj-

ect in Nepal

India's SatlujJalVidyut Nigam Limited has received a permission to develop a second hydropower project in Nepal. Currently, India's stateowned company is developing a 900-mw Arun -III hydroelectric project which is going to complete the construction work by 2024.

Now, the Investment Board Nepal (IBN) has approved the project development agreement (PDA) draft to be signed with India's stateowned SJVN to develop the 669-megawatt (MW) Lower Arun Hydropower project in eastern Nepal which is based on the same river. Prime Minister Pushpa Kamal Dahal, popularly known as Prachanda, chaired the meeting. The draft is due for approval by the Cabinet.

SJVN—Arun-III Power Development Company (SAPDC), a wholly-owned subsidiary of India's SatlujJalVidyut Nigam (SJVN), is developing the project on a build-own-operate-transfer (BOOT) basis. SVJN is a joint-venture between the Government of India and the Government of Himachal Pradesh.

ISTS charges for offshore wind, green hydrogen, ammonia projects waived off for 25 yrs

In a major decision, the government has decided to waive off ISTS charges for offshore wind projects, Green Hydrogen and Green Ammonia projects for a period of 25 years, the Ministry of Power said.

The offshore projects commissioned from January 1, 2033 would be given graded ISTS charges. Offshore wind projects commissioned between January 1, 2033 to December 31, 2033 will pay 25 percent of the applicable ISTS charges, between January 1, 2034 to December 31, 2034 will pay 50 percent of the ISTS charges and between January 1, 2035 to December 31, 2035 will pay 75 percent of the ISTS charges.

Projects commissioned on or after January 1, 2036 will pay 100 percent of the ISTS charges.

The ISTS charges on drawl of energy from energy storage projects, which was earlier granted to the project, will henceforth be available for each individual user of such project. The individual user will get this benefit, if at least 51 percent of the energy utilised by the user for charging the storage system is renewable energy. Earlier the limit of 51 percent was at project level.

Adani Wind Energy Kutchh Five Ltd

will advise the two governments on accelerating manufacture and deployment of clean hydrogen, with a focus on hydrogen electrolysers, fuel cells and creating infrastructure and regulations that support these aims, a press release from Indian Prime MinisterNarendraModi's office said.

commissions

130

MW

wind power plant in Kutchh

Adani Wind Energy Kutchh Five Ltd, a subsidiary of GautamAdani-controlled Adani Green Energy, announced the successful commissioning of a 130 MW Wind Power Plant in Kutchh, Gujarat. The plant, operated under a 25-year power purchase agreement (PPA) with Solar Energy Corp of India (SECI) at a rate of Rs. 2.83/kWh, marks a significant step for AGEL in expanding its renewable energy portfolio.

The newly commissioned plant will be managed by the Adani Group’s intelligent ‘Energy Network Operation Centre’ (ENOC) platform, which has continuously demonstrated and aided AGEL in achieving superior operational performance of its entire renewable portfolio spread across diverse locations in India.

Australia, India to set up green hydrogen task force

India and Australia today agreed to set up an Australia-India Green Hydrogen Task Force to jointly develop green hydrogen resources.

The Indian and Australian governments finalised the terms of reference of the task force, which

"The task force will comprise Australian and Indian experts in renewable hydrogen and report to the Australian-Indian Ministerial Energy Dialogue on the opportunities which are there for Australia and India to cooperate in this important area of renewable hydrogen," Australian Prime Minister Anthony Albanese said.

India’s semiconductor market may reach $64 billion by 2026: Report

The country’s semiconductor market is expected to reach $64 billion by 2026, with significant demand from sectors like consumer electronics, telecom and IT hardware, according to a joint report by Counterpoint Research and the India Electronics & Semiconductor Association (IESA).

India’s telecom stack as well as industrial applications are expected to account for two-third of the semiconductor market size, the report said. In 2019, the country’s semiconductor market was valued at $22.7 billion.

In the short-term, components leveraging mature technology chips, which are 28 nanometer and higher, are expected to see significant opportunities as they support India’s growing automotive and industrial sectors, the report said. The government had in December 2021 announced aRs 76,000-crore incentive scheme for the development of semiconductors and display manufacturing ecosystem.

DOMESTIC COAL

India achieves 47% growth in Coal Production in the last Nine Years

India has achieved 47 percent growth in Coal Production in the last Nine Years. The Coal supply has also touched 877.74 Million tonnes, recording 45.37 percent growth in the same period. Overall coal production has gone up to 893.08 Million tonnes in Financial Year 2023, which is the highest in the history of the country.

The Coal Ministry has signed agreements for a total of 23 coal mines having cumulative peak

rated capacity (PRC) of 33.224 MT per annum during the Financial Year 2022-23. The Ministry said, considering the good response received for the 6th round of commercial auctions, it is expected that 25 coal mines will be allocated during Financial Year 2023-24 for commercial mining.

The Ministry said that as per the Action Plan for 2023-24, the coal production target for financial year 2023-24 is one thousand twelve Million tonnes by enhancing overall production, efficiency, sustainability, and adopting new technologies.

