We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Wednesday, 02 September 20
MARKET INSIGHT - INTERMODAL
 The imminent global shift towards eco-friendliness has caused divide among the shipping community because there is no outlined, clear-cut way via which shipowners can start approaching the future IMO targets. In 2018, the Marine Environmental Protection Committee adopted a greenhouse gas (GHG) emissions reduction strategy entailing (among others): reduction of CO2 emissions by at least 40% by 2030 and by at least 50% by 2050, compared to 2008 levels. Earlier this month, the 4th IMO GHG study forecasted that shipping emissions are due to increase by approximately 50% till 2050! This will undoubtedly speed up the need for effective GHG mitigation techniques in the maritime industry. It can be argued that realistic attainment of the IMO 2050 target will likely need to encompass a combination of market-based, technological, logistical and ship finance measures. Propulsion methods such as LNG and ammonia currently offer high yet expensive CO2 mitigation potentials. On the other hand, a bunker levy could offer a directly implementable and R&D cost-free approach towards the IMO targets.
A bunker levy may be implemented by a direct carbon tax or an emission trading scheme (ETS). The latter is less desirable since it can only absorb (40-75)% of emissions captured by a current respective bunker levy. Carbon neutral fuels would set a zero-levy baseline; the levy could be increased with increasing carbon footprint of fuels. This method would require a tax per ton of CO2 ($/CO2) emission equivalent (as an industry benchmark). The three current levy implementation strategies proposed in 2019 by the Technical University of Denmark led by Dr. Harilaos Psaraftis include low, medium and high levy intensity strategies.
A horizontal IMO-imposed levy could be enacted on a gradual basis starting from 2023-24 to account for the current newbuilding orders placed. Current IFO price is at around $280/ton, therefore a carbon levy of $75/ton (even at a [15-25]% initial implementation) would increase fuel costs by approximately [5-7]%. Alternatively, a greater than 70% levy imposition by 2030 could be overly aggressive as it would require the timely development of GHG reduction technologies to avoid the shifting of costs from shipowners to end consumers. This is because total annual costs to the shipping industry would exceed $65 billion (computed based on BP’s Statistical Energy Review & Outlook, 2019). The revenue stream distribution of the carbon levy would have to be carefully allocated by the IMO. Arguably, a significant proportion of the funds would have to be used to finance greener shipbuilding methods (inclusive of R&D required) and end-products (vessels). The policy could also incentivize investment in eco-friendly vessel newbuildings by providing lower carbon taxation rates on vessels with better Energy Efficiency Design Indices (EEDIs).
In conclusion, an industry-wide carbon levy may be an efficient approach towards carbon neutrality in shipping due to its direct implement-ability and cost-effectiveness. Regardless of the method(s) employed, successful and feasible GHG mitigation would need to impact all shipowners fairly; this could be accomplished by accurate assessment of each vessel’s carbon footprint. Achieving the IMO 2050 target will require sound collaboration among regulators, industry players and research and financial institutions which could in turn result in the much anticipated and needed re-designing of the international seaborne landscape.
By Dionysis Kourouniotis
Research & Valuations Department
Compiled by:
Intermodal Research & Valuations
Analysts:
Ms Eva Tzima
Mr.George Panagopoulos
Disclaimer and legal disclosure: For any further queries please do not hesitate to contact our Research & Valuations Department. The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production of the above review, no liability can be accepted for any loss or damage incurred in any way whatsoever by any person who may seek to rely on the information and views contained in this material. This report is being produced for the internal use of the intended recipients only and no reproducing is allowed, without the prior written authorization of Intermodal Shipbrokers Co.
The Information contained within the website of COALspot.com is intended for informational purposes only and is not intended as professional counsel and should not be used as such.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Monday, 24 June 24
PHILIPPINES COAL SUPPLY ENOUGH UNTIL 2030 - PHILSTAR GLOBAL
The country’s existing coal-fired power plants are sufficient to ensure enough base load capacity in the next six years, Energy Secretary Rap ...
Friday, 14 June 24
NEXTDECADE, SAUDI ARAMCO SIGN 20-YEAR LNG SUPPLY DEAL - REUTERS
U.S. liquefied natural gas (LNG) provider NextDecade has signed a non-binding agreement with Saudi Aramco 2222.SE to supply 1.2 million tonnes per ...
