From the US to China and India, the coal sector is under fire, fuelling hopes the industry has entered a period of terminal decline. It wasn’t the best start of 2016 for the global coal industry. It kicked off with reports from China that the government’s ongoing air pollution crackdown will see it close over 1,000 coal mines this year and effectively ban any new coal mine development until 2019 at the earliest. China’s promise to peak greenhouse emissions by around 2030 and its accompanying clean tech investment spree has led to a slowdown in the country’s giant coal market the pace of which has taken all observers by surprise. Meanwhile, hopes that the global coal market would be bailed out by the emerging superpower that is India received a further blow last week as new figures suggested a sharp reduction in the amount of coal the country is importing. According to local media reports, imports fell 34 per cent year-on-year in December continuing a trend that has seen imports fall 15 per cent over year-on-year over the past nine months. This decline is offset to a considerable degree by increased domestic coal production in India, which is being driven by government plans to meet soaring energy demand through a mix of coal and renewables. However, as Tim Buckley, director of energy finance studies at the IEEFA think tank, noted last week there are signs renewables could quickly start to out-compete coal across India. According to the think tank coal plant utilisation rates in India have fallen from 66 per cent three years ago to under 60 per cent this year. Meanwhile, competition from solar power is intensifying. Buckley is sceptical the Indian coal import market will ever recover. “India was essentially the last flame of hope for the beleaguered seaborne thermal coal industry,” he said. “December’s import data confirms the last flicker has been snuffed out, not least for Australia’s Galilee Basin. Indian thermal coal imports look to have peaked in mid-2015, and are now set to permanently and rapidly decline. The IEA’s forecast of sustained thermal coal import growth into India looks outdated even as the latest 2015 report was printed.” Rounding off a tough start to the year for coal firms, late last week new figures from the US Energy Information Adminstration (EIA) revealed US coal production is now at its lowest level since the mid-1980s. An update from the agency confirmed US coal production peaked in 2008 and has been in decline ever since. “US coal production in 2015 is expected to be about 900 million short tons (MMst), 10 per cent lower than in 2014 and the lowest level since 1986,” the EIA said. “Regionally, production from the Appalachian Basin has fallen the most. Low natural gas prices, lower international coal demand, and environmental regulations have contributed to declining US coal production.” There was no respite for US coal producers from the export market. “Although 15.7 MMst of coal was exported to the United Kingdom and Italy in 2014, only about half that volume is expected in 2015, when complete data are available,” the EIA said. There was a similar drop in demand from China and overall the EIA now expects US coal exports to fall 21 per cent in 2015 to MMst. It is easy to see why valuations for coal companies are continuing to fall. Coal may remain one of the world’s primary sources of energy and it will take decades for unabated coal power plants to be removed from the grid. But in all of the world’s major markets the sector is being squeezed by a combination of environmental regulation, renewables, and intense competition from gas. The EIA said that in April 2015, natural gas-fired electricity generation surpassed that of coal-fired generation on a monthly basis for the first time in history, and it did so again in each of the months from July through at least October, the latest monthly data available. There are no sign of any of these trends wavering, particularly in the wake of a Paris Agreement that commits all nations to curbing their carbon emissions. The UK recently declared it would phase out all unabated coal power plants and is hoping to see other nations follow suit. The industry is hoping that emerging markets could drive its revival, but while the coal market is evidently increasingly reliant on the likes of India and Indonesia there are still considerable challenges for the sector, not least in the form of commitments from the World Bank and others to only invest in coal infrastructure in extreme circumstances. In the wake of the Paris Summit a leaked email from Brian Ricketts, secretary-general of the European Association for Coal and Lignite, ranted about how fossil fuels had been “portrayed as public enemy number one” and the coal industry was at risk of being “hated and vilified in the same way that slave traders were once hated and vilified”. However, if the latest figures are to be believed it is not necessarily public condemnation the coal industry should be worried about, so much as simple economic forces. If there really is a war on coal underway there appears to be only one winner, and it is not King Coal.  