Government says Coal Ministry is making continuous efforts todevelop indigenous manufacturing capabilities in coal mining sector

The government has said that Coal Ministry is making continuous efforts to develop indigenous manufacturing capabilities in coal mining sector. It said, this will further reduce India’s reliance on import of high-capacity mining equipment and boost its domestic production. Coal Ministry said, these efforts are in line with the objectives of aatmanirbharbharat promoting Make in India.

Currently, Coal India Limited imports High-Capacity equipment such as Electric Rope Shovel, Hydraulic Shovel, Dumpers, Drill and Motor Graders worth around three thousand 500 crore rupees and pays one thousand crore rupees as custom duty.

Therefore, the Ministry has planned to phase out import over the period of next five to six years by encouraging and developing domestic equipment manufacturers’ capabilities. The Ministry said, some of the high-capacity machines are presently under trial procurement from domestic manufacturers.

Government likely to introduce amendment bill seeking to provide auction of minerals mined offshore

The government is likely to introduce an amendment bill, which seeks to provide an auction of minerals mined offshore, in the next Parliament session, sources said. The objective behind the move is to use the national wealth in the sea for the use of the people of the country.

“The hurdle is that the original Act for offshore mining does not provide for auctions of minerals. The auction is the policy now. So the Act

needs to be amended. The consultations to amend the act are over and a bill is likely to be introduced in the forthcoming Monsoon session of Parliament,” the sources said.

The Offshore Areas Mineral (Development and Regulation) Act was enacted in 2002. However, not even a single rock could be mined out from the sea-bed mainly due to pending litigations. The amendments will help in realizing the natural wealth which lies with the country along its coast.

Coal India readies 52 projects to reach 1 BT target by FY26

State-run Coal India Ltd (CIL) has drawn up 52 coal mining projects, including 13 new coal blocks, to reach the one billion tonne coal production target by financial year 2025-26, a company official said.

“Apart from the expansions and greenfield projects, we are also trying to do more of underground coal mining for better grades of coal that will help reduce India’s coal imports. Of the 52, eight are underground projects,” he said.

Coal India produced 703 million tonne of coal in FY23 and has a target of 780 MT in the current fiscal. It has set a target to produce one billion tonne of coal by FY26, by when coal minister has said India will start exporting coal. These coal projects will contribute a total of 271 MT of coal to CIL’s production in FY26. Their total peak rated capacity, which will happen in different years for different coal mining projects till financial year 2030-31, will be 445 MT.

Coal India raises high grade noncoking coal prices by 8%

India's largest coal supplier Coal India Ltd has raised prices of non-coking coal of grade G2 to G10 by 8% over the existing notified prices with effect from May 31, five years after the last hike. These high grade coals are used mainly by the

cement, fertiliser, and sponge iron sectors and the development will increase their input costs. It is unlikely to affect the thermal power sector that mainly uses coal of G11-13 grade to generate electricity.

The price revision will help Coal India earn incremental revenue of approximately 2,703 crore in FY24. The company has absorbed inflationary costs for over the past five years without any revision in prices. Some of CIL's subsidiaries may not be able to finance their future projects as they feel the pinch in the absence of adequate compensation, a Coal India official said. The current notified price of coal for grades G2G10 for all sectors is in the range of 1,228-3,288 per tonne on 'pithead run-of-mine' basis..

Imports of coking coal from Russia may double

Russia’s supply of coking coal—the prime raw material in steelmaking—may more than double in FY24, led by state-owned Steel Authority of India Ltd and private steelmakers such as JSW Steel Ltd and Jindal Steel and Power Ltd (JSPL). India’s coking coal imports stood at 54 million tonnes (mt) in FY23, and these imports will account for a fifth of it this year. Imports of Russian coking coal in FY23 stood at a mere 4 mt.

About 90% of India’s coking coal requirement of 60 mt is currently imported, of which Australia alone contributes more than 70%. India has been looking to diversify its imports of steelmaking coal and identified a few markets. Russia has now emerged as a preferred source due to its pricing and ability to deliver it quickly, one of the two officials cited above said.

“Diversification of sources of import is always good as it prevents choking of supplies on account of various environmental disturbances and the emergence of sudden geo-political events. However, it is for the companies to decide on new import markets based on their assessment of quality and the price matrix," steel

secretary NagendraNath Sinha said.

Coal Ministry extends last date for bid submission till June 27

The Ministry of Coal has extended the last date for submission of bids till June 27, 2023, for the ongoing 7th round of Commercial Coal Mine auctions.

With a view to creating additional production capacity, Coal Ministry has so far allocated/ auctioned 133 mines with cumulative Peak Rated Capacity (PRC) of 540 million tonnes per annum (MTPA), out of which 48 coal mines came into production having cumulative PRC of 195 MTPA. The production from captive/commercial mines has reached 16.25 MT in the ongoing financial year till 22nd May 2023 achieving significant growth of 10.2% compared to 14.75 MT produced during the same time period last year.

In order to facilitate the private players for the early development of coal mines, the Ministry is providing necessary support in terms of land availability, environment/forest clearances, assistance from financial institutions, and interagencies coordination. Ministry of Coal has targeted 162 MT production from captive/commercial mines during this financial year.

