Articles in Category: Green

One of the major gripes about environmental legislation is that while the West creates ever stricter laws and ever lower emissions targets, many parts of the world completely flout agreements or do not even sign up to them in the first place.

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The steel industries of Europe and the U.S. frequently complain that they must meet tough emission targets that their competitors in China, India and elsewhere can avoid either because their governments have not signed up to such restrictions, or because they simply are not enforced.

The True Cost of Air Pollution

Well, finally after years of complaints it appears the tide is turning but tragically it has come about due to an appalling loss of life that is only just being recognized. Air pollution alone causes 6.5 million early deaths a year the Guardian newspaper reports. That is double the number of people lost to HIV/AIDS, tuberculosis and malaria combined, and four times the number killed on the world’s roads. In Africa, air pollution kills three times more people than malnutrition. Read more

A Washington, D.C. federal judge refused Monday to halt construction and drilling on the recently approved, eight-mile final stage of the Dakota Access pipeline, rejecting the Cheyenne River Sioux Tribe’s plea for a temporary restraining order to ostensibly protect a religiously and culturally significant lake.

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A similar challenge was rejected by another federal judge last year.

Philippines Environment Czar Cancels 75 Mining Contracts

The Philippines’  Environment Ministry, under the direction of Environment and Natural Resources Secretary Regina Lopez, on Tuesday ordered the cancellation of 75 mining contracts, stepping up a campaign to stop extraction of resources in sensitive areas after earlier shutting more than half of the country’s operating mines, Reuters reported. The contracts are all in watershed zones, with many in the exploration stage.

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They cover projects not yet in production and the latest action by Lopez suggests she will not allow them to be developed further. The move turns up the heat in her battle with the mining sector after she ordered the closure of 23 of the country’s 41 mines earlier this month on environmental grounds.

China announced last year it had implemented ambitious cuts in steel capacity. Now, a new report says that not only did those cuts not happen, but China actually increased steel production capacity.

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But a new report by Greenpeace East Asia and Chinese consultancy Custeel says that number was largely smog and mirrors. Many of the plants China says it closed down were already idle, while production was restarted elsewhere and brand new plants opened.

China, which accounts for half the world’s steel production, has a total capacity of 1.1 billion metric tons, announced plans to eliminate 100-150 mt of annual production over the next five years.

Last year, it said it had far exceeded its initial target to cut capacity by 45 million mt, which China said its steel sector exceeded, recording total 2016 cuts of around 85 mmt.

But the Geenpeace/Custeel report said that 73% of the announced cuts in capacity were already idle — in other words the plants were not operating. Only 23 mmt of cut capacity involved shutting down production plants that were operating.

At the same time, some 54 mmt of capacity were restarted, and 12 mmt of new operating capacity came online.

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That left China showing a net increase in operating capacity of 36.5 mmt last year, a figure that is consistent with a 3% increase in steel production in the second half of last year.

Such an increase is consistent with evidence of a deterioration in the air quality in Beijing in the second half of last year — the steel industry is a heavy consumer of coal and contributor to air pollution, and most of the restarted capacity came in the industrial provinces near the capital, Shanxi, Hebei and Tianjin.

The American Iron and Steel Institute Board of Directors has approved a public policy agenda outlining an aggressive, pro-manufacturing policy to guide advocacy for the upcoming year and highlight importance of the steel industry to the success of the American economy.

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“The impact public policies have on manufacturers must be carefully considered to ensure economic growth and our national security. Our 2017 Public Policy Agenda highlights a concerted effort on behalf of members of the North American steel industry to combat foreign unfair trade practices, create jobs, highlight our innovations and sustainability, and strengthen the manufacturing base,” said Thomas J. Gibson, AISI president and CEO. “We will be sharing our priorities with policymakers and government leaders, and look forward to working together to turn obstacles into opportunities.”

Highlights AISI priorities for 2017 include:

  1. Press China and other nations to eliminate their steel overcapacity and to end all subsidies;
    Enforce aggressively and expeditiously U.S. unfair trade laws.
  2. Defend the right to treat China as a Non Market Economy at the WTO.
  3. Improve the implementation of the ENFORCE Act against trade law evasion.
  4. Reduce the corporate tax rate to 15-20% while maintaining accelerated cost recovery.
  5. Revise the EPA Clean Power Plan and the New Source Performance Standard for utility greenhouse gas emissions.
  6. Ensure the approval and completion of the Keystone XL and Dakota Access pipelines and  facilitate investment in our national energy infrastructure.
  7. Withdraw EPA’s final determination for the light-duty vehicle GHG standards for model years 2022-2025.
  8. Ensure infrastructure funding is accompanied by reforms that streamline permitting and approval of large projects to speed project delivery time and reduce added cost.
  9. Direct increased funding of infrastructure improvements towards long-term, multi-year projects.

President Donald Trump is expected to take executive action Tuesday to advance construction of the Keystone XL and Dakota Access oil pipelines Trump told reporters before a meeting at the White House this morning. The president is scheduled to sign orders at the White House later today.

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Former President Barack Obama stopped TransCanada Corp.‘s proposed Keystone XL pipeline in late 2015, declaring it would have undercut U.S. efforts to clinch a global climate change deal that was a centerpiece of his environmental legacy, a deal that Trump has said he will pull the U.S. out of.

The pipeline would run from Canada to U.S. refineries in the Gulf Coast. The U.S. government needed to approve the pipeline because it crossed the border with its northern neighbor. Read more

After filing for chapter 11 bankruptcy protection last year and subsequently being declared “hopelessly insolvent” by a judge, U.S. energy giant SunEdison Inc. is winding down its operations in India.