Energy infrastructure firm says biogas is becoming an important part of the UK energy mix. Energy infrastructure firm Fulcrum has announced it is to target the UK’s expanding renewables market by providing pipes to link anaerobic digestion (AD) plants to the gas network. The new venture, which will see Fulcrum fit pipes to feed biogas into the UK gas distribution network, marks an expansion of its core business of linking homes and businesses to the gas network. “Biogas is becoming an important part of the UK’s energy mix and there is real potential for it to take an even greater role in the future,” Martin Donnachie, Fulcrum’s chief executive, in a statement. The Sheffield-based firm has previously delivered a series of high profile projects, including providing gas infrastructure for the Olympic Park, Athletes Village and the Olympic Cauldron for the London 2012 games. It is also contracted by British Gas to provide connections to properties until at least 2018. Donnachie said Fulcrum’s gas infrastructure experience means it is well placed to also support AD operators in the construction and commissioning of new plants. “Our track record in the gas industry, together with our excellent working relationship with the Gas Networks, will be of real benefit to the sector and support its ambitions to increase its contribution to the UK’s energy requirements,” he said. Biogas is a methane rich gas created from the anaerobic digestion of sewage, food and industrial waste. Figures released by DECC last summer showed AD capacity outside of the water industry increased by nearly a third during 2014, from 164MW to 216MW. Meanwhile, industry insiders say the recent increase in funding for biogas projects through the Renewable Heat Incentive (RHI) scheme could result in a major rise in the number of AD plants in the coming years from the 40 currently to around 180 by 2021.

Boris Johnson has called on the government to slow down its planned cuts to solar subsidies to protect more than 3,000 jobs in London. The mayor of London was responding to a Department of Energy and Climate Change consultation on the proposed 87 per cent cut to feed-in tariffs. In a letter to energy minister Andrea Leadsom, deputy mayor for environment and energy Matthew Pencharz wrote that the reductions in FiTs should be phased “over a two-three year period”. He wrote: “The mayor believes that the solar PV industry needs some certainty over the next few years as it transitions to a subsidy-free and long-term sustainable future.” Mr Pencharz, writing on behalf of Mr Johnson, continued: “Unfortunately the current proposals, which have been consulted on, with little or no prior warning, to come into force in the new year has (sic) created great uncertainty in the solar PV industry, potentially putting at threat thousands of jobs across the UK. “The mayor is concerned about the potential impact on the 3,100 jobs, mainly in SMEs, which make up the solar PV industry in London.” He added that phasing in the cuts “would provide a clear pathway” for the industry, “reducing the impact of business and job losses”. Earlier this week, Ms Leadsom told a committee of MPs that she was “open-minded” over the consultation, which closes today (Friday 23 October). A number of solar installation firms have gone into forced being closed or sell off parts of their business after the government’s plans were announced, with experts claiming that thousands of jobs could be lost across the industry. Sustainable Homes managing director Andrew Eagles said the changes, along with other government policies affecting the renewables sector, had created “a perfect storm”, that could affect “tens of thousands of jobs”.

https://youtu.be/Y9CVh-K4XgQ   Blyth Utilities is to play a major role in a new UK-wide multi-utility infrastructure brand following its acquisition (on December 10, 2015) by Energy Assets Group.   Blyth, based in Alva, Clackmannanshire, is a leading utility infrastructure provider to industrial and commercial and residential developers in Scotland and the north of England, and, together with Energy Assets’ Siteworks division, will play a key role in Energy Assets Utilities – a new brand that from January next year will deliver multi-utility infrastructure projects across the country.   Colin Lynch, Joint Managing Director of Blyth, said:   “Since its incorporation in 2003, Blyth has grown to around 80 employees but as a company it is now time for us to go to the next level. We are delighted to have the opportunity to grow the business further by being part of the Energy Assets Group and are confident that the support that Energy Assets can offer will allow us to achieve our long term growth strategy.”   Energy Assets is the largest independent provider of industrial and commercial (I&C) gas metering services in the UK and a major provider of utility infrastructure services and electricity metering and data services.   The deal will see the launch of Energy Assets Utilities, integrating Blyth with Siteworks’ industrial and commercial gas infrastructure operations. Both companies are accredited under the Gas Industry Registration Scheme (GIRS), but with Blyth’s National Electric Registration Scheme (NERS) and Water Industry Registration Scheme (WIRS) accreditations, the new brand will deliver multi-utility infrastructure projects in both the I&C and house building sectors across the UK, utilising Energy Assets’ footprint.   The new brand will position Energy Assets as a fully accredited multi-utility infrastructure provider in the commercial arena while extending opportunities in the UK house building sector at a time when the government is set to double investment to support home ownership and deliver new homes. The Group will also examine the opportunity arising from this acquisition to grow a pipeline asset portfolio, utilising its existing Independent Gas Transporter (IGT) licence.   Russell Gibson, Chief Operating Officer of Energy Assets, commented:   “Blyth and Siteworks share a common vision of how best to deliver high quality, responsive and competitive provision of utility infrastructure, and by integrating the respective skills, processes and resources of both organisations, the resulting Energy Assets Utilities brand will be perfectly position to meet the infrastructure needs of I&C businesses and house builders across the UK.   “I am delighted to welcome Blyth into the Energy Assets Group in an acquisition that represents another step in our continuing growth strategy.”   Link to video: https://youtu.be/Y9CVh-K4XgQ