India to close around 30 coal mines in next few years to pave way for forests, water bodies

India will have around 30 coal mines closing over the next three to four years to pave way for forests or water bodies besides substantial reduction in the quantum of imported coal even as the demand of coal for the thermal power generation in the country will continue to grow till 2040, AmritLalMeena, union secretary for coal, said.

Meena said de-coaling or coal-mine-closure will definitely have a good impact on the environment but will have an adverse impact on soci-

ety and the community at large as livelihood of 50 lakh people who are directly or indirectly engaged in the business will get impacted.

“The de-coaled lands are being put to environment friendly usage by filling them up with flyash, creating forest cover, agriculture lands, solar plants and water bodies. Of the expected more than 2 lakh hectare of de-coaled lands, around 20000 hectare has been identified and 500 hectares per year of it will be made available for various environmental usages over the next few years." he said. Coal mines last for average 25 to 30 years.

Harnessing 10% of coal bed methane reserves can cut India's energy import bill by $2 billion: Experts

India can cut its energy imports bill by USD 2 billion if the nation harnesses 10 per cent of the coal bed methane reserves of 2,600 billion cubic meters, said experts. This assumes significance in view India's coal production clocking record high during the last fiscal year and plans afoot to increase it further. India has an estimated Coal Bed Methane Reserve of 2600 billion cubic metres.

Sharma said the savings would be more if we are able to tap more CBM reserves. Through ICSSA we have been making attempts in creating awareness about the potential of Methane and have conducted workshops for Oil & Gas, Agriculture & Livestock sectors. Going forward the plan is to connect companies related to Coal, Transport and Waste management in order to share knowhow on Methane capture, he added.

The prognosticated CBM resources in the country are about 2600 billion cubic meters (BCM) in 12 states of India. To capitalise on the country's CBM potential, the government enacted a CBM policy in 1997, which mandates the exploration and utilisation of CBM (natural gas). Utilisation of coal mine methane has the potential to benefit India by reducing emissions and increasing domestic energy security.

Steel industry plans robust capex as leverage remains stable: Crisil

The top five steel manufacturers in India are planning major capital expenditure over the next few fiscal years, projected to amount to 55,00060,000 crore per year, nearly double the average annual spending over the previous five fiscal years, credit rating firm Crisil in a report.

Despite this planned surge in capex, the credit rating agency anticipates the key players’ leverage, in terms of net debt to Ebitda (earnings before interest, tax, depreciation, and amortization) ratio, will stay below 2.0 times this fiscal year. This forecast comes despite a slight uptick from the 1.6-1.7 times leverage seen in fiscal year 2023. Crisil attributes this to robust balance sheets, significant cash flows, and low project risks related to new capacity additions.

The Crisil study highlighted the five top steel producers, who account for roughly 60% of domestic output, indicating their capacity expansion is driven by robust demand growth and high operating rates. After experiencing growth rates of approximately 11.5% and 13.3% in fiscal years 2022 and 2023 respectively, domestic steel demand is expected to grow steadily at 7-9% this fiscal year. This is largely due to government initiatives to stimulate the infrastructure and construction sectors, which constitute about 70% of steel consumption.

Local steel prices may fall further on China exports

Steel prices in the domestic market, which have been under pressure since late March, may fall further after a sharp surge of exports from China at lower prices that is seen undercutting exports from India amid weakening global demand.

At around Rs 57,000 per tonne, prices of hotrolled coils in May are down by nearly 3-4% from April, and over 17% lower year on year. Steel mills are likely to reduce prices or offer discounts of Rs 1,500-2,000 per tonne in June as they look to push volumes, industry watchers said.

China, which accounts for 57% of the global production of steel, exported 7.3 million tonnes of steel in April, not only 82% higher than a year earlier but also higher than those in the month of April during 2017-2020, and only marginally lower than 7.97 mt exports in April 2021. This despite production in China falling 1.5% year on year to 92.6 million tonnes last month, Nomura Financial Advisory and Securities (India) said in a recent report.

Around 40 MT new steel capacity to be commissioned in India by FY26: Assocham

Around 40 million tonne (MT) of new steel-making capacity will be commissioned by 2025-26, an industry executive said. VinodNowal -- the Chairman of Assocham's National Council on Iron and Steel -- made the remarks at India Steel Summit in the national capital. Domestic steel production capacity is expected to touch 300 MT and crude steel production is likely to reach 255 MT by FY31, he said.

Nowal, who is also the chairman of JSW Bhushan Power and Steel Ltd, said, "Fresh steel capacities of accumulating to 35-40 MT per annum are lined up for commissioning by FY26".

As per the industry body Indian Steel Association (ISA), India's total installed steel-making capacity was 154 MT as of March 2023. Another 40 MT capacity addition by FY26 will scale it up to 194 MT.

Indian cement makers to increase coke use over coal

Indian cement makers are looking to expand petroleum coke use in their kilns through imports in order to benefit from competitive prices compared with thermal coal. Cement makers, the key consumers of fuel-grade coke in India, have been actively securing June and July-loading cargoes in recent weeks to benefit from lower prices.

