By Tom Valtin
Photo courtesy of Shutterstock
Yesterday, a Bureau of Land Management (BLM) lease sale in Cheyenne, WY, for 149 million tons of publicly-owned coal failed to attract a single bid. It was the first time that a federal coal tract offered for sale in Wyoming failed to attract any bidders—even the company that originally sought to mine the location determined that it couldn't do so profitably.
In June 2013, the Department of Interior's Inspector General released a report identifying numerous flaws in BLM's coal leasing program. Among them, the report confirmed that over the last 20 years 80 percent of Powder River Basin lease sales attracted only one bidder, and none attracted more than two.
Cloud Peak Energy, which applied for the Maysdorf II North Coal Tract lease in 2006 in order to expand its Cordero Rojo mine, said it had evaluated the coal tract in the Powder River Basin and decided not to submit a bid due to "current market conditions and the uncertain political and regulatory environment of coal and coal-fired electricity."
The Powder River Basin, which straddles the Wyoming-Montana border, is the largest coal mining region in the U.S. But with the domestic coal market in steep decline, the economics of extracting its coal are increasingly bleak. Cloud Peak Energy CEO Colin Marshall said that an economic analysis led the company to conclude that "a significant portion" of the coal up for bid was not economically recoverable. "We are unable to construct an economic bid for this tract at this time," he said. "We will continue to evaluate any possible future lease sales by the BLM of these tons in the North tract as market conditions improve."
But the assumption that market conditions for coal will improve is clearly questionable if not downright delusional. The failure of the lease sale to attract any bidders shows that the federal coal lease program is mired in outdated and inaccurate beliefs about coal's market value.
"It comes down to economics, plain and simple," said Aaron Isherwood, a managing attorney with the Sierra Club’s Environmental Law Program. "The market for coal is incredibly soft, so why would the government sell publicly-owned coal at a time when people are paying rock-bottom prices for it? Federally-owned coal is supposed to be sold at fair market value. Would you try to sell your house right after the housing market craters? The public is getting ripped off. The failure of this lease to attract a single bid is clear evidence that the federal coal-leasing system is badly in need of reform."
Nearly 5 billion tons of federal coal is currently being leased or sold in the Powder River Basin, even as the domestic market for the resource is tanking. As confirmed by the Department of Interior report, the way leases are managed by the BLM is short-changing American taxpayers to the tune of millions of dollars with each successive lease.
Coal market experts who spoke in Wyoming and Montana earlier this week called for a moratorium on new federal coal leases until the Department of Interior and BLM “get their act together," asserting that the federal leasing program has shortchanged taxpayers by $30 billion over the past three decades.
"The BLM can't give this stuff away," said Bruce Nilles, senior director of the Sierra Club's Beyond Coal campaign, in reaction to the failure of the Maysdorf II coal tract to attract any bidders. "This is the beginning of the end of coal—it's officially worthless. This is what happens when community after community replaces their aging coal plants with clean energy."
Visit EcoWatch’s COAL page for more related news on this topic.
A "trash tsunami" has washed ashore on the beaches of Honduras, endangering both wildlife and the local economy.
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More long-finned pilot whales were found stranded today on beaches in Tasmania, Australia. About 500 whales have become stranded, including at least 380 that have died, the AP reported. It is the largest mass stranding in Australia's recorded history.
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By Harry Kretchmer
By 2030, almost a third of all the energy consumed in the European Union must come from renewable sources, according to binding targets agreed in 2018. Sweden is helping lead the way.
