DEBRIV

German lignite will continue to make an important contribution to maintaining a secure, economical and sustainable energy supply, the chair of the board of German Lignite Association (DEBRIV), Helmar Rendez, explained at this year’s lignite convention in Cologne/Germany. The German lignite industry calls for planning security and political reliability up to the end date for coal use proposed by the commission for growth, structural change and employment. By the end of 2038 the viability of the industry and the mining districts must be preserved, says Rendez. Compared with the current district planning, the commission’s recommendations represent a significant reduction, resulting in major structural adjustments in the regions and serious disruptions to the companies’ activities and plans.

Rendez appealed to all those responsible, particularly in economic, energy and environmental policy, not to underestimate the risks of undesirable developments. The fourth largest national economy equally needs safety, cost effectiveness and environmental protection in its energy supply. A reliable power supply without interruptions 365 days a year needs reliable generation capacity such as lignite has been offering for decades. Despite high and increasing supply, the guaranteed power supply from photovoltaics and wind is still between zero and 1 % of the demand. Moreover, it is unlikely that storage capacities for a 14-day cold period of little sunlight and no wind can be developed and made available within the next ten years. By 2023, however, it can be expected that domestic power generation capacities will no longer be sufficient to cover high network loads.

“As long as we use lignite, we will have a dampening effect on electricity prices,” explains Rendez on the economic importance of generating power from lignite. Particularly in an increasingly difficult economic environment, the appreciation of lignite’s contribution will rise again, Rendez adds.

With regard to climate policy, German lignite has already “delivered” according to the chair of the DEBRIV board. Since 1990, CO₂ emissions from lignite have decreased by approximately 50 %. Even in the future, coal-based power generation will remain “100 % compatible with European climate protection goals”.

The next step is to implement the recommendations of the commission for growth, structural change and employment on a secure political foundation with regard to energy and the environment. According to the chair of the DEBRIV board of executives, the commission’s proposal to forgo new open-pit mines for energy use does not extend to existing plans as part of the states’ landmark decisions or lignite plans, and ongoing or planned relocations must also be carried out. Under no circumstances may the commission’s recommendations be undermined by new regulatory interventions regarding energy and the environment. Premature decommissioning must be compensated for appropriately by negotiation; this also applies to open-pit mines. To safeguard a secure and cost-effective energy supply, DEBRIV considers realistic revision clauses and transparent reviews of decisions indispensable. To develop sustainable prospects for the regions, active mining as an industrial docking site is vital.

Domestic lignite production was 2.9 % lower in 2018 than in 2017. A total of 166.3 Mt of raw lignite was mined. Production in the Rhineland decreased by 5.4 % to 86.3 Mt. Production in Lusatia fell by 0.8 % to 60.7 Mt. By contrast, the central German mining area recorded an increase in production of 2.2 % to 19.2 Mt. The changes are largely in line with developments in the supplies to power stations. Lignite power generation amounted to 145.5 bn kWh, 2.9 % less than in 2017 and the sixth consecutive year of decline. The number of employees in the German lignite industry decreased slightly by 0.2 % to 20,851.

In the first quarter of 2019, lignite production and supply to power stations was nearly 18 % lower than in the same period of the previous year. Therefore, approximately 7 Mt less CO₂ was emitted. This development is mainly due to three factors: The transfer of additional power station units to the emergency pool of reserve power, a significantly increased supply of wind energy and the effects of the reduced production caused by stopping the clearing of Hambach Forest. (DEBRIV/Si.)

The recommendation from the Commission for Growth, Structural Change and Employment to shut down half of the lignite power station capacity by 2030 and to completely end electricity generation with domestic lignite by 2038 will prematurely take away an important source of energy from Germany as an industrial centre. It will also penetrate deep into the social fabric and value creation of the lignite mining areas. The recommendation would result in Germany ending electricity generation from coal around ten years earlier than planned in the regions. The German Lignite Industry Association (DEBRIV) in Berlin/Germany is appealing to the federal government to review, with the participation of all those affected, the present recommendations from the perspective of reliably supplying Germany with energy.

According to DEBRIV, the commission is intervening excessively in regional plans. Many technically well-founded, economically reasonable compromises that would benefit the regions as put forward by industry, unions and federal states have not been adopted. Even without these rulings, electricity generation from lignite would still end in Germany by 2050 at the latest according to company plans. “We should seriously reconsider prematurely sacrificing a competitive branch of industry for the political objective of climate protection, especially given the fact that this branch of industry is responsible for less than 0.5 % of global CO₂ emissions and its sacrifice would therefore actually contribute very little towards climate protection,” explained Managing Director of DEBRIV Thorsten Diercks in Berlin after the commission’s recommendations were published.

