GLG News by Mr. Thomas Shewski, Owner
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
-
Key Points Contained in Climate and Energy Bill Passed by U.S. House of Representatives
June 29, 2009
House Narrowly OKs Sweeping Climate Change Bill | www.dallasnews.com
The U.S. House of Representatives narrowly passed the American Clean Energy and Security Act of 2009 (“ACES”) on June 26, 2009. The discussion below contains the key points in the Bill now headed to the Senate for debate and action.
-
April 27, 2009
Coal Prices Crumble | www.forbes.com
Both steam and metallurgical coal demand are down. United States steam coal (for electricity generation) is down due to the economic slump affecting industrial demand and switching to cheaper natural gas-fired electricity generation in some areas of the nation. Metallurgical coal demand is down due to the crushing drop in steel production domestically and globally. Although coal demand is down significantly, it does not necessarily allow coal under contract to be excused for purchase.
-
April 27, 2009
Administration Stops Short of Endorsing Climate Bill | www.nytimes.com
House Democrats issued a draft climate bill titled “The American Clean Energy and Security Act of 2009” on March 31, 2009 which proposes to reduce CO2 emissions and require the development of renewable energy on a nationwide scale. The section that follows highlights important provisions contained in this 648 page draft bill.
-
Potential New Emissions Rules: Effect on Electricity Generation
April 27, 2009
Central New York Rep. John McHugh Takes Aim at Acid Rain | www.syracuse.com
Some in Congress are using the debate in Washington, DC on carbon tax to also include additional limits on mercury, nitrous oxide (NOx), and sulfur dioxide emissions (SO2) from coal plants. Many proposals have been floated in Congress (one of which is linked here) to limit these emissions. If any of these proposals were to pass and become law, it will have significant impact on electricity generation.
-
Burn Likely to Continue to Be Down for Several Months
April 27, 2009
Genscape Coal Burn Falls 2 Percent Below Same Week 2008 | uk.reuters.com
Domestic thermal coal demand is likely to continue to be down for several more months, with nothing positive on the immediate-horizon.
-
Key Features of Draft Climate Bill
March 31, 2009
Democrats Unveil Climate Bill | www.nytimes.com
House Democrats issued a draft climate bill titled “The American Clean Energy and Security Act of 2009” on March 31, 2009 which proposes to reduce CO2 emissions and require the development of renewable energy on a nationwide scale. The section that follows highlights important provisions contained in this 648 page draft bill.
-
Potential Setback for Central Appalachia Mine Permits
March 24, 2009
EPA Halts Hundreds of Mountaintop Mining Permits | www.miamiherald.com
EPA sent two letters to the U.S. Army Corps of Engineers expressing serious concerns about the need to reduce the potential harmful impacts on water quality caused by certain types of coal mining practices, such as mountaintop mining. The letters specifically addressed two new surface coal mining operations in West Virginia and Kentucky. EPA also intends to review other requests for mining permits. This EPA action follows shortly after the Court’s favorable ruling on the mining practice in February 2009. This EPA action may negatively affect the producers.
-
March 24, 2009
2009 EPA Allowance Auction Results | www.epa.gov
SO2 allowances are traded daily in the broker and private party markets. The value of these credits are down substantially, affecting both the cost to generate electricity on coal and the realized sales price received by coal suppliers.
-
Potential Consequences of EPA’s Proposal Regarding Global Warming on Infrastructure Projects
March 23, 2009
EPA: Global Warming Endangers Health. Finding Could Have Far-Reaching Implications for Economy and Environment | www.washingtonpost.com
Back in Spring 2007, the U.S. Supreme Court ruled in a 5-4 decision that the Environmental Protection Agency (EPA) may regulate carbon dioxide (CO2) emissions. It appears the EPA in the new Presidential Administration may be moving forward in declaring global warming endangering health, requiring regulation on CO2 emissions. The analysis section below discusses how this could have an effect on infrastructure projects.
-
Carbon Cap and Trade Program – Structure and Cost on Fossil Fuel-Fired Electricity
March 23, 2009
Obama Proposal Angers Coal Industry, Including Southern Indiana’s Duke Energy | www.newsandtribune.com
The proposals by the Administration in Congress for a reduction in carbon dioxide (CO2) emissions include what is called a “Cap and Trade” program. Under a Cap and Trade program, the amount of annual CO2 emissions would be capped and an entity would have to have a CO2 allowance for each ton (or metric ton depending on the final wording of the law) emitted during the year.
-
March 23, 2009
U.S. Power Plants to Burn Less Coal in 2009: EIA | uk.reuters.com
U.S. domestic demand coal demand is down due to lower electricity usage, less industrial demand, fuel switching to natural gas as a result of low natural gas prices and high NOx emissions costs on coal-fired generation, and high inventories at many coal plants. U.S metallurgical coal demand is down due to steel demand being off. Exports of metallurgical and steam coal will also be down from 2008’s robust export volumes.
-
February 9, 2009
Emitting Defeat: EPA to Drop Bush’s Controversial Mercury Emissions Policies and Begin New Rulemaking Process | gristmill.grist.org
The D.C. Circuit Court of Appeals ruled on February 8, 2009 in favor of the plaintiffs that coal plants could not be removed from the list of mercury sources subject to a Maximum Available Control Technology (MACT) standard. The Bush Administration filed an appeal of this. The Obama Administration dropped this appeal. This sets up the potential for Congress/EPA to establish a Maximum Achievable Control Technology (MACT) standard for mercury removal from coal-fired plants.
