IV International coal conferece

Ukraine is not the first nation on the continent to undergo gradual phasing out of heat generation and would be implementing, in this connection, social transformation of the mono-cities, dependent on the work of mines or thermal power plants. Both the state and the society as a whole now face a serious task: how to remodel these mono-cities taking into account the entirety of socio-economic and environmental factors.

We are now actively discussing the fair transformation of coal regions, following the example of the European Just Transition program with the European Union, the World Bank and other partners.

A comprehensive policy of fair transformation of coal regions is being developed on the state level. Our task is to introduce the necessary incentives to make such regions the attractive places to investment into. To develop a detailed plan for the creation of jobs and to provide the new opportunities for small and medium business development. That is why one of the first steps on the way of “green transition” shall be to determine the directions of development for each mono-city or region.

The Cabinet of Ministers has already established a Coordination Centre for the Transformation of Coal Regions. The Secretariat of the Energy Partnership has started its work, and a dialogue is underway to establish a Multi-Donor Fund for the Transformation of Coal Regions. We plan to start the transformation of coal regions with the support of European partners already this year.

The success of our country coal regions transformation directly depends on the involvement into the common goal and the indifference of each participant to the process. Acting together, we must develop a universal model for remodelling and restoration of the coal mining regions, which would create new opportunities both for their residents and investors.

I wish all the conference participants understanding, fruitful work and effective solutions that would help our country to successfully implement this important transition.

In the EU, high carbon prices have pushed the cost of coal-fired power generation above the costs of competing energy sources, hitting coal-dependent member states especially hard. These realities are reflected in EU coal supply which fell by 22% in 2020, a year otherwise dominated by the ongoing COVID-19 pandemic and resulting economic crisis.

Managing transition has taken on a new sense of urgency, with well-planned phase-outs in some member states as others hurry to close mines and power plants without replacement. A common theme is the growing reliance on imported electricity, but without clarity on which countries will be in a position to export electricity in the future.

The evolving situation in the EU presents Ukraine with an opportunity to become a major power exporter. In the short-term, by sweating existing assets which can generate at a low cost without the heavy burden of EU emission allowance costs. In the medium to long term, Ukraine has enormous potential to develop renewable power generation and so could become that “missing exporter” of electricity to the EU, especially if large-scale electricity storage is developed alongside. In this respect, the 1 MW pilot project inaugurated this month by DTEK at the Zaporizhzhia TPP is a push in the right direction.

The spirit of collaboration is not unique to the coal industry, but the ability of mining engineers and technicians to tame nature’s forces makes them uniquely able to “get the job done” in the toughest of circumstances. Today, that determination has real value in these changing times.

I very much look forward to joining friends and colleagues in Kyiv on 13 July 2021 at the IV International Coal Conference to further explore the opportunities that lie ahead for the energy industry, especially those opportunities that build on the foundations of the coal industry.

Just transition to a low-carbon economy is both a European and global trend that gained momentum in recent years. Such just transition of coal-mining regions is one of the most important processes affecting the future we build together.

As a responsible business, we have entered a path of a large-scale transformation, for which it is essential that due account be taken of the interests of the society and communities in the regions where our production facilities are located. As a responsible employer, we seek to assist local authorities with developing just transition roadmaps to guarantee the transformation and sustainable development of coal-mining regions.

DTEK firmly believes that businesses should play their role in the just transition, and both national authorities and international partners should support such a role. Therefore, we sincerely welcome the participants to this event and praise the active involvement of the Government and international organisations in the dialogue and co-operation. We are confident that together we will be able to design the future of coal-mining regions and their sustainable economic development under new circumstances.

However, the engagement to climatic neutrality processes calls for a balanced approach, while the energy security and taking the specificity of national interests into account are at stake in the first turn.

It is no secret that more and more coal mines get closed in Ukraine in view of the numerous problems with financing the coal industry support programs. For that matter, this occurs without implementing any programs to deal with social, economic and again, environmental issues.

Up to now, even under the conditions of getting prepared to active implementation of decarbonization technologies, the national coal industry still has a rather broad window of opportunities, determined by the specific features of our nation’s formation and development as a whole, its true opportunities of engagement into the globalization processes.

Besides, the statistics evidence that the situation is far from being even on a geopolitical scale as well. Thus, the squeeze in coal generation in the EU and in the United States of America are not the full-bodied sign that the coal is giving up its positions in the global energetics. The demand for coal is still there. And for a reason, because the renewable energy sources require the guaranteed reserve of capacities, which is covered precisely by the coal power plants.

Moreover, the technologies of replacing the coking coal in metallurgy are on their starting stage and the production of coking coal now corresponds to the modern level of the industry development.

Thus, the natural and inevitable processes of decarbonization require, above all, a balanced approach based on the gradual, fair and as stress-free transformation of coal regions as possible in order to overcome the social, economic and environmental consequences.

I would like to wish inspiration and fruitful discussions, which would become a solid foundation for further positive transformations and achievements, to all the conference participants.

Our State’s coal mining industry is one of the cornerstone economy sectors, an important source of delivering own energy resources to our nation and one of the key factors of its energetic independence.

At the same time, the tendencies of global economy development and environmental protection demand that we all resolve the complex issues of the coal industry restructuring and transformation of the entire coal mining regions and miner mono-cities.

Over the course of many years the scientists of the National Academy of Sciences of Ukraine have acted in partnership with their colleagues from higher education institutions and coal mining enterprises to tackle a large number of tasks, related to occupational safety, reduction of the production costs and improving the coal processing techniques due to implementation of the cutting-edge technical solutions, they have invented and successfully implemented the technologies for extraction, usage and utilization of the mine methane, application of anchor fittings and other issues.

I am sure that cooperation between the National Academy of Sciences of Ukraine and coal mining industry enterprises shall further promote the strengthening of Ukraine’s scientific, technological and industrial potential.

I would like to wish you all fruitful work, good health and persistence in achieving your goals, creative inspiration and a lot of success.