More detailed evaluation of the rulings will only be possible after deeper analysis. DEBRIV would like to thank representatives of economy, the unions and the regions for bringing their expertise on energy economy to the commission’s work with technical feedback specific to the regions. (DEBRIV/Si.)

In 2018, lignite production in the Rhineland, Lusatia and central Germany decreased by a total of 3 % to around 166 Mt. According to preliminary calculations by the German Lignite Association (DEBRIV), Berlin/Germany, this decrease in production and use has reduced CO₂ by around 5 Mt. Lignite therefore made a quantitatively significant contribution to reducing national CO₂ emissions in 2018.

This drop in CO₂ emissions from lignite was in large part due to the transfer of further power station units to the emergency pool of reserve power. The Buschhaus and Frimmersdorf power stations, with a total of 900 MW, transferred to the emergency pool of reserve power as early as 2016 and 2017, while two units of the Niederaußem power station in the Rhineland – just under 600 MW – and one unit of the Jänschwalde power station in Lusatia (465 MW) were taken off grid on 1st October 2018. Two further plants will follow in 2019. With the transfer of a total of 2,730 MW net output to the emergency pool of reserve power, the use of lignite to generate electricity in Germany will decrease by around 13 % by 2020. CO₂ emissions from lignite-based electricity generation will therefore be reduced by around 19 Mt by 2020.

“The reduction in CO₂ emissions called for by climate policy does, however, come with risks and disadvantages, which were particularly brought to light last year,” explained Managing Director of DEBRIV Thorsten Diercks. During last summer’s long heat wave and drought, lignite power stations made a solid and reliable contribution to safeguarding the power supply. The electricity that could be generated from wind energy was severely limited during summer due to the weather and the extreme heat meant that the output of PV systems was also lower. Power stations that take their cooling water from surface water had to significantly downscale their capacities and low water levels in the rivers impeded the fuel supply to various plants. Since lignite power stations are supplied with fuel locally and are cooled with drainage water from mining operations, their operation was at no point jeopardised or restricted. In 2018, it was not only in Germany that the operation of these lignite power stations strengthened the reliability of supply. In several neighbouring countries too, planned or unplanned downtimes in electricity generation could be covered by imports of German electricity generated from lignite.

According to DEBRIV, the particular developments of last year clearly show that the generation of electricity from lignite is of huge relevance when it comes to securing German and European electricity supply. The premature or overly hasty national withdrawal from the generation of electricity from lignite would jeopardise the reliability of supply in Germany and Europe, while the necessary expansion of the grid has yet to take place and it is still not possible to store sufficient power reserves.

DEBRIV anticipates further reductions in the generation of electricity from domestic lignite in the coming years. This development follows the stipulations of the European Emissions Trading Scheme, whereby the number of chargeable emissions allowances is declining year on year. According to company plans, the generation of electricity from lignite in Germany will end in the 2040s. A premature withdrawal would inevitably result in severe structural interruptions with massive losses in terms of employment and value creation in the mining regions, warns DEBRIV. (DEBRIV/Si.)

Helmar Rendez, Chairman of the Board at LEAG, is the new Chairman of the German Lignite Association (DEBRIV), Berlin/Germany. He was elected to his new office at the general meeting at this year‘s lignite convention. The new Deputy Chairman was declared to be Lars Kulik, Member of the Board of Management at RWE Power AG.

The extensive withdrawal from electricity generation using lignite in Germany is possible without the need for any compulsory redundancies. This was the assertion made by the Institute for Applied Ecology after carrying out an analysis on behalf of the Federal Environment Agency, which was subsequently quoted in the media. The German Lignite Industry Association (DEBRIV), Bergheim/Germany, has made a clear statement on this:

“This analysis is arbitrarily based on incorrect assumptions, e. g., regarding HR development in energy companies. Above all, however, by only considering employees in the lignite industry, it fails to take into account the importance of the industrial-political and national economic dimension of a rapid phase-out of coal,” reports Helmar Rendez, Chairman of the DEBRIV. “A subject of huge societal relevance has been deliberately played down here. By distancing itself from reality, the study by the Institute for Applied Ecology cannot be used as a sound basis for discussing the future of mining districts.”

The significance of the lignite industry has been systematically underestimated by the authors of the study; in the Rhineland as the guarantee of competitive industrial electricity prices, in the Central German mining district for its links with the chemical industry and in Lusatia as the central industrial anchor for the entire region’s economy. From the point of view of the DEBRIV Chairman, the effects of a premature phase-out of coal on other companies and areas of the economy have not, therefore, been considered to the extent necessary in the analysis by the Institute for Applied Ecology.