The Indian cement industry raised coke imports by more than 72pc on the year during JanuaryApril to 3.21mn t, according to GAC Shipping data. It imported about 7mn t of fuel-grade coke in the 2022 calendar year, up from below 3mn t in 2021. But imports to India's cement industry appear well placed to cross 7mn t well before the end of 2023, said a market participant. India is becoming an even more crucial destination for US and Saudi coke sellers as demand in other markets remains subdued.

Coke prices have declined sharply this calendar year on improved availability and subdued demand from major consuming markets, including China and Turkey. The cfr India US 6.5pc coke price declined by 28pc since January to a two-year low of $125/t in May, making it the cheapest fuel for the cement industry on a heatadjusted basis.

Star Cement, Assam government inks MoU for investment worth Rs 1,400 crore

A MoU has been signed between Star Cement Limited and the Government of Assam for investment worth Ra 1400 crores within the state of Assam. The MOU is signed for setting up a Cement Grinding unit in Guwahati and another Cement Grinding unit in Cachar and AEC Block and other construction manufacturing units in Guwahati.

The total investment which is in the tune of

1,400 crores was signed between Government of Assam and Star Cement led by the Chief Minister HimantaBiswaSarma and Minister of Industry & Commerce Bimal Bora in the presence of Chairman, Star Cement Limited SajjanBhajanka, Executive Director, TusharBhajanka. Sarma termed it a red letter day as the state witnessed pumping in private investment to the tune of Rs 8201.29 crore.

RAILWAYS & SHIPPING

Gati Shakti: Railway lines & Road projects gather steam

Almost two years after the launch of Gati Shakti National Master Plan (NMP), construction of new rail lines has risen to 12 km per day in 2023 from 4 km per day before 2022. The railways has planned a record 13,264 km of rail infra projects for the year, data analysed by the Department for Promotion of Industry and Internal Trade (DPIIT) shows.

Similar improvement is seen in road projects as well since the rollout of NMP, officials aware of the development said. All logistics and connectivity infrastructure projects in the country entailing investment of over 500 crore are routed through the Network Planning Group constituted under the PM Gati Shakti initiative.

Till now, 79 projects worth 5.19 lakh crore have been evaluated on the NMP, comprising 34 of railway ministry, 25 of the road transport and highways ministry, and four of the petroleum and natural gas ministry. As per the analysis, usage of NMP has increased rail electrification by 40%, automatic signalling by 144%, and sanction of station redevelopment by 49 times.

Dedicated Freight Corridor achieves milestone of running 1 lakh trains

Dedicated Freight Corridor (EDFC) achieved a milestone of running one lakh trains with Member Operations and Business Development at Railway Board, Jaya Varma Sinha, flagging off the 100,000th train running on the Corridor alignment in May. Till now 55,332 trains have been operated on the Eastern Dedicated Freight Corridor (EDFC) while 44,658 trains on the Western Dedicated Freight Corridor (WDFC).

As of today, 2089 Route KM -- 73.5 per cent of the DFC has been commissioned, it said, while adding that DFC alignment except for Jawaharlal Nehru Port Trust (JNPT) connectivity is expected to be commissioned by December 2023.

DFC is a vital initiative under the National Logistics Policy and is aimed at reducing the cost of logistics from 15 per cent (approx.) of the country's GDP to 8 per cent by 2030.

Union Shipping Minister announces five initiatives to make India global leader in maritime sector

Union Minister of Ports, Shipping and Waterways (MoPSW) SarbanandaSonowal announced five major initiatives, focusing on green shipping and digitisation of the ports, by his Ministry to make India a global leader in the maritime sector.

The 'Panch Karma Sankalp' include 30 per cent financial support from the Ministry for promoting green shipping, procuring two tugs each for the Jawaharlal Nehru, VO Chidambaranar, Paradip and Deendayal ports under the green tug transition programme and developing hydrogen hubs at some of these ports, it said.

The other two initiatives are -- setting up a single window portal to facilitate and monitor river and sea cruises and turning Jawaharlal Nehru, VO Chidambaranar and Tuticorin into smart ports by next year, it said.

GLOBAL ASIA

Asia's seaborne thermal coal imports hit record high as prices slip: Russell

Asia's imports of seaborne thermal coal surged to the highest on record in May as cheaper prices tempted buyers in the region's developing economies. A total of 78.38 million tonnes of the fuel used primarily to generate electricity is likely to be offloaded across Asia in May, according to data compiled by commodity analysts Kpler. This is the most in Kpler data going back to January 2017, while Refinitiv data also shows record imports in May in data stretching back to January 2015.

The robust May outcome comes on the back of strength in both March and April, with those two months being the second- and third-strongest months according to Kpler data. Rising thermal coal imports come as seaborne prices for the fuel continue to decline, with two of the more popular grades slipping to 16-month lows in the week to May 26.

Indonesian coal with an energy value of 4,200 kcal/kg IDIDX42GRW1=ARG slipped to $65.28 a tonne, the lowest since January 2022 and just over half of the peak of $120.86 reached in March last year in the wake of Russia's invasion of Ukraine. Both these grades are popular in China and India, the world's two biggest coal importers, as well as in other developing Asian

economies such as Vietnam, Thailand and Malaysia.

