With power generators in the UK deciding to cut down on the coal consumption, South Africa is likely to feel the pinch.
According to reports, the UK power generators are falling in line to meet the new ruled regarding nitrogen oxide emissions and that might pull down South Africa’s coal export to its major market in Britain.
South Africa, UK’s second largest supplier of coal, exported nearly 12 million tonnes of the fuel last year and it was discovered that most of the import produces far more nitrogen oxides that other coal origins.
Accordingly, the UK power generators said, they are expecting a slight fall in imports in the wake of the European Union’s Large Combustion Plant Directive (LCPD) which seeks to put a cap on the emissions of nitrogen oxides and sulfur dioxide, called NOx and Sox in the industry.
Coal traders in South Africa, however, are not losing sleep over this prospect and said they can more than make up for the slight loss with an extra demand from India, which is likely to increase its coal import to 10 million tones, a whopping rise from last year’s 3 million tones.
In UK, only Drax Power is not going to buy South African coal anymore once the new rules come into effect. Other generators have decided to persist with it though they will buy slightly less.
Photo: Farrworld