The downscaling of coal capacities as called for in the analysis by the Institute for Applied Ecology would in fact result in a considerable increase in the price of electricity. The effects this would have on energy- and labour-intensive industries would be serious. Tens of thousands of people are employed by suppliers and partner companies, with hundreds of thousands in the nationwide energy-intensive industry. Take North Rhine-Westphalia, e. g.: A recent study by the chambers of industry and commerce in Aachen, Cologne and the Central Rhine Region found that 93,000 people are employed in energy-intensive production companies throughout the entire economic area of the largest German state. And in North Rhine-Westphalia, up to two further jobs can depend on each of these positions.

Every year, companies in the German lignite industry award contracts amounting to several billions of euros to other companies for the maintenance and modernisation of their mining operations and power stations and the associated high environmental standards. Without these contracts, many jobs at partner companies and suppliers would be under serious threat.

Another inaccurate assumption by the Institute for Applied Ecology is that there will be a drop in recruitment in the coming year. “That is simply not business practice,” clarifies Rendez. “Continuous training and the transfer of knowledge to young employees is essential for every commercial enterprise. The same obviously applies to the lignite industry. A drop in recruitment in the region would also mean the loss of hundreds of traineeships for qualified professions. That would severely impede the positive structural development in the regions and force young people to move away.” (DEBRIV/Si.)

“Without the solid contribution made by lignite during this year’s particularly long heat wave and drought, the electricity supply in Germany would have been under serious threat”, explains Helmar Rendez, Chairman of the Board of the German Lignite Industry Association (DEBRIV) in Bergheim, in his provisional appraisal of the energy supply during the summer weather conditions. On account of the weather, the generation of electricity from wind energy was severely restricted, photovoltaic systems were able to provide less power and power stations, which take their cooling water from surface water, had to significantly downscale their capacities.

When it comes to the supply of fuel and cooling water, German lignite power stations, on the other hand, are not affected by long-lasting heat waves. They are supplied according to requirements, usually via their own rail or transport systems, from the nearby mining operations in the Rhine, Central German and Lusatia mining districts. Following electricity generation, the process steam is usually condensed by cooling towers, which use the mine water extracted by the mining operations. “With this in mind, it’s no wonder that most lignite power stations are currently feeding their full power into the grid in order to safely and reliably supply the economy and the population with electricity”, says Rendez.

According to DEBRIV, it is essential that a broad mix of different energy sources and technologies are used to generate electricity during long periods of low wind and heat waves. Extreme weather can and will occur in future, including severe cold and low wind. “A hasty phase-out of coal as a means of generating electricity would put the electricity supply at serious risk”, explains the Chairman of the Board of DEBRIV. (DEBRIV/Si.)

“Domestic lignite will still be essential for securing Germany’s energy supply for decades yet,” emphasized Helmar Rendez, the new Executive Board Member of the German Federal Association for Lignite Production (DEBRIV) at this year’s Braunkohlentag conference in Halle/Saale. Rendez indicated that the early shut-down of more lignite power stations would have a serious impact on service and supply companies and whole economic regions, since: “A change in fuel demands of power stations changes the face of strip mining operations and has effects on the planning and approval conditions in mining districts, with far-reaching consequences for communities and regions.” It is therefore beyond question that the politically motivated structural changes in the mining districts will have a better chance of success if planned in cooperation with the lignite companies, rather than without the involvement of the people and companies who have lived here for many decades and who work in the lignite industry.

Rendez also emphasized that the federal government must focus more intensely on the energy economy triad of reliable supply, economic viability, and environmental protection in their decision-making on energy policy. He also called for their assurance that structural interruptions in the regions will be avoided.

So far, according to the DEBRIV, it is utterly unclear how the political energy transition targets of reducing national greenhouse gas emissions by 55 % before 2030 compared with 1990, and for renewable energy sources to make up 65 % of the gross electricity consumption can actually be reconciled with the requirements of a reliable and economically viable electricity supply. In their planned impact assessment, the federal government commission for “growth, structural change and employment” must also propose solutions to deal with the discussed measures. Rendez: “We know that lignite reliably supplies electricity and heat, while the renewable energy sources are not yet in a position to dependably supply consumers with continuous electricity or to secure the reliability and stability of the mains network, and will not be for the foreseeable future.”

“The four German states of North Rhine-Westphalia, Brandenburg, Saxony, and Saxony-Anhalt, in which lignite is currently extracted, demonstrate how to design a reliable energy policy,” emphasizes Rendez. “In the coming weeks, voices of reason are needed more than ever,” he explained, with a view to the government commission for growth, structural change and employment, and the realignment of the national energy and climate policy. (DEBRIV/Si.)

Last year, domestic lignite once again supplied just under a quarter of the electricity in Germany and therefore made a significant contribution to supply reliability. Despite exhausting all energy saving options, numerous studies show that the electricity demand will increase noticeably over the next three decades, from 500 TWh at present to up to 800 TWh. The future of energy is electric.