Indonesia eyes energy transition plan by August

Indonesia aims to finalize a broad plan to guide its energy transition ambitions by August as the country tries to reduce its carbon footprint. The country's energy ministry (ESDM) said it is working with the ministry of state-owned enterprises (BUMN), the ministry of finance, and state-owned utility PLN to complete the Comprehensive Investment and Policy Plan (CIPP), which will serve as the framework for Indonesia's energy transition through the Just Energy Transition Partnership (JETP).

The CIPP will focus on developing new transmission networks, building base load and peak load renewable energy power plants, new plans for the early retirement of coal-fired power plants, and creating a renewable energy supply chain, the ESDM said. Indonesia plans to reach net zero by 2060. New renewable energy power plants and smaller plants need to be connected to national grids via the new transmission systems to contribute to the country's electricity supply, ESDM added.

Indonesian thermal coal prices show mixed trends in May

Indonesian thermal coal prices showed mixed trends across different grades. High-calorific value (CV) coal (5800 GAR) prices dipped to $114.96/t. On the other hand, low-calorific value (CV) coal (3600 GAR) prices edged up to $53.51/t. High CV prices showed a rise by up to $4.85/t.

PTBA, Indonesia's state-owned coal miner, had announced force majeure after a landslide disrupted its coal hauling operations from railway provider, KeretaApi Indonesia (KPA) on 27 April, 2023. The incident is likely to affect the miner's calendar year 2023 (CY23) target of producing 41 mnt and hauling 32 mnt of coal by rail.

Earlier, in 2022, PTBA produced 37 mnt of coal,

of which 28.8 mnt were hauled by rail. The derailment has impacted transportation of coal from TanjungEnim mine in South Sumatra province, PTBA's largest mine to Tarahan Port. The force majeure led to vessel loading schedules being postponed.

Indonesia to issue draft carbon market regulation

Indonesia's Financial Services Authority (OJK) aims to issue by 12 June an initial draft of technical regulations for setting up the country's carbon exchange. The initial draft will be submitted to various ministries for harmonisation, with the final rules expected to be published in July. The OJK is aiming for formal operations of the carbon exchange market to begin in September this year, with an initial trade volume of 100mn t of carbon dioxide (CO2).

Setting up a national carbon exchange is part of the government's efforts to reduce CO2 emissions in line with its net zero target. Indonesia plans to reach net zero by 2060 and has announced a series of measures aimed at reducing the country's carbon footprint.

The country's energy ministry (ESDM) said it is working with the ministry of state-owned enterprises, the ministry of finance and state-owned utility PLN to complete the Comprehensive Investment and Policy Plan, which will serve as the framework for Indonesia's energy transition through the Just Energy Transition Partnership.

China fuels economic recovery with higher coal imports, not LNG, in Q1

China increasingly turned to coal imports during the first quarter to help power its economic recovery from the COVID-19 lockdowns, while its appetite for costly LNG sourced from the global market declined. Following a number of measures to bolster domestic coal production, global receipts and coal-fired power generation going forward, China’s focus on self-sufficiency has also dampened the anticipation of a resurgence in LNG demand that could have sent

global gas prices rocketing akin to 2022.

China’s coal production rose 5.5% on the year to 1.15 billion mt in the first three months of 2023 while imports jumped 63.1% on the year to 101.8 million mt in the same period, according to official government data.

China has also resumed trading coal with Australia since mid-January, ending an unofficial ban imposed in 2020, while it also signed in March a joint statement to build closer energy cooperation ties with Russia.

Albanese government gives go ahead to new coal mine

The Albanese administration came to power on a platform that positioned it as more climatefriendly than the outgoing Morrison administration, although it did not specifically promise to ban new coal mines.

Environment minister Tanya Plibersek said that there was strong justification for approving the Isaac River mine. “It met the standards under the Environment Protection and Biodiversity Conservation Act as it is at the moment. This is a small project. It’s next to five other coal mines. It’s been a mining area for decades,” she said.

“It’s a project that produces metallurgical coal, which is the coal you need for steel making. There’s no renewable energy future that doesn’t have steel in it.” Comparing it to Adani’s controversial Carmichael coal mine in Queensland, she said: “It’s less than 1% the size of Adani, and it will go for five years versus, something like 60 years for Adani”.

Australia’s exports to China hit record high as relations thaw

Australia’s exports to China hit a record high in March, as Chinese buyers snapped up Australian commodities from coal to iron ore amid a

thaw in bilateral relations. The country’s shipments to China reached 19 billion Australian dollars ($12.8 billion) in March, up 28% from the previous month and 31% from the same period a year ago, according to data released by the Australian Bureau of Statistics.

In particular, thermal coal exports to China surged 122% in March from a year earlier to $238 million. Shipments of iron ore lump and iron ore fines to China also jumped 28% and 22.5%, respectively, to $380 million and $973 million.

The Chinese government said Morrison’s request was “political manipulation,” and since then imposed a series of trade restrictions on Australian products, including barley, lobsters and coal. But the frosty relationship has shown signs of thawing since last year when the Labor party swept to power in Australia.

