Late last month, the Netherlands turned back to the use of coal as the invasion of Ukraine, which sparked an energy crisis, rages on. The Dutch stated that they would lift restrictions on fossil-fuel powered stations, which had before then been limited to one-third of output.
Vienna and Berlin also made similar announcements as Russia, which is facing sanctions over its Ukraine invasion, cut its supply of gas to Europe. Moscow’s invasion has sent prices for energy around the globe skyrocketing, which has in turn raised the likelihood of shortages if the chain of supply was to be interrupted.
Gazprom, the Kremlin’s state-owned multinational energy corporation, has already halted deliveries to a number of European nations, including the Netherlands, Finland, Bulgaria and Poland.
Rob Jetten, Dutch climate and energy minister, stated in the Hague that the cabinet had made the decision to lift the restriction on production in coal-fired power stations until 2024. Jetten also told journalists that while the country wasn’t facing an acute shortage of gas at the moment, the government was appealing to companies to save as much energy as they could before the winter season.
The Netherlands depends on the Eastern-European country for about 15% of its gas supplies. This is quite low, in comparison to the European Union’s 40%.
On the other hand, Germany stated that it was still focused on closing its coal power plants by 2030, taking into consideration the climate change caused by carbon dioxide emissions from coal. Stephan Gabriel Haufe, Germany’s spokesman for the economy ministry, stated that the coal exit date remained set. The country is facing challenges, however, given its heavy reliance on imports from Russia.
Germany’s decision to use coal in its power plants came after Moscow halted deliveries to the country via the North Stream gas pipeline in June. This move, which Gazprom has cited as a technical issue, is being regarded by Berlin as a political move. Robert Habeck, the country’s economy minister, stated that the decision to begin using coal again was tragic but essential for decreasing the consumption of gas.
Meanwhile, the Austrian government also announced that it would reopen a coal power station in the city of Mellach due to increasing power shortages brought about by decreased gas deliveries from Russia. The country’s authorities revealed that they would work with Austria’s primary electricity supplier, the Verbund Group, to get the station up and running.
As more countries revive their coal energy plants, coal extraction companies such as Peabody Energy Corporation (NYSE: BTU) could be in for unprecedented profitability at a time when the world was gearing up to say good-bye to coal and switch to greener sources of energy.
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