Coal news and updates

Coal-fired power plants and coal mines are going down across the U.S., according to SNL Financial analyses.

 

Facing tougher federal health-based standards for mercury emissions in 2015, utility companies have been steadily shuttering coal-fired units, with 8,800 megawatts permanently closed in 2012 and another 5,781 megawatts projected to be closed this year.

The SNL list of planned coal unit retirements between 2013 and 2018 includes six units totaling 776 megawatts in Colorado. The age of the plants range from 45 to 65 years-old. The plants are being closed by Xcel Energy and Black Hills Energy. 

 

The Xcel plant closures are part of the Clean Air-Clean Jobs Act, which gave the utility accelerated cost recovery for closing the plants as part of a plan to improve Front Range air quality.

 

Meanwhile, SNL reports that more than 150 coal mines were idle in 2013 as the markets — both domestic and export — weakened.

 

Production data from the U.S. Mine Safety and Health Administration shows that mines idled in the first half of 2013 produced a combined 11.4 million tons of coal in 2012.

 

Six of the 10 largest mines idled during the first half of the year were in Central Appalachia. If you look at the power plant closure map and the mine closure map you’ll see a tight fit. Though the truth is that Appalachia coal was already being displaced by Wyoming Powder River Basin coal — which is now more than 40 percent of eastern supplies.

 

Appalachian coal is just too expensive. But even out West coal production is dispressed. In Colorado 2012 output was down about 20 percent and at the last federal lease sale for Powder River coal there was no bidder. Cloud Peak Energy, the largest Wyoming miner, balked at an offer.

 

“We carefully evaluated the estimated economics of this LBA in light of current market conditions and the uncertainty caused by the current political and regulatory environment towards coal and coal-powered generation and ultimately decided it was prudent not to bid at this time,” Colin Marshall, Cloud Peak’s chief executive officer, said in a statement.

 

 

Source: The Denver Post