“In 2030, just over half of electricity consumption in Germany will have to be covered by the variable and reliable capacity of conventional power stations and, during periods of little sunlight and no wind, the proportion will be even greater,” explained the Chairman of the Executive Board of the German Lignite Association (DEBRIV), Matthias Hartung, at this year’s lignite convention in Cologne/Germany (Figure 1). Lignite is an indispensable partner when it comes to meeting this demand, because it is a readily available domestic resource and does not have to be imported from far-flung or unstable regions. It provides domestic added value, efficient regional structures and employment.

Germany can use lignite to achieve its ambitious climate targets and to guarantee a reliable power supply. “We will participate intensively in the forthcoming debates on the implementation of the climate protection plan and make the case that the developments desired by the mining states will be taken into account in the lignite regions by means of a balanced weighting of the diverse aspects of domestic energy production. We are fulfilling our significant CO₂ reduction contributions as part of the European Emissions Trading Scheme,” explained Hartung. The transfer of older power station units to the emergency pool of reserve power is a first step towards ensuring a reduction in CO₂ emissions from lignite power stations of around 15 %. Overall lignite use is developing in line with the national and European CO₂ reduction targets.

Hartung explained that CO₂ emissions from lignite in the Rhineland will fall by 40 to 50 % by 2030, partly due to the discontinuation of the Inden open-pit mine. Other contributions are made by increasing efficiency and changing the capacity utilisation of existing lignite power stations, the plans for open-pit mining in Lusatia and in the Central German lignite mining district, which have also provided considerable reductions in CO₂. The Chairman of the DEBRIV Executive Board stresses that he is unaware of any other sector of the national economy declaring CO₂ reduction targets of this scale. Instead of continually setting new national climate goals, DEBRIV advocates meaningful use and further development of the functioning European Emissions Trading Scheme (ETS). He adds that the ETS is an effective, cost-efficient instrument for climate protection with equitable burden sharing. National measures and goals are allegedly largely ineffective by comparison and have damaged the German economy. (DEBRIV/Si.)

On 1st April 2017, Thorsten Diercks, Managing Director of the German Raw Materials and Mining Association (Vereinigung Rohstoffe und Bergbau e. V.,VRB), Berlin/Germany, also became successor to George Milojcic as Managing Director of DEBRIV.

“We want to work together with people from the world of politics, science and trade unions to ensure that the general conditions allow domestic lignite to continue to play its part in the supply reliability and affordability of electricity within the scope of the planned conversion of the German power supply,” explains Chairman of the Board of the German Lignite Industry Association (DEBRIV), Matthias Hartung, at this year’s lignite convention in Potsdam/Germany. According to Hartung, lignite has a solid social and political foundation in the mining states of North Rhine-Westphalia, Saxony, Saxony-Anhalt and Brandenburg. Lignite is valued as a source of employment and recognised as an important economic factor. The significance of lignite in terms of energy and structural policymaking in Germany and in the affected states needs to be taken into account during the decision-making processes surrounding energy policy. Here, coal can and must make a contribution to national and European climate protection targets. With this in mind, Hartung rejected one-sided demands for the rapid phase-out of coal.

From the point of view of the German lignite industry, the transformation of the German power network is a long-term process that will take several decades. As a result of the nuclear energy phase-out and despite the development of renewable energies, by 2025 around 55 to 60 % and by 2035 another 40 to 45 % of electricity consumption will have to be provided by other energy sources. Lignite- and coal-based power station capacities, as well as those using natural gas are just as indispensable for closing this gap in the power supply as they are in compensating for production fluctuations in wind and photovoltaic plants caused by the weather and the time of day. Supply reliability and network stability will therefore remain in the hands of conventional power station complexes for a long time to come. It is important to note that lignite’s contribution will drop by some 15 % to around 140 TWh per year by 2023 within the context of the agreed emergency pool of reserved power. This drop will be beneficial in terms of Germany’s carbon footprint. As of 1990, the German lignite industry reduced its CO₂ emissions by a total of 50 %, making one of the most significant individual contributions. In order to make the energy transition a success, renewable energies and conventional power stations must come together on a long-term basis, whereby the market shares gradually move towards renewable energies. To make this sustainable in the long term, there must be a market system that offers the various energy sources economical prospects for the future. Today’s low wholesale prices show that the current system is being stretched to its limits.

Participants at this year’s lignite convention called for a peaceful debate on energy and the environment. In mid-May, acts of violence in the Lausitz mining region revealed a new level of criminal energy under the guise of climate protection. Individual open-pit mines and power stations also saw an increase in attacks on employees as well as material damage caused by those opposed to lignite. Participants at the lignite convention believed that there can be no political or legal justification for self-proclaimed climate protection activists staging sit-ins with the objective of actively interfering with the German power supply system. (DEBRIV/Si.)