To avoid closure, the world's largest coal export port announced a 100% switch to green electricity
The Guardian reported that the Port of Newcastle, Australia, the world's largest coal export port, announced today (7th) that it will be powered by 100% renewable energy. Meanwhile, coal-fired power generation in Australia's National Electricity Market (NEM) fell to its lowest level in the last quarter of 2021. Newcastle plans to reduce coal's share of revenue to 50% by 2030. While coal exports still average 165 million tons per year, the port has already established a decarbonization plan for 2040 and aims to increase revenue from non-coal businesses, reducing coal's share of total revenue to 50% by 2030. The measures announced today are part of these transformation plans. The port has signed a large-scale retail power purchase agreement with Iberdrola, the operator of the Bodangora wind farm in New South Wales. Newcastle CEO Craig Carmody stated that the title of world's largest coal export port is "not as appealing as it used to be" and that changes are necessary to stem losses and avoid closure. "I'd rather do it now, while we still control our own destiny and while we still have revenue, rather than wait until revenue collapses and no one wants to lend us money," Carmody said. "Our port makes 84 cents a ton shipping coal, but we make $6 to $8 a ton shipping all sorts of other products. It's pretty clear where to spend the money." To make the transition, the Port of Newcastle has replaced 97% of its vehicles with electric vehicles.