Climate activists describe Whitehaven as Australia’s “worst” coal company: it has plans for in the coming year, many of which have already been given their approvals.
But Whitehaven Coal is in need of funds: it was forced to sell a 30% stake in its Blackwater coking mine to Nippon Steel Corporation (NSC) and JFE Steel for $1.6 billion.
Blackwater will still be majority owned and managed by Whitehaven.
Since February, Move Beyond Coal (MBC) has been working to demonstrate the inherent risks — financial and reputational — for any company looking to do business with Whitehaven Coal.
MBC and other climate campaigners have pressured the National Australia Bank from investing in Whitehaven Coal.
said the Japanese government’s “Green Transformation Basic Policy”, adopted in February last year, is insufficient as it emphasises economic growth rather than setting out an ambitious decarbonisation plan.
For instance, it has only promised to reduce its greenhouse gas emissions by 46% from 2013 levels by 2030. Still, this purchase contradicts that aim.
NSC shareholders showed their , at the June annual general meeting, for three climate-related shareholder proposals. the world’s fourth largest steelmaker to improve its decarbonisation strategy.
MBC will be taking its message that the Blackwater Mine is a “stranded asset” to other potential joint venture partners for Whitehaven’s other mines.
The Australasian Centre for Corporate Responsibility (ACCR) carried out a last December, of 500 respondents from 34 countries, which showed 80% of investors and companies will reallocate capital towards green steel processes in the next six years, to prevent the lock-in of carbon intensive steelmaking methods.
Most steel production currently relies on coal, which is primarily used as a reducing agent to extract iron from iron ore, and to provide the carbon content needed to make the steel.
The ACCR said around 90% of emissions from steel production are due to the use of metallurgical coal in conventional blast furnaces, to produce iron, the primary component of steel.
Therefore, eliminating coal-dependent processes from making iron is critical for any steel decarbonisation plan.
Hydrogen can be used as an alternative in a shaft furnace to reduce the iron oxides. Only water is produced as the by-product. Known as hydrogen direct reduction, this is the most prominent among green steel technologies which refer to steel being manufactured without using fossil fuels.
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