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Is Australian Coal Finally Having Its “Oh Sh*t” Moment?

February 9th, 2016 by Guest Contributor

Originally published on RenewEconomy
by Sophie Vorrath
http://cleantechnica.com/2016/02/09/is-australian-coal-finally-having-its-oh-sht-moment/

Last week, a senior energy analyst at the Union of Concerned Scientists wondered whether the reality of the clean energy transition had finally dawned on the American coal mining industry.

http://blog.ucsusa.org/jeremy-richardson/king-coals-stages-of-grief-acceptance-reaches-the-coalfields
His question was prompted by events in the US; but a look at the headlines in Australia on Monday suggests a similar fossil fuel reality check could be happening here.

In Queensland, the state’s peak resources body issued an SOS on Monday, calling for taxpayer support – or government tax relief, or more subsidies – for the state’s coal mines, after a study revealed that one third of them were running at a loss.
The report, commissioned by the Queensland Resources Council (QRC), also found that more than half of the mines producing thermal coal for power stations were losing money.

“We would like government to think about what we need to do to protect the remaining 60,000 jobs in the Queensland resources sector,” said QRC CEO Michael Roche. “These are some of the worst conditions they have faced in decades. Some companies are teetering on the brink.”

So, is this the first sign that the Australian fossil fuel industry – which has railed against subsidies for renewable energy, but now wants more subsidies of its own – is finally having its “oh sh*t” moment? The ACF certainly thinks so.

“This report, commissioned by the industry itself, shows the coal industry is finally realising the age of coal is over,” said the Australian Conservation Foundation CEO Kelly O’Shanassy.

“The coal industry employs only 0.4 per cent of the Australian workforce, but gets hundreds of millions of dollars every year in subsidies. Despite this special treatment, it appears the industry is not financially viable.”

O’Shanassy also suggests that “instead of continuing to shovel public money down the mine shaft” governments invest in industries with ongoing job opportunities, like renewable energy and tourism.

“This is no time to be contemplating opening new coal mines,” she says.

That message, coming from groups like the ACF, might easily be dismissed by industry, but when the same message comes from Indian coal giant Adani – as it did last week – it’s time to pay attention.
The report, commissioned by the Queensland Resources Council (QRC), also found that more than half of the mines producing thermal coal for power stations were losing money.

“We would like government to think about what we need to do to protect the remaining 60,000 jobs in the Queensland resources sector,” said QRC CEO Michael Roche. “These are some of the worst conditions they have faced in decades. Some companies are teetering on the brink.”

So, is this the first sign that the Australian fossil fuel industry – which has railed against subsidies for renewable energy, but now wants more subsidies of its own – is finally having its “oh sh*t” moment? The ACF certainly thinks so.

“This report, commissioned by the industry itself, shows the coal industry is finally realising the age of coal is over,” said the Australian Conservation Foundation CEO Kelly O’Shanassy.

“The coal industry employs only 0.4 per cent of the Australian workforce, but gets hundreds of millions of dollars every year in subsidies. Despite this special treatment, it appears the industry is not financially viable.”

O’Shanassy also suggests that “instead of continuing to shovel public money down the mine shaft” governments invest in industries with ongoing job opportunities, like renewable energy and tourism.

“This is no time to be contemplating opening new coal mines,” she says.

That message, coming from groups like the ACF, might easily be dismissed by industry, but when the same message comes from Indian coal giant Adani – as it did last week – it’s time to pay attention.