Keeping U.K. Coal Open Just Got Harder With Russian Ban

(Bloomberg) -- Talks to safeguard U.K. energy security by keeping some coal-fired power plants open through next winter have just got a lot harder after Prime Minister Boris Johnson decided to ban Russian supplies.

Britain is exploring options to bolster energy security, including keeping open Drax Group Plc coal units and Electricite de France SA’s West Burton A coal-fired power station beyond September. But the nation relies on Russia for more than 40% of its coal imports. Burning supplies from elsewhere may require companies to apply for new environmental permits, according to people familiar with the matter.

Johnson unveiled a new round of Russia sanctions on Wednesday following allegations this week of atrocities by Moscow’s forces in Ukraine. The new measures include a plan to end all imports of Russian coal and oil by the end of the year. While the U.K. has been reducing its coal burn for years as it transitions to cleaner energies, natural gas shortages meant Britain had to rely more on the dirtiest fossil fuel to keep the lights on.

The U.K. plans to phase out coal in 2024, and several plants have already closed. EDF currently has very low coal stocks and the company would need to apply for a permit with the U.K. Environment Agency to burn supplies from elsewhere due to emissions limits, according to a person familiar with the matter, who asked not to be identified because the information is private.

“The plan is to start decommissioning the final two units at the start of October 2022,” EDF said in a response to Bloomberg questions. “Many processes have already been put in place to achieve that, including reducing the site’s staffing numbers and running down the coal stock.”

Drax Group Plc, which has two coal-fired units, has been asked to consider running them beyond the planned September closing date, but no final decision has been made. The company sources its coal from the U.S., it said in a statement to Bloomberg.

Coal imports into the U.K. rose 1.8% last year to 4.6 million tons, with 43% coming from Russia, 24% from the U.S. and 11% from Australia, according to government data. Permits to burn the fuel set emission limits for nitrogen oxides and sulfur, and if thresholds can’t be adhered to, a new license may be required, said the people. 

“Phasing out Russian coal will not affect our energy security,” the Department for Business, Energy and Industrial Strategy said in a statement. “Coal supplied less than 2% of U.K. electricity generation in 2020 and will be completely phased out of our power system by October 2024.”

(Updates with Drax statement from sixth paragraph)

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