-
Coal Supply Response to Decreased Demand
February 9, 2009
Steelmakers’ Woes Hit Coal Miner Massey’s Profits | uk.reuters.com
Thermal coal consumption is down as a result of lower electricity usage, less industrial demand, fuel switching to natural gas as a result of low natural gas prices and high emissions costs on coal-fired generation, high inventories at many coal plants, and falling exports. Metallurgical coal demand is down due to steel demand being off.
-
Class I Railroads' Coal Volumes to Be Down in 2009
February 9, 2009
Transportation and Logistics Rates Will Largely Depend on Capacity, Fuel, and the Overall Economy | www.logisticsmgmt.com
Coal demand will be down in 2009 due to the economy, high inventories at coal plants, competitive switching to less expensive natural gas for electricity generation, high emissions prices for coal plants, less met coal needed for steel, and less exports. This will affect the railroads since approximately 70% of the U.S.’s coal moves by rail at some point in the transportation chain.
-
CO2 Emissions Cap and Trade Program’s Mechanics and Cost to Electricity
February 9, 2009
How Carbon Caps Will Affect Utilities Sector | seekingalpha.com
The proposals in Congress and the Obama Administration for a reduction in carbon dioxide (CO2) emissions include what is called a “Cap and Trade” program. Under a Cap and Trade program, the amount of annual CO2 emissions would be capped and an entity would have to have a CO2 allowance for each ton (or metric ton depending on the final wording of the law) emitted during the year
-
Dynegy Ending Joint Venture with LS Power on Coal Plants – MWs and Tons of Coal at Risk
January 15, 2009
Dynegy Ends Coal-Plant Venture with LS Power | www.planetark.org
Dynegy recently announced it was ending its joint venture with LS Power on coal-fired power plants. The commentary below discusses the plants, the MWs, and tons of coal now at risk of not proceeding without Dynegy’s participation.
-
Potential Coal Transportation Tonnage for the DM&E if It Builds into the Powder River Basin
January 15, 2009
Commission Takes Testimony on DM&E Project | www.ktiv.com
The Dakota Minnesota & Eastern (DM&E) Railroad was recently acquired by the Canadian Pacific (CP) Railway. The DM&E has for years been proposing an extension to the Wyoming Powder River Basin (PRB) coal reserves. If the DM&E would commence this project, it would upgrade an existing 600 miles of track and provide for 260 miles of new track expansion into the coal fields of the PRB. When the DM&E was a stand-alone Class II Railroad, it applied to the Federal Railroad Administration for Government-backed loan guarantees for this potential project. The submissions and comments related to this FRA filing portend the potential affects on the DM&E, Union Pacific (UP), and BNSF for coal tonnage from the PRB.
-
White Energy and Upgraded Coal – Items to Consider
January 15, 2009
White Energy to Build Coal Plant in Wyoming | www.forbes.com
White Energy intends to build a processing plant to take raw sub-bituminous coal from the Buckskin Mine in the Wyoming Powder River Basin and improve its heat content (by roughly 35%) and preserve, and possibly improve, its emissions profile. There are a few things to consider on White Energy’s venture.
-
January 14, 2009
In Reversal, Court Allows a Bush Plan on Pollution | www.nytimes.com
CAIR require deeper cuts in NOx emissions starting in 2009 and SO2 emissions starting in 2010 in the Eastern US. This is through a cap and trade program with the usage of limited emissions allowances for both NOx and SO2 emissions. CAIR was originally thrown out by the Courts on July 11, 2008 and reinstated on December 23, 2008. CAIR requires annual NOx allowances starting in 2009 for the affected Eastern states plants. Previously, certain Eastern states only had seasonal NOx allowance requirements. Now most of these Eastern states plants will be required to have annual NOx allowances for 12 months of the year and seasonal NOx allowances for 5 months of the year (May 1 to September 30). CAIR also requires starting in 2010 affected Eastern states plants to surrender 2 SO2 allowances for each ton of SO2 emissions. This surrender rate changes to 2.86 starting in 2015. Pre-2010 banked SO2 allowances retain their surrender rate for 2010 and beyond compliance.
-
New Coal Demand from New Coal Plants Coming Online in 2009
December 8, 2008
Sector Snap: Coal Sector Falls on Weak Demand | money.cnn.com
Despite U.S coal demand forecasted to be down in 2009 for thermal and metallurgical exports, new coal plants coming online will require incremental coal demand.
- Subscribe to Updates
-
Leading institutions connect with Thomas Shewski through GLG
Most Popular Energy & Industrials News
-
Big-Foot YRC Drops the Other Shoe on Shareholders
November 3, 2009
-
Bombardier Barbs Shows CSeries Can't Cut The Mustard
November 2, 2009
-
New 777 Depends On 787 Success
October 13, 2009
-
Airbus Lost $7.5bn+ Trying to Flog the A350XWB
August 28, 2009
-
Airbus A380 Struggling To Cut The Mustard?
August 24, 2009