Adani slams ‘toxic’ $ 4 billion plan to use Australian coal to make plastic in India | Adani Group
The owners of the controversial Carmichael mine in Queensland want to build a $ 4 billion plant in India that would use Australian coal to make plastic.
Adani Enterprises, owner of the Carmichael coal mine, has said in submissions to Indian authorities that the plant will use 3.1 million tonnes of coal per year to make PVC.
Critics said the “toxic” project was an attempt to find a second life for thermal coal at a time when the world was moving away from fossil fuels.
The company is seeking environmental permits to build the massive “PVC coal” plant that will occupy nearly 3 km² in Mundra, Gujarat.
Adani, which renamed itself Bravus Mining and Resources in Australia, has started construction on its Carmichael thermal coal mine in the Galilee Basin in Queensland. The Divide Mine has been one of the most controversial resource projects in Australian history.
In the submission, Adani Enterprises claims the “coal-PVC project” will cost US $ 4 billion (AU $ 5.2 billion) and use 3.1 million tonnes of imported coal “mainly from Australia, Russia and others. country”.
The plant would use a very complex process to produce two million tonnes of polyvinyl chloride (PVC) per year.
Supporters of the Adani Coal Mine in Queensland argued that the exported coal would be used to generate electricity in power plants and help lift people out of energy poverty in developing countries like India and Bangladesh.
Until now, it has never been suggested that the coal exported from the Galilee Basin would be used for anything other than power generation.
Guardian asked Bravus about the proposal and whether the coal for the project would come from the Carmichael mine.
In a statement, Bravus said, “India will be a core customer for the Carmichael project and is the world’s fourth largest user of electricity as well as the source of the fastest growing global demand for energy.
“We have already secured the market for the 10 million tonnes per year of coal produced at the Carmichael mine.
“The coal will be sold at an index price and we will not engage in transfer pricing practices, which means all of our taxes and royalties will be paid here in Australia.”
Pablo Brait, a Market Forces activist who pushes investors to take money out of the Carmichael Project, said: “The argument that Carmichael was going to help the poor was never valid in the first place.
“Renewable energy is cheaper and if you want to ensure an affordable price for electricity, it is better to use renewable energy rather than imported coal.
“It is Adani who is creating new uses for thermal coal instead of moving out of thermal coal. It is important for the investors of the Adani group to know this.
“This is a company that does not reduce its use of thermal coal, but tries to find new ways to use a resource and prevent Carmichael from becoming a stranded asset.”
In its bid, Adani’s companies said the coal will go through several processing steps, creating calcium carbide and then acetylene, which is then processed to ultimately produce PVC.
Adani said India’s demand for PVC exceeds supply and is dependent on imports.
Simon Nicholas, energy finance analyst at the Pro-Renewable Institute for Energy Economics and Financial Analysis, said some proposed projects in China and Pakistan seek to find alternative uses for the coal, especially coal-diesel and coal-fertilizer.
But he said these used cheaper domestic charcoal, not imported charcoal, and were subsidized by the government.
“It is very expensive to use domestic charcoal. It sounds like a proposed project to support their Carmichael mine.
SumOfUs environmental campaign group launched petition to lobby Adani funders to withdraw from the group on the charcoal-plastic project.
The group claimed the process of turning coal into plastic was emissions-intensive and called the plans toxic.