About National Coal Supply Corporation
The National Coal Supply Corporation (NCSC) handles the procurement of coal and its transportation from source countries to the Israeli Electric Corporation’s coal power stations – the Rottenberg station in Ashkelon and the Orot Rabin station in Hadera.
A government-held company, the National Coal Supply Corporation is under full ownership of the Israeli Electric Corporation.
Background for the Establishment of the Company
The founding of the company in 1981 was brought about by a combination of various elements:
- A demographic increase requiring preparation for an imminent rise in the electricity consumption in Israel.
- The evolution of the Israeli industrial sector, which significantly increased electricity consumption.
- The high costs of fuel oil (mazut).
- The efforts to reduce air pollution levels entailing the use of fuel oil.
- Decreasing dependency on fuel oil, widely controlled by hostile countries.
Upon establishment of the “Orot Rabin” power station, built to extend the manufacturing capacity of the Israeli Electric Corporation, the Israeli government wished to disperse risks in the energy market and ensure that alongside the use of mazut, the Israeli Electric Corporation would also enjoy access to alternative energy sources. Coal was the natural choice due to its availability and cost.
Key Activities
The NCSC employs approximately 25 people and its main activities focus on coal and shipping, both unique international markets.
The coal supplied to the Israel Electric Corporation is obtained from various source countries, such as Columbia, Russia, South Africa etc.
Coal purchase is performed in coordination with the requirements of the Israeli Electric Corporation and includes various types of coal, featuring unique properties and differentiated by several components including carbon, hydrogen, oxygen and organic compounds.
The company cooperates solely with reliable and renowned coal suppliers in the international coal market, and continuously strives to uncover new sources of coal.
While handling purchase contracts, the company handles coal transportation from source countries to the coal power stations in Israel (Hadera and Ashkelon), based on contracts with shipping suppliers for leasing Panamax and Cape Size bulk carriers, each featuring a cargo capacity of approximately 80,000 and 170,000 tons, respectively.
Another area of company activity is the subleasing of bulk carriers. Subcontracts of affreightment serve as a means for cost savings, and also facilitate operational flexibility in the sailing schedule.
Moreover, the company acts as a ship agency for coal ships arriving at Israel’s sea ports, and under this framework, the company provides the ship’s crew with equipment, food supplies, health services and more.
As of 2019, the company’s financial turnover was $ 760 Million.
The NCSC – Future Prospects
In 2020 steam coal’s share in IEC’s fuel mix for electricity generation was 42.7%, and accounted for 26% of Israel’s total fuel mix for electricity generation.
Following discoveries of several gas sources facing the Israeli shores over recent years, the Israeli government decided to promote the use of natural gas in Israel, with most of it designated for energy production.
In the near future, coal consumption is expected to decline due to the increasing usage of gas.
Mr. Bornstein serves as President & CEO since 11/2008.
Mr. Barak Silverstein serves as the Chief Financial Officer of NCSC and Head of the IT Department since 2008. Barak is a CPA and holds a B.A. in economics and accounting from Ben-Gurion University, as well as an LL.M from Bar–Ilan University. He was certified as an accountant since 1993.
Ms. Shapira has served as Corporate Secretary since 01/2004. She holds a BA in Economics from the Hebrew University in Jerusalem and an MBA from Heriot-Watt University, UK. She also served as Assistant to the CEO in a NASDAQ-traded software company in the field of digital graphics. In addition, she served as Administrative Manager of start-ups in the fields of communications and dental equipment.
Adv. Shetrit has served as an in-house legal counsel since 01/2021. Adv. Shetrit holds degrees in Business Management, and LLB and LLM (with great honors) from Tel-Aviv University. She was admitted to the Israeli Bar in 2005, and since 2008 serves as the legal counsel of Business Development & Innovation in The Israel Electric Corporation Ltd.