Australian thermal coal mine aims for Q4 restart on supply deal

Australia Pacific is on track to restart a thermal coal mine in New South Wales State in the fourth quarter after it secured a supply agreement with a global coal buyer, it said . The miner has been restructuring its operations and looking for finance as it prepares to produce 3 million tonnes per year of coal from its mine in the Hunter Valley which has been closed since 2006.

"The Dartbrook Joint Venture is currently finalising funding arrangements to meet future restart capex and working capital needs," Australia Pacific Coal said in a release to the securities exchange.

A significant portion of the project's expected funding will be linked to a new coal marketing and supply agreement, and negotiations with an international third party with extensive global coal marketing experience are in the final documentation stage.

South Africa can keep coal fired plants running longer, climate committee says

South Africa’s top climate policy body suggested the government could delay retiring its ageing coal-fired power plants to address electricity shortages, adding a power crisis had put the country on track to meet its climate goals anyway. South Africa’s governing African National Congress has recommended that state power utility Eskom delay the decommissioning of its ageing coal-fired power stations to help minimise rolling electricity outages.

However, it is also committed to a plan partly funded to the tune of $8.5 billion by the United States, Britain, France, Germany and the European Union to accelerate a shift away from coal and towards solar and wind energy. Cyril Ramaphosa has said that the total cost could prove ten times higher than what Western donors are offering to finance.

South Africa is heavily reliant on coal for electricity. As a result, it coughed out 430 megatonnes of CO2 in 2021, making it the world’s 14th biggest carbon emitter, according to the latest data from Global Carbon Atlas. That put it ahead of Britain, Mexico and Australia, all of which are much bigger economies.

Ramokgopa insists South Africa won’t transition away from coal in darkness

The Minister of Electricity, KgosientshoRamokgopa, has warned that South Africa will not transition away from coal-fired power stations in darkness. He said the lights must be on before South Africa moves away from coal to renewable energy and this position has been explained to the international community that pumped in $8.5 billion for the Just Energy Tran-

sition programme.

Ramokgopa said during a question-and-answer session in the National Council of Provinces on Tuesday that they have had to halt plans to decommission some of the power stations because of the critical need for energy. South Africa was in the midst of power cuts and it could not afford to remove more megawatts from the grid.

He said between 2018 and 2020 more than 2 900MW were removed from the grid as part of transitioning from coal. There were plans to cut another 5 200MW from power stations as part of the just transition programme in the next few years.

UNITED STATES

US, Australia agree on minerals, emissions, energy pact

The US has agreed to work with Australia on greenhouse gas (GHG) emissions reduction, with US president Joe Biden promising to advocate for Australia's inclusion for tax credits under his $369bn Inflation Reduction Act (IRA).

Australian Prime Minister Anthony Albanese announced the bilateral cooperation under a climate, critical minerals and clean energy transformation compact, establishing climate and clean energy as a "central pillar" of the USAustralian alliance.

Albanese welcomed the IRA as the "largest ever action" to tackle climate change, but concern has been building about the effects the tax credit policy will have in drawing renewable energy investment away from key US allies such as Japan, the EU and Australia, while also harming foreign manufacturers.

Albanese said Biden will push the US Congress to treat Australian suppliers and activity as "domestic activity in the United States" for the purpose of the Defense Production Act, given that

the nations work together on nuclear submarines.

Storing hydrogen in coal may help power clean energy economy: Research

Coal may provide a potential new way to store hydrogen gas, much like batteries store energy for future use, addressing a major hurdle in developing a clean energy supply chain, according to a study. Hydrogen is a clean burning fuel and shows promise for use in the most energy intensive sectors of the economy like transportation, electricity generation and manufacturing, the researchers said.

However, much work remains to build a hydrogen infrastructure and make it an affordable and reliable energy source, they said. This includes developing a way to store hydrogen, which is currently expensive and inefficient.

Geologic formations are an intriguing option, the scientists said, because they can store large amounts of hydrogen to meet the peaks and valleys as energy demand changes daily or seasonally. "Coal is well-studied, and we have been commercially producing gas from coal for almost a half century.

U.S. at risk of blackouts this summer

Extreme weather this summer will strain the U.S. power grids, putting two-thirds of North America at risk of electricity shortfalls this summer during periods of peak demand on the hottest days, the North American Electric Reliability Corporation (NERC) said this week in its reliability assessment.

In a normal summer with around-usual temperatures, the grid would cope as resources are adequate to meet demand. However, if temperatures in the summer spike above norms and heat waves sweep through North America, the U.S. West, the Midwest, Texas, Southeast, and New England, plus Ontario in Canada, may face supply shortages, NERC said in its 2023 Sum-

mer Reliability Assessment.

NERC has been warning about the grid’s vulnerability to extreme weather every year in the past few years as retirements of generators of stable dispatchable power have raised the risk of power shortfalls. “Increased, rapid deployment of wind, solar and batteries have made a positive impact,” Mark Olson, NERC’s manager of Reliability Assessments, said.

