West Virginia Governor Vetoes Bill Expanding Renewable Energy to Protect Coal
West Virginia Gov. Jim Justice (R) on Tuesday vetoed a measure that would raise the allowable size for a solar plant operated by state utilities, citing concerns about its effects on the coal industry.
The measure, HB5528, would have expanded the size of solar plants the state’s electric utilities, AEP and Mon Power, could own, doubling it from 50 megawatts (MW) to 100. A total ceiling of 200 MW per utility would remain in place.
Jim Justice
In his veto letter, Justice expressed concerns the bill would lead to higher costs for consumers and said it “can only further endanger our nation’s energy security and put West Virginians at the mercy of the national power grid to ensure we keep the lights on at home.”
“I fear this well-intentioned bill will further encourage these companies to drop coal-generated power and continue to turn toward more expensive options outside of West Virginia,” he wrote.
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Pricing Impacts Uncertain For Thermal Coal, Petcoke After Baltimore Bridge Collapse
Thermal coal and petcoke market participants had mixed views on potential pricing impacts following a major bridge collapse in the US city of Baltimore March 26.
"I don't have a crystal ball for the direction of coal prices," a US-based coal broker said. "I would suspect a temporary uptick in global prices to replace US NAPP coal but with demand lukewarm, prices could remain unchanged. Petcoke prices, probably similar -- no changes. Biggest impact is to cash flow to companies like Consol."
The Frances Scott Key bridge in Baltimore fell into the Patapsco River after a vessel from Singapore struck a supporting pylon early March 26. The vessel remained stuck in the debris, sources said. A mining source based near Baltimore said shipping agents confirmed navigation through Baltimore Harbor is suspended with no timeline for opening.
"The incident will restrict NAPP shipments from Arch Coal and create numerous problems in the supply chain for India," a US-based trader said. "Possible effect on thermal coal to Europe. Bigger impact is India. Watch the petcoke prices jump!"
The port of Baltimore near the bridge is the largest in the US for specialized cargo. Baltimore was the top loading location for US thermal coal exports in 2023, US Census Bureau data showed.
"The authorities will take 6-7 days to assess how much debris is there from the incident and how much draft is available because if the draft is low then it could be a problem," an India-based trader said. "The authorities may take 10-15 days to clear out the debris, so it means no ship movement during this period."
Another coal market participant, a trader based in Singapore, said FOB Baltimore physical thermal coal prices were unlikely to be supported by the US bridge incident.
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Stuck Baltimore Coal May Raise Prices in India, Europe
The blocking of two coal terminals in the key Baltimore US coal export hub this morning following a bridge collapse will mostly hinder North Appalachian coal exports to India for the brick kiln industry.
Most thermal coal exports from Baltimore's two coal terminals, Consol Marine Terminal (CNX) and Curtis Bay Piers, flow to India, with 12.4mn t shipped last year and 6.3mn t in 2022, US customs data show. Baltimore exported just over 900,000t to India in January, up from 364,000t a year earlier.
The port did not provide a timeline as to when the terminals may resume coal exports as of 26 March.
Suspended North Appalachian shipments will probably raise prices in India, as brick kilns enter the peak production season in the summer, an India-based trader said. The brick kiln industry typically consumes very-high calorific value NAR 6,900 kcal/kg North Appalachian coal.
Buyers could look to petroleum coke as a substitute, but the higher sulphur content may not be appealing to some users despite the higher calorific value.
US petroleum coke is currently more competitive than coal for Indian buyers, based on Argus spot price assessments. The price of cfr India 6.5pc sulphur coke averaged $3.74/mn Btu over 4-25 March, compared with $4.16/mn Btu for high-sulphur Illinois basin coal, the next cheapest alternative. North Appalachian coal averaged $4.86/mn Btu over the same period, down from $5.02/mn Btu in January.
Some US coal is sold to India under term contracts on an API 2 index-linked price basis.
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Coal Mining Experts, Company Exhibitors Discuss the Future of the Industry During the 50th Annual West Virginia Mining Symposium
Coal mining officials and product manufacturers say the future of the industry is still looking strong in the Mountain State as new technology and safety innovations, as well as more advanced ways at producing coal are helping to fuel its way forward.
Local, state, and federal mining industry experts came together to network and share ideas Tuesday for the 50th annual West Virginia Mining Symposium.
Hosted by the West Virginia Coal Association, the two-day event– being held Tuesday, March 26 and Wednesday, March 27 at the Charleston Coliseum and Convention Center– brought in a number of featured guest speakers to give remarks on behalf of the mining industry, including Governor Jim Justice, West Virginia Attorney General Patrick Morrisey, WV DEP Secretary Harold Ward, WV Public Energy Authority Director Nick Preservati, among several others.
Event spokesperson and Publisher of North American Mining Magazine, Peter Johnson, told MetroNews that the two-day symposium was all about the ways to keep the state’s leading industry going.
“It’s educational, it’s networking, it’s bringing people together, and it’s very important to keep the coal industry going, because, it’s a fuel that’s not going to go away, there will always be a demand for coal,” Johnson said.
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Missing the Heart of the Story
Over the past few weeks, both The Washington Post and The New York Times have discovered the sudden reemergence of soaring electricity demand and its collision with the nation’s teetering supply of power.
The Post feature, which ran on the front page the morning of the State of the Union, was dramatically titled, “Amid explosive demand, America is running out of power.”
Both articles dug into the outsized role of data centers and AI, alongside electrification and ballooning investment in domestic manufacturing, in driving new demand. And both pieces warned that the nation’s supply of electricity is unlikely to keep pace.
But these features completely missed the heart of the story on why the nation is rapidly approaching an electricity shortfall.
As NMA’s president and CEO Rich Nolan explained in a letter to the editor to The Post, failing to cover the rapid loss of the nation’s coal fleet due to regulatory pressure was a glaring omission.
As he pointed out, The North American Electric Reliability Corp. (NERC), which oversees the reliability of the nation’s grid, warned in December of blackout risks for most of the country over the next decade. The leading cause is the collision of rising demand along with the rapid loss of 83 gigawatts of existing baseload power plants, power plants capable of generating electricity to power 60 million homes.
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