JSW, the coal company sponsoring the UN climate negotiations in Poland, has a plan to revive the coal industry: renameย coal.
Daniel Ozon, CEO of JSW, believes that coking coal has been tainted by association with thermal coal, and that investors are backing away as aย result.
But he thinks a โfancy new nameโ for coking coal couldย help.
Coking coal is used to make steel, while thermal coal is used for power generation. JSW is planning to expand its output of coking coal, while reducing the share of thermal coal in its portfolio.ย ย
But financing is challenging, Ozon admits, thanks to coalโs growing reputation as a dirty and decliningย industry.
โWe have to rely on external funding on a daily basis. We deal with our shareholders, deal with the banks, with the insurance companies,โ he explains in an interview. โA lot of those institutions put coal on the blacklist, and basically we have to explain to them whatโs the difference between the steam coal and the cokingย coal.โ
Ozon says he has met with โreally high level peopleโ at the European Union to discuss the notion of aย rebrand.
While he wouldnโt mention any names, the EUโs transparency register shows that JSW met with Dominique Ristori, the EUโs director-general for energy, to discuss energy policy in June this year. An EU spokesperson gave no comment on theย meeting.
Image: Daniel Ozon speaks at COP24. Credit: Sophieย Yeo
Ozon says that he has โstarted a dialogueโ with other coal companies, including Anglo American, BHP Billiton, Rio Tinto, and that they were open to theย idea.
Nonetheless, this rebrand is likely to be a challenge. The word โcoalโ has so far stood the test of time โ around 800 years of it. The word comes from the Old English col, meaning โpiece of wood or other combustible substance, either burning or having beenย burnedโ.
But Ozon isย optimistic.
โIf we come up with a good name, there is a lot of marketing just to let people know this is the new name for the product, but hopefully we can succeed,โ he says. The rebrand will hopefully take place next year, he adds, โbecause of the whole pressure. The sooner we do it, the better, the more advantages weย have.โ
JSW is struggling to come up with a new name for this product,ย however.
The current suggestions are โnot fancy enoughโ to mention, says Ozon, but he hopes that the companyโs employees or clients will rise to theย challenge.
Coalย Future
Introduced by Polandโs energy minister, Ozon spoke enthusiastically about the future of coal at Polandโs pavilion at the annual UN climate talks inย Katowice.
JSW is the largest producer of coking coal in the EU. The companyโs sponsorship of the UN climate talks has ignited outrage among activists, who see it as illustrative of the cosy relationship between Poland and the coalย industry.
The Intergovernmental Panel on Climate Change warned this year that coal use must reduce steeply if countries are to achieve the 1.5C target enshrined in the Parisย Agreement.
In 2014, coking coal made up around 13 percent of global coal production, with the remaining 77 percent consisting of thermal coal. Burning a tonne of coking coal, however, is no cleaner than burning a tonne of thermalย coal.
While it will be difficult to produce steel without coking coal, it is notย impossible.
Around a quarter of steel is already being produced using electric arc furnaces, which is cleaner than the traditional method. Earlier this year, the Swedish power company Vattenfall began constructing the worldโs first pilot plant for creating fossil-free steel.ย ย
Main image credit: Chloe Farand/DeSmog UK
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