At a port operator in the UK, an extremely durable chocking system was required to ensure a new boiler would remain secure and protected, even when subjected to aggressive vibration activity. Belzona’s Technical Service Engineer, Henry Smith, who assisted with the application said, “Located on a dredger, the boiler was situated just next to the engine room. Due to this proximity, the operator required the chocking system to exhibit exceptional impact resistance in order to withstand constant vibration attack caused by the engine machinery. A further requirement was for the application to be carried out as quickly as possible, ensuring minimal downtime was incurred and therefore minimal profit loss.” Bad Vibrations The long-term success of any chocking installation is determined by how well the machinery system is joined to the foundation. The base plate of the machinery system must become a monolithic member of the foundation system in order to ensure minimal vibration activity is achieved. If this system is insufficient, excessive vibration can lead to machinery failure; bolts can become slack, and in more severe cases, equipment can become misaligned. A conventional chocking solution commonly employed to combat vibrations is metal shimming. However this technique can often be difficult to install and can loosen over time. Another option involves cement grouting, but not only does cement have poor mechanical properties, this method can incur significant cure time and will therefore require longer downtime. Belzona Specification Following a Belzona inspection, the operator decided to chock the boiler into place using Belzona 7111 (Marine Grade). This two-component material is specially designed for use as a chocking or grouting compound to endure the physical and thermal shock common to marine environments. DNV GL approved and certified by major classification bodies including Lloyd’s Register Marine and the American Bureau of Shipping, Belzona 7111 is the ideal solution to withstand the damaging vibrations on the dredger. The simple pouring method enables the application to be carried out with minimal downtime, while the high impact properties of the material will ensure the boiler will remain secure for the long term. In fact, when the impact resistance was tested using Izod Pendulum impact testing in accordance with ASTM D256, Belzona 7111 achieved 0.75 J/cm (un-notched). This indicates that when the chocking material is subjected to impact forces, the material will successfully absorb the shock, thus minimising the impact damage. Simple Application Method The boiler was set into place using jacking bolts, and dams were built around each of the individual bolts in order to ensure a restricted chocking area. Belzona 7111 was then poured into the prepared areas. Due to the way in which the boiler sat inside the engine room, there was limited access underneath which made it difficult to pour the product directly from the mixed unit into the chock area. A small curved steel section was therefore used as a channel to funnel the product, with a thickness of just over 2 inches, into the correct area. Once the application was completed and the system had cured, the dams were removed. Fast Application and Cure Ensures Minimal Downtime Dredgers are an important part of the world’s commerce system as much of the world’s goods travel by ship, and therefore need to access harbours or seas via channels. Thus the requirement of a fast-curing chocking material that incurs minimal downtime is critical in insuring this transport method does not become impaired or hindered. In this situation, as Belzona 7111 took just two hours to apply and only 48 hours to cure, this enabled the dredger to successfully continue its operation with minimum downtime and disruption. Furthermore, as Belzona had fully trained the operator and their application team on Belzona chocking applications, this enabled the application to be carried out on site without the need for an external representative; saving the operator unnecessary capital expenditure.