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SunEdison is exiting its India business by selling 1.7 gigawatts of wind and solar farms to Greenko Energies Pvt.

Foreign Investment

Greenko is backed by the sovereign wealth funds of Abu Dhabi and Singapore. The two sites include one with 440 megawatts of capacity already operating and another 1,200 mw of projects still under development including a 500 mw solar project. Reports pegged the projects total assets value at about $500 million. Read more

In this most-read post of 2016, we look back at the steel scrap market on May 3, 2016. Steel-Insight‘s James May argued that, while North American scrap prices were up, they couldn’t stay up long.

The steel scrap market (and raw steels overall) would not fully recover until Fall. — Jeff Yoders, editor

U.S. shredded scrap prices started 2015 at $350 per long ton delivered to Midwest steel mills.

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Barring a very brief rally in June, the price fell every month over the year and dropped to $170/long ton in December. Indeed, if we look at the chart, U.S. ferrous scrap prices have been in a downtrend since late 2013.

U.S. Shredded Scrap Prices ($/long ton delivered US Midwest Mill)

steel_insight_scrap_300_050116

Source: Steel-Insight.

When prices fall every month, scrap yards and steel mills reduce their purchases to the bare minimum as they expect to be able to procure material at a lower price the very next month. Read more

Japanese electronics company Panasonic and U.S. electric car maker Tesla said today they plan to begin production of solar cells at a factory in Buffalo, New York.

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The two companies said they finalized an agreement calling for Tokyo-based Panasonic to pay capital costs for the manufacturing. Palo Alto, California-based Tesla made a “long-term purchase commitment” to Panasonic.

Their statement gave no financial figures. The factory in Buffalo is under development by SolarCity Corp., a San Mateo, California-based solar panel company owned by Tesla. The photovoltaic cells and modules will be used in solar panels for non-solar roof products and solar glass tile roofs that Tesla plans to begin making, the announcement said.

LME Names New Clearing Executive

The London Metal Exchange has appointed James Proudlock as deputy chief executive of its clearing system, the exchange said last week.

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Proudlock, who has 30 years experience in commodities, will join LME Clear in April next year.”Prior to joining LME Clear, James worked at JP Morgan Securities for 10 years where he was a managing director and commodity product lead for Futures and Options and most recently markets execution,” the LME said.

Six years its first proposal, Indian mining giant Adani seems as if it’s finally ready to start its $16.5 billion coal project in Queensland, Australia.

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The company recently secured the approval for a permanent rail line for what’s known as the Carmichael project. An official statement by the company said Queensland’s Coordinator-General had given “the latest, and final, secondary approval” for about 19-and-a-half miles of permanent track, as well as a 300-bed camp.”

The permission will add to the nearly 242 miles of heavy haul track connecting the mine to Abbot Point port. Chief Executive of Adani Australian, Jeyakumar Janakaraj, said in a press statement, “We are particularly focusing on the construction of our planned near-400-kilometer (248 miles) rail line to be constructed between the Carmichael mine and our bulk port facility at Abbott Point near Bowen.”

When fully operational, the mine will reportedly be the largest in Australia, involving the dredging 3.53 million cubic feet of soil near the Great Barrier Reef Marine Park. The project will ensure Adani a steady supply of coal to be used for electricity generation, benefiting a hundred million Indians.

The proposed project ran afoul with green groups in Australia, quickly taking on a “jobs versus ecology” dimension. As per some claims, the project is likely to create at least 11,000 jobs, and the company has promised to farm these out to locals, and not bring in labor from abroad.

After getting approval, Adani Group Chairman Gautam Adani met Australian Prime Minister Malcolm Turnbull, amid protests from groups in Melbourne. Adani has said the project will start in the new year.

Supporters of the project insist mines such as these will provide an economic stimulus to North Queensland.

Matt Canavan, Minister for Northern Australia, was quoted in a section of the media as saying this would be the first time a new minerals basin would be opened up in 40 years.

Adani also announced that it will set up regional centers for providing vital support services for the project and associated infrastructure and headquarters for its rail and port operations.

Townsville would become Adani mining’s regional headquarters, while the Mackay-Bowen area would become the regional headquarters for its rail and port operations. Adani said its shift to the regional Queensland centres would allow it to more directly harness local skills.

The project has faced a lengthy environmental approval process and a number of court challenges. Earlier, this year, it finally got Queensland government approval to mine. Some say, however, that while the Carmichael mine has the final government approvals, there are still a few hurdles it has to surmount.

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An appeal has been lodged with Australia’s full Federal Court seeking to overturn the Commonwealth approval, and is due to be heard in March.

Alcoa, Corp. recently launched new aluminum product lines produced with low carbon emissions and recycled content. The new sustainable line includes two key product categories:

  • Ecolum: a range of cast products among the least carbon-intensive products available today, yielding a 75% lower carbon impact than the industry average.
  • Ecodura: aluminum billets made with a minimum of 50% recycled content and use up to 95% less energy to manufacture when compared to products with no recycled material.

Alcoa said ecolum products will qualify for Leadership in Energy and Environmental Design (LEED) certification from the U.S. Green Building Council and, as such, the company is preparing Environmental Product Declarations for the building and construction market that helps customers achieve LEED materials and resources credits.

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Only plants that operate on hydro-electric power that meet the emissions requirements for the ecolum guarantee of less than 2.5 metric tons of CO2 emissions per metric ton of aluminum. The ecodura products can be produced at any facility that has the ability to remelt scrap.

Aluminum Rod

Ecolum aluminum rod produced at Alcoa’s Fjardaál hydro-electric smelter in Iceland. Source: Alcoa.