Europe turns to coal as Russia squeezes gas supplies
German Economy Minister Robert Habeck has warned that the situation is going to be “really tight in winter” without precautionary measures to prevent a supply shortage.
Ina Fassbender | Afp | Getty Images
Reduced flows of Russian gas and the specter of a full supply disruption have prompted some European governments to reconsider coal, one of the dirtiest and most polluting ways of producing energy.
It has stoked fears that the energy crisis could see Europe delay its transition away from fossil fuels, although policymakers insist the burning of coal is a necessary stopgap to help prevent a winter supply shortage.
Coal is the most carbon-intensive fossil fuel in terms of emissions and therefore the most important target for replacement in the pivot to alternative energy sources.
However, Germany, Italy, Austria and the Netherlands have all indicated that coal-fired plants could be used to compensate for a cut in Russian gas supplies.
Russia’s state-backed energy giant Gazprom has cut capacity via the Nord Stream 1 pipeline that runs to Germany under the Baltic Sea, citing the delayed return of equipment serviced by Germany’s Siemens Energy in Canada.
It’s not clear when — or if — Nord Stream 1 gas flows will return to normal levels.
The critical thing now is that they ensure that any new measures are temporary, and that we are on the pathway to fully exit coal in Europe by 2030 at the latest.
Mahi Sideridou
Managing director at campaign group Europe Beyond Coal
German Economy Minister Robert Habeck has described the government’s decision to limit the use of natural gas and burn more coal as a “bitter” one but said the country must do everything it can to store as much gas as possible ahead of winter.
“The gas storage tanks must be full in winter. That has top priority,” Habeck said in a statement, according to a translation.
The Netherlands on Monday said it would activate an “early warning” phase of an energy crisis plan and remove a production cap at coal-fired plants to preserve gas, according to Reuters.
Italy and Austria have also reported plans to consider burning more coal to offset a sharp drop in Russian gas supplies.
Winter energy rationing?
Henning Gloystein, director of energy, climate and resources at political risk consultancy Eurasia Group, said the short-term solution for Germany and many other European governments is to access any form of energy they can that’s not Russian — “and sadly that does include … coal.”
“Hard coal and lignite, which is the dirtiest form of coal, but Germany has a fair bit of that, and they will probably try and maximize that to avoid a winter gas shortage,” Gloystein told CNBC’s “Squawk Box Europe” on Tuesday.
The Netherlands has removed a production cap at coal-fired plants to preserve gas.
Bloomberg | Bloomberg | Getty Images
European policymakers should be able to avoid winter energy rationing, Gloystein said. However, he warned that “things could get really nasty” if Russian gas stops flowing when it’s…
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