Stainless UK have supplied over 200 stainless steel ribbed bars to SES Contracting for use in the latest phase of a rock bolt renewal programme at Dinorwig Power Station in North Wales. Dinorwig Power Station was opened in 1984 and remains the largest pumped storage power station in Europe. The power station itself is located inside a mountain with lakes above and below it. It is used to provide almost instant power for the National Grid at times when demand suddenly increases or there is a loss of power from other stations. At such times the gates holding back the water in the top lake are opened and the water passes through the 6 generating turbines housed in the mountain and then on into the bottom lake. The generating turbines are located in an enormous cavern within the mountain and are serviced by a 16km network of tunnels. As part of an ongoing programme to maintain the stability of the bare bedrock in the tunnels, Stainless UK manufactured 25mm diameter ribbed bars with threaded ends in lengths of up to 6m for use as rock bolts. The duplex stainless steel bars were resin fixed into holes drilled into the rock and then tensioned using a 15mm thick stainless steel end plate. Stainless UK are specialists in the manufacture of stainless steel rock bolts and have supplied a number of similar applications to this including Lochay hydro electric power station in Scotland.

Amec Foster Wheeler announces today its founding membership of the Capital Deliver Alliance (‘the Alliance’), launched by UK Power Networks. Alongside three other key supply chain companies the Alliance will operate together as one body to implement a major £1 billion infrastructure programme over the next 12 years. The four UK Power Networks partners are Amec Foster Wheeler, Clancy Docwra, McNicholas and Morrison Utilities Services. Working collaboratively with UK Power Networks, the four companies will refurbish and upgrade electricity substations, cables and power lines across London, the East and South East to achieve greater efficiency and innovative ways of working – to deliver excellence in service to UK Power Networks’ customers. Representatives from all the companies will be based in one London office to enable them to operate as one entity and progress an agreed work plan. Marc Boulter, Managing Director of Amec Foster Wheeler’s Transmission & Distribution business, said: ‘As part of the Alliance, we will use our global expertise and experience to help deliver safe, innovative resilient solutions to support the energy transition for London, the East, South-East and for our customer.’

Experts at Focus Consultants are playing a key role in a £2m development to build 19 new industrial units, which have scope to create or safeguard almost 300 jobs in coming years. The company is providing a number of services for the North Kesteven District Council Blackwood Court development on North Hykeham’s Teal Park in Lincolnshire, including support project management, employer’s agent, principal designer/CDM advisor and BREEAM assessor. Lindum Construction is building the scheme for North Kesteven District Council, which is part of the council’s commitment to attracting and supporting start-up businesses. The units will range in size from 500 sq ft to 2,000 sq ft and will be used for a wide range of uses from storage and distribution to general industrial premises. Trevor Newton, partner at the Boston office of Focus, said: “Focus Consultants is very pleased to have been appointed by North Kesteven District Council to be a member of the team building Teal Park, which should prove very important to the economic development of the area. “As a company, we provide a number of different services that are relevant for such developments, and professionals from both our Lincolnshire offices and our Leicester office are involved with this scheme.” The units are due to be completed by mid-February, with lettings likely to start around the New Year. Focus, which is based at Phoenix Business Park, Nottingham, and has offices at Boston and Aubourn in Lincolnshire, and in Leicester and at Holborn in London, offers services to the property and construction industry, including building surveying, contract administration, party wall surveying, clerk of works, quantity surveying, project management, CDM services and BREEAM assessments and energy calculations and modelling. The company also specialises in funding and economic development including area regeneration strategies, funding applications, economic impact appraisals, business plans, and research and evaluation.  Since 1994 Focus has secured for clients more than £953 million of grants for projects and businesses across the UK and delivered more than £1.3 billion worth of projects and programmes – making it one of the most successful businesses of its kind in the country. Teal Park is a strategic allocated employment site, granted outline planning permission in 2011 for a total of 133,720m2 of employment floor space, a hotel, public house, leisure and trade showrooms. It is home to Siemens’ industrial gas turbine service business which occupies around a third of the space. Under the GrowLN6 project, the wider LN6 area is a focus for coordinated partnership work by NKDC, City of Lincoln Council and the County Council to attract new inward business investment and expansion. The photo shows partners lined up to mark the official start on site. For more information visit www.focus-consultants.co.uk