International consulting company Environmental Resources Management (ERM, the United Kingdom) will provide assistance to the Energy Ministry in the implementation of the program for the transformation of coal regions, the Energy Ministry said on its website on late Thursday. According to the report, ERM, which specializes in drafting sustainable development projects, presented a draft plan for a pilot project for the transformation of coal regions on May 13.
It is noted that in preparation for the project, British and Ukrainian specialists must determine the coal region where the pilot project will be implemented, conduct preliminary consultations with stakeholders and develop a transformation plan directly by late March 2022.
The program, which provides for drafting a project for a fair transformation of one of the coal regions of Ukraine, is funded by the British government, the Energy Ministry said.
As reported, in March this year, the Canadian mining company Black Iron, which is implementing a project to create a new iron ore project in Kryvy Rih (Dnipropetrovsk region), announced the involvement of Environmental Resources Management to conduct an environmental and social impact assessment (ESIA).
ERM was selected to lead this ESIA based on their highly regarded global reputation of expertise in this field that includes several successful projects also conducted in Ukraine.
ERM has over 140 offices globally with headquarter in London.
In the second half of March, the Energy Ministry, headed at that time by Yuriy Vitrenko, withdrew for revision the concept of reforming the coal industry, which envisages, in particular, the merger of promising mines with PJSC Centrenergo and subsequent privatization and liquidation of unprofitable enterprises.
Ukraine in January-March 2021 increased imports of coal and anthracite (foreign economic activity code 2701) by 18.6% (by 813,072 tonnes) compared to the same period in 2020, to 5.194 million tonnes. According to the State Customs Service, coal was imported for $474.508 million, which is 0.4% more than in January-March 2020 ($472.525 million).
The Russia supplied coal worth $286.862 million (the share of imported coal is 60.45%), the United States for $107.046 million (22.56%), Kazakhstan for $56.851 million (11.98%), other countries for $23.75 million ( 5.01%).
Ukraine’s export of coal over the first three months of 2021 amounted to 204 tonnes for $25,000, while in the first quarter of 2020 it was not exported. In particular, export to Hungary was worth $11,000, Belarus some $7,000 and Bulgaria some $7,000.
Ukraine in January-October 2020 reduced import of coal and anthracite (foreign economic activity code 2701) by 19.4% (by 3.359 million tonnes) compared to the same period in 2019, to 13.966 million tonnes.
According to the State Customs Service of Ukraine, coal was imported for $1.432 billion, which is 39.4% less than in January-October 2019 ($2.365 billion).
Coal came from Russia for the tune of $869.797 million (a share in imports of 60.74%), the United States for $427.945 million (29.88%), Kazakhstan for $96.257 million (6.72%), and other countries for $38.09 million (2.66%).
In the first 10 months of 2020, Ukraine exported 2,255 tonnes of coal for $0.186 million, compared with 13,318 tonnes for $0.527 million during the same period in 2019, including $0.156 million to Poland, $0.027 million to Moldova and $0.004 million to Hungary.
Ukraine in January-September 2020 reduced imports of coal and anthracite (foreign economic activity code 2701) by 14.9% (by 2.234 million tonnes) compared to the same period in 2019, to 12.717 million tonnes.
According to the State Customs Service, coal imports amounted to $1.322 billion, which is 36.7% less than in January-September 2019.
At the same time, coal was imported from the Russian Federation for $796.222 million (60.22% of total imports), the United States for $400.793 million (30.31%), Kazakhstan for $87.431 million (6.61%), other countries for $37.712 million (2.85%).
Ukraine’s coal export for the eight months of 2020 amounted to 2,024 tonnes for $163,000 versus 13,157 tonnes for $508,000 in January-September -2019, in particular to Poland for $156,000 and Moldova for $7,000.
The duty of 65% on coal imported from the Russian Federation to Ukraine with some exceptions is imposed from April 15, 2020, according to government resolution No. 261 dated March 18.
The exception is anthracite coal, bituminous coal and coking coal for metal industry, as well as lean coal for companies generating electricity and heat.
The imposition of the duty on imported electricity earlier announced at the government meeting is not envisaged in the document.
PJSC Donbasenergo plans to increase the consumption of Ukrainian coal at Sloviansk thermal power plant (TPP) from 55% to 70%, Donbasenergo Board Chairman, CEO Eduard Bondarenko has said.
“To date, we use 55% of grade G domestic coal at Sloviansk TPP, the rest is imported anthracite. However, we are working to increase the burning of Ukrainian coal at Sloviansk TPP to 70%,” he told Interfax-Ukraine.
According to the CEO of Donbasenergo, the company has been actively working over the past few years to reduce the dependence of Sloviansk TPP on imported anthracite, but cannot switch to grade G domestic coal completely due to the design specifics of the plant.
“There is a separate dust factory on the territory of Sloviansk TPP, which delivers coal dust to the boilers through pipes. At other plants, coal dust is produced directly under the boilers, and here it is almost one kilometer of distance. The gas group of coal is unsafe and it is hard to completely switch to grade G. This requires a long closure of the plant and a very large investment that will never recover the costs. This is confirmed by all design institutes, both national and foreign, which we turned to for examination,” Bondarenko said.
In addition, the project for the construction of a new sixth unit at Sloviansk TPP is based on the circulating fluidized layer technology, which will allow the burning of low-grade and low-calorie grade G coal, as well as waste coal without natural gas.
“This coal is available to us in the territory of Donbas controlled by Ukraine,” the CEO of Donbasenergo said.
According to him, in the case of obtaining a government guarantee and involving financing from the Bank of China, the construction of the sixth power unit with a total capacity of 600 MW will take 48 months. The commissioning of power unit No. 6 A is planned in 43 months, and power unit No. 6 B in another five months.
Donbasenergo owns Starobesheve (located in the occupied territory) and Sloviansk TPPs with the total installed capacity of 2,880 MW, in particular the capacity of Sloviansk TPP is 880 MW. At the end of March 2017, the generation company announced the loss of control over Starobesheve TPP, as well as part of structural units located in the temporarily government uncontrolled territory.
PJSC Energoinvest Holding owns 60.86% of the shares of Donbasenergo, another 25% of the shares of the generating company are owned by the state. Currently, Maksym Efimov is the head of the company.
