Selling Coal In Austria: Is It Legal?

Austria has historically been reliant on coal as a source of energy. In 2016, the country consumed 3,886,745 tons of coal, ranking 52nd in the world for coal consumption. However, in recent years, Austria has shifted towards renewable energy sources, with hydro power accounting for 58% of total power generation in 2022. The country had planned to phase out coal usage by 2035, but due to reduced gas supplies from Russia, Austria has been forced to revive some coal-fired power stations. This has led to a complex situation where Austria aims to balance its energy needs with environmental concerns, ultimately striving for carbon neutrality by 2040.

Austria's coal consumption

Austria's consumption of coal has varied over the years. As of 2016, the latest year with complete data, Austria consumed 3,886,745 tons of coal annually. This placed Austria 52nd in the world for coal consumption, accounting for about 0.3% of the world's total consumption.

Looking at historical data, Austria's coal usage fluctuated between 2011 and 2015. In 2011, coal usage was at 9.09%, which declined by 2.69% in 2012 to 9.46%. There was a slight increase in 2013, with coal usage reaching 9.46%declined again in 2014 to 7.97%. The latest data point in 2015 showed a small increase from the previous year, with coal usage at 8.23%.

Austria has set ambitious targets for renewable energy sources and reducing coal usage. The Austrian energy plan made in 2020 includes goals such as carbon neutrality by 2040, phasing out all oil and coal heating systems by 2035, and phasing out coal usage in industry. In 2021, Austria passed the Renewable-Expansion-Act, stipulating a goal of 100% renewable electricity by 2030.

Despite these targets, Austria briefly returned to coal in 2022 due to reduced natural gas shipments from Russia. State-controlled Verbund AG, Austria's largest utility company, was ordered to prepare its Mellach coal-fired station for operation to address the energy shortage. However, this was intended as a temporary measure, and Austria remains committed to transitioning away from coal and towards renewable energy sources.

Coal-fired power stations

Austria has returned to the coal age, reviving the use of coal to generate power as Russia reduces natural gas supplies to Europe. State-controlled Verbund AG, Austria's largest utility and most valuable company, was instructed to prepare its Mellach coal-fired station for operation. The plant, located 200 kilometres south of Vienna, was closed two years ago when Austria became the second European country to eliminate coal from its electricity grid.

Austria joins other European nations, including France, Germany, and the U.K., in extending the use of coal-fired power following Russia's invasion of Ukraine. Russia's reduction in natural gas shipments has left Austria in a vulnerable position, with storage depots containing only 39% of the country's annual needs.

The Mellach station, which includes a combined-cycle gas-fired plant, provides heat and electricity to Graz, Austria's second-largest city. After its closure, Verbund transformed the coal station into a research centre for exploring methods to safely introduce hydrogen fuel into the power grid.

Prior to the closure of the Mellach station, Austria consumed 3,886,745 tons of coal annually as of 2016, ranking 52nd in the world for coal consumption. Notably, 97% of Austria's coal consumption was imported. Dürnrohr Power Station is another example of a coal-fired power station in Austria.

Austria's energy plan

Austria is committed to reaching carbon neutrality by 2040, with an impressive three-quarters of its electricity generation already coming from renewable sources. The country has set a target of achieving 100% renewable electricity supply by 2030, primarily through hydro, wind, and solar power.

The Austrian energy plan, formulated in 2020, includes the following key targets:

• Carbon neutrality by 2040.
• Phasing out all oil and coal heating systems by 2035.
• Restricting gas heating systems in new buildings from 2025.
• Developing renewable hydrogen.
• Phasing out coal usage in industry.
• Increasing electricity capacity and making it carbon-neutral by 2030.
• Installing 1 million solar systems on private houses by 2030.
• Adjusting the tax system to encourage green developments.

Austria has already made significant progress towards these goals. In 2020, the country became the second European nation to eliminate coal entirely from its electricity grid when it closed its last coal-fired power plant. However, due to reduced gas supplies from Russia, Austria has been forced to restart coal-fired power plants to ensure energy security.

Austria's energy future is heavily focused on renewable sources, with hydropower currently providing around 54% of its total installed power generation capacity. The country also has ambitious plans for solar and wind energy, with targets to add an additional 10.5 GW of solar PV and double wind power capacity by 2030.

To achieve its energy transition goals, Austria is also investing in building renovation, sustainable heating systems, and the electrification of transport, as well as public transport infrastructure. The country is also committed to a comprehensive tax reform based on ecological and social principles, aiming for true-cost pricing for CO2 emissions.

Coal usage in industry

Austria's decision to revert to coal highlights the ongoing debate around coal usage in industry. Coal has long been used as a fuel source for electricity generation, with coal-fired power plants burning coal to produce steam, which drives turbines to generate electricity. In the past, coal played a significant role in the industrial sector, but its usage has been declining in favour of natural gas and renewable energy sources.

However, the recent energy crisis in Europe has led countries like Austria, France, Germany, and the UK to extend the life of coal-fired power plants. This shift is intended to reduce dependence on Russian gas and ensure energy security. While it may provide a temporary solution, it also raises concerns about the environmental impact of coal, which is considered the dirtiest fossil fuel.

The industrial sector, including concrete, paper, and steel industries, also utilise coal and coal byproducts. The steel industry, in particular, relies on coal coke, a high-carbon and low-moisture form of coal, to smelt iron ore and produce steel. The high temperatures generated by burning coal coke impart strength and flexibility to steel, making it essential for construction and automotive applications.

Additionally, coal can be converted into gases and liquids, creating synthetic fuels or synfuels. These synthetic fuels have a range of applications, including electricity and hydrogen production. However, the environmental implications of coal usage remain a significant concern, and the long-term trend in Europe has been a shift away from coal towards less carbon-intensive energy sources.

Coal imports

Austria has been increasing its coal imports in recent years. In 2016, the country imported 3,775,836 tons of coal, which accounted for 97% of its coal consumption. This consumption placed Austria as the 52nd largest consumer of coal in the world, making up about 0.3% of the world's total consumption.

Austria's decision to return to coal has been influenced by Russia's reduction of natural gas shipments to the country. State-controlled Verbund AG, Austria's largest utility company, was instructed to prepare its coal-fired power station in Mellach for operation. This move marks a shift back to coal as a source of power generation, which had previously been eliminated from Austria's electricity grid.

The average value of Austria's coal imports from 1980 to 2020 was 4,040.05 thousand short tons, with a minimum of 3,285.21 thousand short tons in 2020 and a maximum of 5,010 thousand short tons in 2007. In 2019, the country imported 3,120 thousand metric tons of coal, according to data from the United Nations.

Austria's return to coal is not an isolated case, as other European nations, including France, Germany, and the United Kingdom, have also extended the use of coal-fired power following Russia's invasion of Ukraine and the subsequent reduction in natural gas supplies.

Frequently asked questions