Globally, approximately 7,000 coal mines, more than 2,400 coal-fired power plants and hundreds of coal rail networks, trucks and port terminals all make up the world's coal industry. When coal is phased out and green energy is phased out, these coal assets can either be abandoned or converted into something that is useful to communities.
Sandeep Pai and Jennifer Broadhurst research How India, South Africa and the US are reusing their coal assets. South Africa is moving away from burning coal to generate electricity and research shows that coal infrastructure could be converted into new agricultural and renewable energy hubs.
How important is coal to South Africa right now?
The South African coal value chain is vast and extensive. is about the country 108 coal mines and processing facilities. Coal is transported daily by in thousands Of trucks. there are 14 coal based power plants in the country, and an entire port terminal for coal (the Richards Bay Coal Terminal).
South Africa still generates 74% Its electricity is generated from coal. But the country is moving towards a green energy future and coal will be phased out gradually. aims at net zero (Zero emissions from humans by 2050, including emissions from burning fossil fuels). If this target is achieved, coal assets such as land, equipment, machinery and infrastructure as well as associated skills and labor may become trapped (not used or underutilized).
Why not close or shut down coal mines or plants?
The unplanned closure and decommissioning of coal assets will have a significant economic impact on workers and the communities and local areas that are heavily dependent on the coal value chain.
For example, the coal sector in South Africa today provides over 100,000 Direct jobs for workers and several thousand indirect jobs. Closing coal assets without a plan would mean the loss of these jobs.
Although this will not solve all the problems faced by coal workers and coal communities, the reuse of coal assets is considered a key element. just energy transition. Within the coal sector, just transition means protecting coal workers, dependent communities and local areas from being disadvantaged by the energy transition.
For example, repurposed industries provide continuity of economic activity. If a coal mine is closed, workers and communities lose jobs and local revenues. If the mine is repurposed for solar energy, agriculture or other activities, some workers may find employment in the new area.
Typically, site restoration is required before new industry can be established, meaning that new industries also help restore the environment.
What is the best way South Africa can divert coal assets?
Our research shows The most promising approach would be to convert coal power stations and mining areas into renewable energy and agricultural hubs.
A renewable energy hub is a place where old coal infrastructure is reused to generate clean energy, store electricity and support new industries. This creates jobs and makes the most of existing road, rail and power networks.
A coal site could also be repurposed to grow climate-smart crops, and serve as a training facility for farmers and professionals to learn agriculture-related skills. Grootvalley Climate Smart Gardening Center The Grootvalley coal power plant is an example of this. Eskom's long-term vision is to build a full-fledged agricultural hub at the power station.
These changes should occur as part of regional repurposing strategies (rethinking the entire coal industry rather than addressing just one mine or power station at a time). Mines, power plants, rail lines, trucks and ports need to be reused together to create a new industry. This is known as system-level coal value chain repurposing.
The possibilities for reusing coal assets in India and the United States share many similarities with South Africa. In all three countries, renewable energy and agricultural value chains are potential options, although India and the United States also use approaches that have not yet been tested in South Africa.
In India, coal mines are overburdened – topsoil, rock and other layers dug to obtain coal converted into very cheap sand For construction.
Abandoned rail lines in the United States become a hiking trailCreating local jobs for former coal workers and communities, often funded through mine closure laws.
Why is it taking so long in South Africa?
based on our researchWe found that coal mine and power plant revival is slow due to weaknesses in governance and coordination and lack of finance. There has been no discussion or action by the owners of the rail network, trucks and even ports.
South African policy frameworks for repurposing are not legally binding or required under any rules. Therefore, for coal mining companies, simply shutting down is a much cheaper option.
In power sector, power utility Eskom was given priority Repurposing coal-fired power stations as part of a just energy transition. But Eskom does not have the funds to do this. Currently, Eskom is largely dependent on external funding to take it forward, but more is needed.
Has significant international finance (about US$14.3 billion) has been mortgaged Through Just Energy Transition Partnership Signed between South Africa and International Partner Group (A network of developed countries including Denmark, the UK, Germany, the Netherlands and France that was established to provide funding, technical expertise and political support for South Africa's transition to green energy).
This funding is managed and coordinated Just Energy Project Management Unit Located within the South African Presidency. But getting approval for funding from international group countries has become complicated and the approval process is not transparent. Money for the projects has not been paid speedily, leading to delays.
South African Presidential Climate Commission Various government departments and coal businesses also need to talk about a joint repurposing policy. All the different owners involved, from mining companies to trucking businesses, will need to plan together, rather than acting on their own.
Repurposed investments require development finance from domestic and international sources to address the financial risks of investing. It must also ensure that affected workers and communities benefit economically and socially.
How can coal assets already create jobs and local economic development?
Coal mines in South Africa are owned by host communities high levels of unemploymentAnd access to the Internet is very limited. They also have abundant labor skills, infrastructure and natural resources. Nevertheless, the coal mines have not been reused on any meaningful scale. Most closed sites are simply rehabilitated until the land is deemed suitable for livestock grazing. Then rehabilitation usually stops.
However, a recent pilot project Mining company Glencore demonstrated that rehabilitated mine land could be used to grow winter wheat using treated mine-affected water. This highlights the untapped potential of the post-mining landscape.
Coal mine sites can also be used growing industrial crops Such as hemp, kenaf and bamboo support post-mining industrial growth, create value in sectors such as textiles, construction and bioenergy and also help rehabilitate polluted lands.
hemp value chain Another option is to grow hemp on former mine sites, and use power plants to process the plant into textiles and construction materials. Finished products can be transported using the former coal transportation network.
Truthful bus transition For coal communities it is a community that does not make the inequalities of the past worse.