CSR Mercuria 2019 - Flipbook - Page 56
Coal
The various impacts of climatological changes
command an acceleration of the existing transition to a “low carbon”-economy. In conducting its
coal trading activities, Mercuria is concentrating
its efforts to underwrite this acceleration.
We are adapting our trade flows as a reflection
of the transition. Within the European Union, alternative available sources of power generation,
such as natural gas and different types of renewable energy sources, have allowed a drastic
shift from coal as source for power generation.
We have all but ceased supplying coal to power
generators within the European Union and we
have cooperated with customers in adapting
their sourcing to alternative forms of energy; this
ties in with our efforts to grow our exposure to
natural gas and LNG. We have restricted coal
supply within the European Union to customers
within specialized industries that so far have been
unable to amend production processes to alternative sources of supply. We conduct a dialogue
with this customers in an effort to share our best
practices concerning transitioning into alternative
sources of energy.
Our remaining trade flows accordingly have been
reoriented and are now fully focused on areas
worldwide where there exists no actual framework to substitute coal with alternative sources of
power generation. We continue to assist our customers within these areas by supplying them with
coal as a necessary means to guarantee stable
electricity supply. Notwithstanding that current
framework, we are endorsing regulatory, political
and economic undertakings within these areas to
accelerate the path to a “low carbon”-economy.
We have drastically improved the average coal
quality within our supply portfolio, furthering our
focus minimize the climatological impact whilst
aiming to ensure stable security of electricity supply. The average calorific value (heat content) of
our coal handled has increased and we are adhering to the strictest possible safety and quality
standards in terms of shipping and handling. We
are equally striving to continue eliminating coal
types with high Sulphur and Ash components
from our supply portfolio.
As far as our mine activities are concerned in Indonesia, we are not searching to substitute the
lower output volumes towards the end of the life
cycle of this asset.
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As far as our mine activities are concerned in
South-Africa, we are conducting and handling the
output volumes in close cooperation with the local utility to guarantee electricity supplies to areas that are running at particular risk of electricity
supply interruptions.
Overall, we have no intention to grow our coal
trading activities and we will continue to step up
our exposure to alternative sources of energy. We
continue cooperating with our customers to advise them and share with them our best practices
on how to transition into a lower carbon-intense
energy framework.
Minerva and IMO 2020
The start of 2020 brought with it new MARPOL
regulations established by the International Maritime Organization (IMO) which required that all
vessels transition to using fuel with sulfur content
of no more than 0.5% by weight, as compared with
the previous standard of 3.5% by weight. The IMO
estimates this regulation
will result in a 77% reduction in sulfur oxide emissions from ships and the
prevention of 570,000 premature deaths worldwide
between 2020 and 2025. Minerva was a leader in
the transition, ensuring that the new low sulfur fuels were available for customers in all of its physical locations several months before the January
1st deadline.
Minerva Bunkering is an international marine fuel
logistics company that markets and physically
supplies fuel and lubricants to ships in port and at
sea. The company procures product in bulk from
diverse sources and resells it to over 600 customers across all major commercial shipping sectors
including container ships, dry bulk carriers, cruise
ships, oil tankers, and ferries.
Minerva Bunkering started in 2014 as a natural
extension of the oil products focus within Mercuria, and has steadily expanded its reach and capabilities, particularly through the landmark acquisition of Aegean Marine Petroleum Network Inc. in
April of 2019. As a result of the integration of Aegean, Minerva has become the industry’s leading
physical supplier with annual physical delivery capacity of 25m metric tonnes across 30 ports, and
coverage of 150 ports including its global trading