European thermal coal buyer’s eye reselling in Asia amid sufficient stockpile

With decent thermal coal stockpiles at European ports, along with lower coal demand due to strong natural gas storage levels and renewable energy generation, market participants in Europe are looking to tap the Asian market to resell their products, sources told S&P Global Commodity Insights. The development comes at a time when thermal coal demand in Asia is lackluster due to strong domestic production and lower-than-expected temperatures, even as prices have fallen to levels not seen at least in the last three months.

Market sources in Asia said they have received several offers from European participants, particularly for high calorific value coal, used by the majority of their thermal power plants. “I bought a shipment from Poland recently and have some more offers for coal above 5,500 kcal/kg NAR. Since global prices have fallen considerably, Europeans are ready to sell even at some loss or the product quality will continue declining,” a large India-based buyer and trader said.

China and India, which are the two biggest drivers of the Asian thermal coal market have large-

ly remained on the sidelines putting pressure on Indonesian coal prices, while South African prices have also suffered a setback due to added competition in the global market.

Europe’s unwanted coal heads to China and India as heat builds

Coal cargoes unwanted in Europe are heading to Asia, where utilities are stockpiling the fuel amid sweltering temperatures heading into the summer. Shipments of about 7 million tons of Colombian coal will be exported to Asian countries in the next quarter, according to chief executive officer of Berge Bulk Ltd.

European customers raised their imports of Colombian coal last year by 23 per cent to about 30 million tons, according to data from shipbroker BRS Group, after the continent was plunged into an energy crisis following Russia’s invasion of Ukraine. However, with natural gas prices dropping more than 90 per cent since August, more power plants are switching back to the alternative fuel.

The extra arrivals in China will add to burgeoning inventories at coastal ports. The country has ramped up imports at the same time as expanding domestic production to feed the reopening of its economy. But demand hasn’t kept up as China’s recovery has disappointed.

Moscow discussing with Pyongyang cargo, coal transshipment in Rajin Port – Ambassador

Russia expects transportation of its cargo, including coal, for transshipment in the North Korean port of Rajin to begin soon, Russian Ambassador to Pyongyang Alexander Matsegora said in an interview. "We expect that soon the transportation of Russian cargoes intended for transshipment in the port of Rajin, mainly coal, will begin. This matter is being actively discussed now," Matsegora said.

In November 2022, freight railway traffic between Russia and North Korea resumed in regular mode and the cargo was now transported through the only border railway crossing point, Khasan-Tumangang, the ambassador said. Trade routes between Russia and North Korea were frozen by Pyongyang in early 2020 over concerns about the COVID-19 pandemic.

The Khasan-Rajin project was launched several years ago and was intended to deliver cargo by rail from Russia to the North Korean city of Rason with subsequent shipment by sea to ports in other countries.

Global thermal coal prices settling into $200 per tonne range after volatile 2022

Global thermal coal prices are stabilising this year in a range near $200 a tonne that is less than half of 2022’s record highs, analysts and industry officials say, with rising supplies providing respite to consumers roiled by last year’s volatility. Analysts expect the benchmark Newcastle coal index to average $175-$212 a tonne this year, a steep premium to the $86 average for the ten years preceding Russia’s 2022 invasion of Ukraine, but down more than 50% from September’s highs at $440.

Coal prices in the tighter range expected this year, though, will help utilities and other users better plan fuel purchases, easing pressure on economies battling high inflation. Fuel prices typically account for more than half the total cost of generating electricity.

Argus Consulting expects global coal exports to rise 4.4% this year, with imports set to increase 5%. China is seen ramping up imports by 11%, with Australian exports rising 9.4% after declining for three straight years. July Ndlovu, chairman of the World Coal Association (WCA) and chief executive of South Africa’s Thungela Resources, said Europe’s “disproportionate” role in deciding coal prices was over.

MONTHLY SUMMARY OF IMPORTED COAL & PETCOKE

Indicative Pet Coke Price

Indicative Coking Coal Price

Indonesian Coal News:

Indonesia has set a higher monthly benchmark price for its middle-grade coal for May from a month earlier, but has lowered the prices for high and low-grade coal, the energy minister said in a statement. The Indonesian Energy and Mineral Resources Ministry had set the country's coal reference price (HBA) at 275.64 U.S. dollars per metric ton, last year showing a significant increase of around 200 U.S. dollars from January 2021.Meanwhile, Indonesia's thermal coal exports in April fell by 8% m-o-m compared to March, according to a data from

Statistics Indonesia.

Indonesia is trying to reduce its carbon footprint and in the process aims at finalizing a plan to give direction to its energy transition ambitions by August. The country's energy ministry is collaborating with the Ministry of state-owned enterprises, the Ministry of Finance and stateowned utilities to work on and complete the Comprehensive Investment and Policy Plan (CIPP), which will serve as the framework for Indonesia's energy transition. The CIPP will emphasize developing new transmission networks, building base load, new plans for the

early retirement of coal-fired power plants and creating a smooth renewable energy supply chain, said the ministry.

Australian Coal News:

Australia’s metallurgical coal exports are likely to go up to 172 million mt by FY 2027-28 from 163 million mt in FY 2021-22. Although China has started buying Australian coal again, it is anticipated that most of the volume will go to India. As per the Australian government's latest Resources and Energy Quarterly, Australian producers would prefer a long-term offtake contract with a steelmaker in India over one in China. In the recent past, weather events have disrupted the Australian coking coal supply but now exports are proving to be beneficial due to a robust pipeline of investments.