Sweden is a world leader in renewable energy consumption. Swedish Institute/World Bank
Naturally Warm<p>54% of Sweden's power comes from renewables, and is helped by its geography. With plenty of moving water and 63% forest cover, it's no surprise the <a href="https://sweden.se/nature/energy-use-in-sweden/#" target="_blank">two largest renewable power sources</a> are hydropower and biomass. And that biomass is helping support a local energy boom.</p><p>Heating is a key use of energy in a cold country like Sweden. In recent decades, as fuel oil taxes have increased, the country's power companies have turned to renewables, like biomass, to fuel local 'district heating' plants.</p><p>In Sweden these trace their <a href="https://www.sciencedirect.com/science/article/pii/S0360544217304140#fig3" target="_blank">origins back to 1948</a>, when a power station's excess heat was first used to heat nearby buildings: steam is <a href="https://www.sciencedirect.com/topics/engineering/district-heating-system" target="_blank">forced along a network of pipes</a> to wherever it's needed. Today, there are around 500 district heating systems across the country, from major cities to small villages, providing heat to homes and businesses.</p><p>District heating used to be fueled mainly from the <a href="https://www.sciencedirect.com/science/article/pii/S0360544217304140" target="_blank">by-products of power plants</a>, waste-to-energy plants and industrial processes. These days, however, Sweden is bringing more renewable sources into the mix. And as a result of competition, this localized form of power is now the country's<a href="https://www.sciencedirect.com/science/article/pii/S0360544217304140#fig3" target="_blank" rel="noopener noreferrer"> home-heating market leader.</a></p>
Sweden is using smart grids to turn buildings into energy producers. Huang et al/Elsevier
Energy ‘Prosumers’<p>But Sweden doesn't stop at village-level heating solutions. Its new breed of energy-generation takes hyper-local to the next level.</p><p>One example is in the city of Ludivika where 1970s flats <a href="https://www.buildup.eu/sites/default/files/content/transforming-a-residential-building-cluster-into-electricity-prosumers-in-sweden.pdf" target="_blank">have recently been retrofitted with the latest smart energy technology</a>.</p><p>48 family apartments spread across 3 buildings have been given photovoltaic solar panels, thermal energy storage and heat pump systems. A micro energy grid connects it all, and helps charge electric cars overnight.</p><p>The result is a cluster of 'prosumer' buildings, producing rather than consuming enough power for 77% of residents' needs. With <a href="http://www.diva-portal.org/smash/get/diva2:1232060/FULLTEXT01.pdf" target="_blank" rel="noopener noreferrer">high levels of smart meter usage</a>, it's a model that looks set to spread across Sweden.</p>
<div id="d7bf9" class="rm-shortcode" data-rm-shortcode-id="8757b138d5570bec9d6aad18074a429a"><blockquote class="twitter-tweet twitter-custom-tweet" data-twitter-tweet-id="1273556364263071744" data-partner="rebelmouse"><div style="margin:1em 0">Read more about Western Harbour and book a visit: https://t.co/ujSmVs9rNK 🏡🌳🌊 https://t.co/C5PuPziqIM</div> — Smart City Sweden (@Smart City Sweden)<a href="https://twitter.com/SmartCitySweden/statuses/1273556364263071744">1592474473.0</a></blockquote></div>
Scaling Up<p>A recent development by E.ON in Hyllie, a district on the outskirts of Malmö, southern Sweden, <a href="https://www.eonenergy.com/blog/2019/February/sweden-smart-city" target="_blank">has scaled up the smart grid principle</a>. Energy generation comes from local wind, solar, biomass and waste sources.</p><p>Smart grids then balance the power, react to the weather, deploying extra power when it's colder or putting excess into battery storage when it's warm. The system is not only more efficient, but bills have fallen.</p><p>Smart energy developments like those in Hyllie, Ludivika, and renewable-driven district heating, offer a radical alternative to the centralized energy systems many countries rely on today.</p><p>The EU's leaders have a challenge: how to generate 32% of energy from renewables by 2030. Sweden offers a vision of how technology and local solutions can turn a goal into a reality.</p>
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By Jessica Corbett
In another win for climate campaigners, leaders of 12 major cities around the world — collectively home to about 36 million people — committed Tuesday to divesting from fossil fuel companies and investing in a green, just recovery from the ongoing coronavirus pandemic.
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