Weekly SA Coal Report
South Africa has made headlines at COP26 by offering a potential template to other nations for how to speed up coal decommissioning by spending the lovely cash from wealthy nations, earmarked for renewables development.
However, the devil is in the details, notably in the grid and Eskom’s current reliance on an increasingly decrepid coal fleet.
Meanwhile, Russia, China and Australia have effectively snubbed the climate conference, with Australia vowing to continue supporting its coal industry, and China effectively doubling its coal imports during October, from levels seen last year.
This is less though than September, as China’s domestic coal production has gone into overdrive, together with central planners looking to calm domestic prices. Russia has been the largest benefactor of China’s ban on Australian coal, with the two nations seemingly happy to partner together on energy security issues, against increasing political pressure from the West.
One can only imagine how happy China will be to see the USD lose its reserve currency status, and have
energy commodities traded in a local currency. That is probably going to be a big theme in 2022 following the Beijing Winter Olympics.
Both Australia and South Africa are also aggressively chasing the hydrogen economy, with Australia looking to establish a hydrogen hub at the port of Newcastle. The ability of coal (activated carbon) to store hydrogen and easily release it when required is probably also going to be an interesting development during 2022.
Even as coal finance remains elusive, and Transnet seems adamant not to build rail facilities to Botswana, the landlocked nation is going ahead with new coal field developments, notably Maatla Resources.
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