Friday, 14 June 24
NEWBUILDING PRICES CLIMB 3% TO HIGHEST LEVEL IN 16 YEARS - NIELS RASMUSSEN
“Since the start of the year, newbuilding prices have risen 3% to their highest level since 2008. Compared to their most recent low in late 2 ...
Friday, 14 June 24
INDIA TARGETS HIGHER DOMESTIC COAL PRODUCTION, REDUCED IMPORTS: GOVT - REUTERS
India wants to reduce coal imports and increase domestic production, federal coal minister G. Kishan Reddy said on Thursday.
The cou ...
Thursday, 13 June 24
US LNG TO ASIA FOR POWER GENERATION EXPECTED TO CUT EMISSIONS VERSUS COAL - RYSTAD ENERGY
The value-chain emissions of liquified natural gas (LNG) are lower on average than for coal-fired power generation, even when the fuel is shipp ...
|
|
|
Showing 16 to 20 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- McConnell Dowell - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Australian Coal Association
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Aditya Birla Group - India
- South Luzon Thermal Energy Corporation
- Indian Oil Corporation Limited
- Thiess Contractors Indonesia
- Kepco SPC Power Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Bayan Resources Tbk. - Indonesia
- GMR Energy Limited - India
- GAC Shipping (India) Pvt Ltd
- Deloitte Consulting - India
- Romanian Commodities Exchange
- Standard Chartered Bank - UAE
- Sarangani Energy Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Oldendorff Carriers - Singapore
- Bhatia International Limited - India
- Straits Asia Resources Limited - Singapore
- Grasim Industreis Ltd - India
- GVK Power & Infra Limited - India
- MS Steel International - UAE
- Tamil Nadu electricity Board
- Anglo American - United Kingdom
- Indian Energy Exchange, India
- Bangladesh Power Developement Board
- GN Power Mariveles Coal Plant, Philippines
- Petron Corporation, Philippines
- India Bulls Power Limited - India
- Parliament of New Zealand
- Independent Power Producers Association of India
- LBH Netherlands Bv - Netherlands
- Carbofer General Trading SA - India
- Singapore Mercantile Exchange
- Rio Tinto Coal - Australia
- Electricity Generating Authority of Thailand
- Bulk Trading Sa - Switzerland
- Price Waterhouse Coopers - Russia
- London Commodity Brokers - England
- ICICI Bank Limited - India
- Energy Development Corp, Philippines
- Australian Commodity Traders Exchange
- AsiaOL BioFuels Corp., Philippines
- Aboitiz Power Corporation - Philippines
- Star Paper Mills Limited - India
- Indogreen Group - Indonesia
- Vedanta Resources Plc - India
- Bharathi Cement Corporation - India
- Posco Energy - South Korea
- Mjunction Services Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Larsen & Toubro Limited - India
- Global Coal Blending Company Limited - Australia
- Bukit Makmur.PT - Indonesia
- Savvy Resources Ltd - HongKong
- Kumho Petrochemical, South Korea
- Interocean Group of Companies - India
- Ceylon Electricity Board - Sri Lanka
- Formosa Plastics Group - Taiwan
- Krishnapatnam Port Company Ltd. - India
- Directorate Of Revenue Intelligence - India
- Jaiprakash Power Ventures ltd
- Kideco Jaya Agung - Indonesia
- Jindal Steel & Power Ltd - India
- Sindya Power Generating Company Private Ltd
- Goldman Sachs - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Gujarat Sidhee Cement - India
- OPG Power Generation Pvt Ltd - India
- Cement Manufacturers Association - India
- Jorong Barutama Greston.PT - Indonesia
- Marubeni Corporation - India
- TeaM Sual Corporation - Philippines
- Intertek Mineral Services - Indonesia
- Sojitz Corporation - Japan
- Malabar Cements Ltd - India
- Parry Sugars Refinery, India
- Simpson Spence & Young - Indonesia
- CIMB Investment Bank - Malaysia
- White Energy Company Limited
- Medco Energi Mining Internasional
- Banpu Public Company Limited - Thailand
- Maharashtra Electricity Regulatory Commission - India
- Orica Australia Pty. Ltd.
