Page 23 - Respond 2018 Magazine

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Global trade in petcoke is dominated by one country, the US (Data: resourcetrade.earth)

Between 2013 and 2014, the trade was cut in half. (Japan also Climate Home contacted some of the largest US petcoke
remains a stalwart consumer of US petcoke.) exporters. None returned emails except for Ahmed Jama,
CEO and president of Florida-based PermuTrade.
“India has become the dumping ground of petcoke from
countries like USA and China,” Sunita Narain, who heads the “I cannot speak for other companies,” he said. “But I do know
Centre for Science and Environment, told the Economic Times petcoke is being sold into the power generation industry and
in February. Narain is not only pushing for a domestic ban on steel industry [in India].”
petcoke’s use in power plants but an import ban as well.
PermuTrade is a relatively small fish. Jama said his company
Lorne Stockman, a senior research analyst at Oil Change transports between 0.6Mt and 1.2Mt of petcoke every year,
International, said much of the US petcoke was left over 75% of which goes to the cement industry in India. According
from the refinement of heavy oil from Canada’s tar sands. to Jacobs Consultancy, Koch Carbon trades more than 20Mt
Environmental restrictions in the US prevent it from being globally every year. Oxbow, another company owned by the
burned in most power stations, unless they are fitted with Koch brothers, also ranks among the largest global traders.
pollution scrubbing technology.
Jama said his company sells only to cement plants to ensure
“The US refiners have invested in this heavy oil refining the “environment is protected”. “We could make a lot more
strategy in order to take advantage of the cheap dirty feed money selling petcoke to many other industries, like the
stock from Canada,” he told Climate Home. “Then this waste power generation industry and steel industry but we are not
product is dumped into markets that will accept it. It’s a all about the money,” he said, adding that an India-wide ban
perfect example of the industry maximising its profits while on petcoke “might not be the greatest idea”.
maximising its pollution.”
“Petcoke should be banned or limited for captive power
It is uncertain how much petcoke is being burned around plants but not for cement plants. There should be clear
Delhi, according to an EPCA report, as refiners do not sulphur emission thresholds in place for companies to
collect data on how much is being sold into the capital comply with and be held accountable to. If petcoke is cut,
territory. It is also uncertain what proportion comes from the government will need to provide cheap coal or they
the US, as opposed to domestic refineries. During site won’t have power,” said Jama.
visits, however, EPCA inspectors found industries were
using imported product. In fact, environment authorities are not pursuing a ban on
use in cement. But they are trying to control power plant
The trade within India is controlled by some of the biggest, emissions before Delhi again disappears beneath the smog
most influential and least transparent corporations in the of industry.
country, including Adani Enterprises. Adani’s website says it
sources petcoke from the US.

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