*In Australia soaring prices of coal last year led to ramping up of a few new coal mines. Australia Pacific Coal, an Australian miner, is preparing to restart a thermal coal mine in New South Wales State in the fourth quarter after securing a supply agreement with a global coal buyer. The miner has been reorganizing its operations and looking for finance as it gears up to produce 3 million tonnes of coal per year from its mine in the Hunter Valley. As per sources, a significant portion of the project's funding will be linked to a new coal marketing and supply agreement, with an international third party with extensive global coal marketing experience.

South African Coal News:

South Africa, the fifth-largest coal exporter, accounting for about 5% of the global volume and the largest African producer and consumer is expected to further increase its coal consumption in coming years, experts say. South Africa's coal consumption is projected

to increase by 5.3% from 2022 to 2025 as the coal power plant fleet's performance increases. In terms of exports, the gap left by Russian coal supplies in Europe has been largely filled by South Africa.

In South Africa, business associations are keen on keeping the coal-fired power plants running, despite government plans to phase out the fuel. Local business associations have prepared proposals that are being supported by local politicians and several state-run power companies operating the coal mines. Local communities have expressed concerns about the economic impact after the closure of coal power plants. The closures are part of South Africa’s Just Energy Transition Partnership (JETP), an effort to reduce the electricity sector’s greenhouse gas emissions.

European Coal News:

In Europe, coal prices dipped below $100 a ton, their lowest since 2021. The decrease was due to a drop in power demand and curbed gas prices. Power plants have been favorable towards gas over coal, with strong imports of liquefied natural gas boosting stockpiles and improving the region’s energy-security outlook. The change is significant compared to last year when Germany burned coal at the fastest pace. On the import side, imports of coal to northwest Europe had remained relatively static at around 5m tonnes/month since the beginning of the year and are likely to remain the same in the coming months.

In Europe, warmer weather and soaring energy prices resulted in a dip in overall demand of coal generation according to a report. Coal generation dipped by almost 11%, compared to the same period 12 months before. The drop was mainly due to emergency EU legislation, which set a voluntary electricity demand reduction target for member states over the

winter to cope with reduced supply. As per analysis, most member states met the 5% energy consumption reduction target set out. As a result, total EU electricity demand fell by an estimated 6% on the five-year average between November 2022 and March this year.

US Coal News:

In the US, Illinois Basin and Appalachia coal sales prices in the US increased by 26.1% and 80%, respectively, from the first quarter of 2022 due to improved price realizations in both domestic and export markets.US-based Alliance Resource Partners shipped more coal to higher-priced export markets in the first quarter of 2023 as domestic utility customers moved their committed tonnage forward amid low natural gas costs as per company sources.

The US is planning to impose new carbon pollution standards upon its coal- and gas-fired power plants. The Environmental Protection Agency (EPA), will state that new and existing power plants will have to meet a range of new standards to cut their emissions of polluting gases. The EPA predicts that the rules will drive the country to switch to cleaner energy, install carbon capture technology or shut down the utilities entirely. EPA forecasts that the standards would prevent the emission of up to 617m tons of carbon dioxide from coal and gas plants over the next two decades, equivalent to the yearly emissions of around half of all the cars in the US.

Pet Coke News:

The price of petcokecalcined grade FOB USGC

dropped by around 1% in the US market, while the price of petcoke fuel grade 4.5% Sulphur FOB USGC declined by approximately 4% due to the decreased price of feedstock crude oil in the US market. The demand for petcoke seemed to be low to moderate as the construction sector was down due to labour shortage. However, the supply of petcoke in the country was driven by the declined prices of feedstock crude oil as cheaper raw materials helped manufacturers to reduce their costs and improve their financial position.

Shipping Update:

The Baltic Exchange’s main sea freight index, fell drastically owing to the pressure by lower rates across all vessel segments. The overall index, for capesize, panamax and supramax shipping vessels, dropped 32 points. The capesize index lost 64 points, or 2.4%, to 2,566. Average daily earnings for capesizes, transporting 150,000-tonne cargoes carrying commodities like coal and iron ore, fell by $538 to $21,276. Recently, Australian coal has been more active but to lift up the rates to the next level, some more Brazilian iron ore would be needed, said a shipbroker. Average daily earnings for panamaxes, carrying coal or grain cargoes declined by $324 to $13,009.

Russia is looking at the transportation of its cargo, including coal, for transshipment in the North Korean port of Rajin to kick start soon. Trade routes between Russia and North Korea were frozen by Pyongyang in early 2020 over concerns about the COVID-19 pandemic. The Khasan-Rajin project was launched some years ago with the motive of delivering cargo by rail from Russia to the North Korean city of Rason with subsequent shipment by sea to ports in other countries. The project was initiated in 2000, and work did not begin until 2008. However, it was suspended in 2016 when South Korea quit over concerns about Pyongyang's nuclear tests.

OVERALL DOMESTIC COAL SCENARIO

COAL DESPATCH

SECTOR-WISE COAL DESPATCH (TILL MAY’23)