- Merrill Lynch Commodities Europe
- Ministry of Mines - Canada
- Therma Luzon, Inc, Philippines
- Wood Mackenzie - Singapore
- Kapuas Tunggal Persada - Indonesia
- International Coal Ventures Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Baramulti Group, Indonesia
- Lanco Infratech Ltd - India
- The University of Queensland
- Chamber of Mines of South Africa
- Holcim Trading Pte Ltd - Singapore
- Eastern Energy - Thailand
- Miang Besar Coal Terminal - Indonesia
- Economic Council, Georgia
- Indo Tambangraya Megah - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Planning Commission, India
- Thai Mozambique Logistica
- Videocon Industries ltd - India
- IHS Mccloskey Coal Group - USA
- Riau Bara Harum - Indonesia
- Siam City Cement PLC, Thailand
- Meralco Power Generation, Philippines
- Trasteel International SA, Italy
- TNB Fuel Sdn Bhd - Malaysia
- Petrochimia International Co. Ltd.- Taiwan
- Gujarat Mineral Development Corp Ltd - India
- Semirara Mining and Power Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Semirara Mining Corp, Philippines
- Kohat Cement Company Ltd. - Pakistan
- San Jose City I Power Corp, Philippines
- Eastern Coal Council - USA
- Iligan Light & Power Inc, Philippines
- Maheswari Brothers Coal Limited - India
- PTC India Limited - India
- Energy Link Ltd, New Zealand
- Sakthi Sugars Limited - India
- Samtan Co., Ltd - South Korea
- Ministry of Finance - Indonesia
- Kobexindo Tractors - Indoneisa
- Bhoruka Overseas - Indonesia
- Coastal Gujarat Power Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ministry of Transport, Egypt
- Commonwealth Bank - Australia
- CNBM International Corporation - China
- Mercator Lines Limited - India
- Siam City Cement - Thailand
- Tata Chemicals Ltd - India
- Africa Commodities Group - South Africa
- European Bulk Services B.V. - Netherlands
- Bhushan Steel Limited - India
- Bukit Baiduri Energy - Indonesia
- Alfred C Toepfer International GmbH - Germany
- VISA Power Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Vizag Seaport Private Limited - India
- Binh Thuan Hamico - Vietnam
- Edison Trading Spa - Italy
- Sical Logistics Limited - India
- ASAPP Information Group - India
- Orica Mining Services - Indonesia
- Manunggal Multi Energi - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- PNOC Exploration Corporation - Philippines
- Sree Jayajothi Cements Limited - India
- Billiton Holdings Pty Ltd - Australia
- Coalindo Energy - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Chettinad Cement Corporation Ltd - India
- Meenaskhi Energy Private Limited - India
- Coal and Oil Company - UAE
- Salva Resources Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Latin American Coal - Colombia
- Ind-Barath Power Infra Limited - India
- Kaltim Prima Coal - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Xindia Steels Limited - India
- Central Java Power - Indonesia
- Ambuja Cements Ltd - India
- Pendopo Energi Batubara - Indonesia
- Renaissance Capital - South Africa
- Kartika Selabumi Mining - Indonesia
- Metalloyd Limited - United Kingdom
- Electricity Authority, New Zealand
- Borneo Indobara - Indonesia
- New Zealand Coal & Carbon
- The Treasury - Australian Government
- PetroVietnam Power Coal Import and Supply Company
- Madhucon Powers Ltd - India
- Global Business Power Corporation, Philippines
- Antam Resourcindo - Indonesia
- Georgia Ports Authority, United States
- Rashtriya Ispat Nigam Limited - India
- Dalmia Cement Bharat India
- PowerSource Philippines DevCo
- Toyota Tsusho Corporation, Japan
- Gujarat Electricity Regulatory Commission - India
- Mercuria Energy - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Port Waratah Coal Services - Australia
- Attock Cement Pakistan Limited
- Central Electricity Authority - India
- Karaikal Port Pvt Ltd - India
- Minerals Council of Australia
- Altura Mining Limited, Indonesia
- SMG Consultants - Indonesia
- Globalindo Alam Lestari - Indonesia
- Indonesian Coal Mining Association
- Agrawal Coal Company - India
- Indika Energy - Indonesia
- Mintek Dendrill Indonesia
- Wilmar Investment Holdings
- Global Green Power PLC Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- IEA Clean Coal Centre - UK
- Heidelberg Cement - Germany
- Uttam Galva Steels Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Neyveli Lignite Corporation Ltd, - India
- SMC Global Power, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Essar Steel Hazira Ltd - India
- Makarim & Taira - Indonesia
- Power Finance Corporation Ltd., India
|
| |
| |
|
