Centennial Coal parent company signals exit from fossil fuels
The Thai energy company that owns Centennial Coal has announced it will not invest in new coal assets, casting doubt on its plans to re-open and expand the Angus Place colliery near Lithgow.
CEO Somruedee Chaimongkol told online business magazine CNBC her company, Banpu Public Company, was committed to making the company a leader in clean energy. [1]
According to Banpu’s 2020 annual report, 95% of the company’s profits came from coal investments. Ms Chaimongkol has signaled her intention to slash that to 50% by 2025.
CNBC also reported the company “won’t invest in new coal assets” and would pump money into renewables.
The Energy Australia-owned Mount Piper power station near Lithgow is currently supplied by Centennial Coal Springvale Colliery, which is forecast to run out of viable reserves by 2024.
By then, Centennial Coal hopes to have received planning approvals to reopen and expand its mothballed Angus Place colliery.
The expansion will destroy several wetland ecosystems by cracking the underlying rock formations and draining them of water.
“In the circumstances, the Energy Australia should be investigating alternative coal supplies in the short-term and a more rapid switch to renewables in the medium-term,” Nature Conservation Council Chief Executive Chris Gambian said.
“With global coal companies shifting from coal to clean energy, diversifying Lithgow’s economy is more important than ever.
“Just last December, Centennial Coal narrowly avoided a debt default when Banpu bailed the company out to the tune of $150 million.” [2]
Banpu also announced on Monday it had bought two large-scale solar farms in NSW: the Beryl Solar Farm near Gulgong (110.9 MW) and Manildra Solar Farm west of Orange (55.9 MW). [3]
These facilities are Banpu’s first two utility-scale renewable generation assets in Australia, but will likely not be their last.
In a statement posted on its website on June 7, the company said the purchases were “an important step in laying the foundation in terms of strategic investments in clean energy and expanding Banpu’s energy ecosystem in Australia, in line with the company’s Greener & Smarter strategy”. [3]
Mr Gambian said Banpu’s pivot to renewables is the latest in a string of announcements by coal companies seeking to limit their exposure to coal and expand into clean-energy.
“This trend is sure to accelerate as more wind, solar and storage capacity enters the market,” he said.
“Last week, Energy Australia announced plans to establish a pumped hydro facility near Lithgow, which will help the city maintain its position as a key player in the state’s electricity sector.
“Lithgow is the centre of several other clean-energy projects, including a big battery and an eco-precinct on the old Wallerawang power station site and a push for an electric bus manufacturing plant. [4]
“These sorts of initiatives will help Lithgow thrive as the economy moves past coal-fired power to clean, renewable wind and solar.
“With 850 MW of clean, dispatchable generation projects in the pipeline for Lithgow, and a large renewable energy zone under development in the Central West, the energy future beyond coal is starting to take shape.”
[2] The Australian Financial Review reported on January 8 this year that Banpu subscribed for $150 million new shares in Centennial shortly before Christmas as part of efforts to settle a debt Centennial had due in December 2020.
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