nickel smelting indonesia

Global Green Energy Paradox: Balancing Ideals with Realities

As the world races towards a sustainable future, a paradox emerges: the very technologies heralded as solutions to climate change—solar panels, electric vehicles, and batteries—are often produced using fossil fuels, particularly coal, in countries like China and Indonesia. Meanwhile, in Western nations, environmental debates frequently oppose transitional technologies such as carbon capture and storage (CCS) and blue hydrogen. This dichotomy raises critical questions about the fairness and efficacy of global climate strategies.​

Indonesia: A Case Study in Coal-Driven “Green” Li-ion Battery Growth

Indonesia has rapidly ascended to become the world’s leading nickel producer, a metal essential for electric vehicle batteries. This surge, however, has been powered by a significant increase in coal consumption. In 2022, Indonesia’s coal use rose by 33% compared to the previous year, contributing to a 20% increase in the country’s greenhouse gas emissions from fossil fuels. ​The GuardianMongabay+1Homepage – Lead the Charge+1

Graphical representation of coal consumption in Indonesia from 1990 to 2023. This increase in coal can be directly attributed to “green” lithium-ion batteries. Indonesia is the world’s leading producer of nickel used in only one type of cathode in a lithium-ion battery. China, who’s reporting is more opaque than any other country, refines all metals. China’s coal growth is outpacing the rest of the world combined as they are the only country capable of making “green” energy. Nickel is just one metal used in lithium-ion batteries. The featured image of this post shows nickel smelting operations in Indonesia. (source)

The Indonesia Morowali Industrial Park, a hub for nickel processing, alone accounts for as much coal power capacity as entire countries like Pakistan or Mexico. This reliance on coal not only elevates carbon emissions but also leads to environmental degradation, including pollution of the Sulawesi Sea due to ash runoff. ​Homepage – Lead the Charge

China’s Dominance in Renewable Manufacturing and Coal Dependency

China’s role in the global renewable energy supply chain is unparalleled. It produces approximately 83% of the world’s polysilicon, a critical component for solar panels, with 45% of this production concentrated in the Xinjiang region. These manufacturing processes are heavily reliant on coal-powered electricity, particularly in provinces like Xinjiang and Jiangsu, where coal accounts for more than 75% of the annual power supply. ​payaca.comIEA Blob Storage

Moreover, China’s construction of new coal-fired power plants reached a 10-year high in 2024, signaling a continued commitment to coal as a primary energy source. This expansion supports the energy-intensive production of various metals essential for renewable technologies, including lithium, cobalt, nickel, iron, and manganese.​Carbon Brief

The Western Dilemma: Opposition to Transitional Technologies

In contrast, many Western environmental groups staunchly oppose transitional technologies like CCS and blue hydrogen, viewing them as distractions from the pursuit of 100% renewable energy. However, these technologies offer practical solutions for reducing emissions from hard-to-decarbonize sectors such as steel, cement, and chemical manufacturing.​

Blue hydrogen, produced from natural gas with carbon capture, can serve as a bridge fuel, lowering emissions while renewable infrastructure scales up. Similarly, CCS can mitigate emissions from existing fossil fuel-based industries. By dismissing these options, Western policies may inadvertently hinder progress towards climate goals.​ I am writing this post after reading about another “environmental” organization called the Delaware River Keeper that staunchly opposes sustainable hydrogen while claiming to concern themselves with GHG abatement. The irony and ignorance are so great that it can make one’s head explode. When I founded RMP over 15 years ago promoting a move away from fossil fuels, I never thought that I would face opposition of clean energy technologies like hydrogen and CCS from environmentalists. I am learning the hard way that, I have to fight back against these radicals who can influence policy that is bad for our water, our air, and most importantly, our economy.

A Call for Balanced and Equitable Climate Strategies

The disparity between Eastern production practices and Western environmental policies underscores the need for a more balanced approach to global decarbonization. Criticizing transitional technologies in the West while relying on fossil fuel-intensive imports from the East creates a moral and practical inconsistency.​

To achieve meaningful progress, climate strategies must:​

  • Acknowledge the full lifecycle emissions of renewable technologies, including production and supply chain impacts.
  • Support a diverse mix of solutions, embracing both renewable energy and transitional technologies like CCS and blue hydrogen.
  • Promote international collaboration to improve environmental standards and reduce fossil fuel reliance in manufacturing processes globally.

By addressing these disparities and embracing a multifaceted approach, the global community can work towards a more equitable and effective path to sustainability. While RMP supports technologies like batteries, solar, and wind, it is simply irresponsible to not acknowledge they have supply chains with similar impacts to any other form of energy.

Conclusion: Fairness, Pragmatism, and Global Responsibility

Climate change is a global problem, and it demands global consistency. Demonizing certain technologies in Western countries while ignoring dirtier realities abroad is not just hypocritical — it may slow down meaningful progress. A truly just and effective climate strategy must be technology-agnostic, emissions-focused, and globally honest.

This means embracing every responsible tool we have — renewables, CCS, hydrogen (blue and green), nuclear, and efficiency — while ensuring that the environmental costs of clean energy materials are not hidden behind distant smokestacks.

Only through this kind of balanced pragmatism can we achieve real, sustainable decarbonization.


References:

  1. Mongabay. “Indonesia’s coal burning hits record high — and ‘green’ nickel is largely why.” July 2023. ​Mongabay
  2. Lead the Charge. “A case study on nickel mining and processing in Indonesia.” 2024. ​Homepage – Lead the Charge
  3. The Guardian. “Cheap coal, cheap workers, Chinese money: Indonesia’s nickel success comes at a price.” April 2024. ​The Guardian
  4. Payaca. “Where are solar panels made?” 2024. ​payaca.com
  5. International Energy Agency. “Special Report on Solar PV Global Supply Chains.” 2021. ​IEA Blob Storage
  6. Carbon Brief. “China’s construction of new coal-power plants reached 10-year high in 2024.” March 2025. ​Carbon Brief

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