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Friday, 14 February 20
IS THE US COAL INDUSTRY COMPLETELY BURNED OUT? -FORBES
 This is the fourth of a multi-part series on the state of the main sources of energy in the US and how they compare globally. The series will cover solar, wind, oil & gas, coal, nuclear, and geothermal (so far) and will answer the same four questions for each.
1. How big is the US coal industry, and what is its growth trajectory?
US coal employment peaked in the 1920s and the whole sector (mining, transport, and power plants) currently supports about 174,000 jobs. In 2018, US mines produced about 756 million short tons of coal, the majority of which (544 million short tons) was burned in coal-fired power plants to generate 966 billion kWh of electricity, about 24% of all electricity generated in the US.
However, coal has largely fallen out of favor for electricity production as price declines in natural gas and, to a lesser extent, renewables have made it harder for coal plants to make money in electricity markets. The average US coal plant is now over 40 years old, and there is not a single commercial coal plant under construction in the country. Some scenarios have coal generation remaining flat for the next couple of decades, but most market fundamentals and societal goals indicate further declines.
In the past decade, over 500 coal-fired power units have been retired, or announced their retirement. Further, it is estimated that over 85% of existing coal plants will be uneconomic compared to local renewables by 2025. These dire conditions have many states with regulated electricity markets scrambling to either financially support uneconomic coal plants or provide securitization strategies to allow them to retire early while still making good on their debts. As demand for coal has declined, almost a dozen coal mining companies have filed for bankruptcy in the past 5 years.
On the other hand, US coal exports have been trending upwards as the world economy continues its decade long recovery and demand for energy and goods continues to increase.
Over half of US coal exports are for making steel (metallurgical/coking coal) and the rest for electricity (steam/thermal coal). Major destinations for US coal exports are India (15%), The Netherlands (11%), and Japan (9%), among others. Some countries, largely led by China, are continuing to build coal plants, which could increase demand for US coal exports. Although, some western states have sought to block coal export terminals, forcing some US exports to depart through Canada.
2. Which US states lead in coal?
While Appalachia is home to the vast majority of individual coal mines, the relatively few number of mines in the western Powder River Basin (PRB) produce many more tons of coal annually. Of the 43% of US coal that comes from the PRB, 93% of that (40% of US total) comes from the state of Wyoming. West Virginia produced the second highest amount of US coal, almost 13% of total US production.
Although Texas only produces the poorest quality coal, lignite, it nonetheless consumes more coal than any other state, almost by a factor of two, even though its usage is down almost 20% (2018 vs. 2017). North Dakota consumes the most amount of coal for uses other than power generation.
3. What are the biggest challenges faced by the coal sector today?
By far the biggest realized challenge facing the US coal sector is economic pressure from low cost natural gas, and to a lessor, though growing, extent, renewables. The hydraulic fracturing boom has vastly increased the supply of natural gas, making it stubbornly cheap and the new firm fuel of choice in power generation. A recent study found that low cost natural gas prices was responsible for 85-90% of wholesale electricity price declines in some markets.
Also, the US is generally not building big power plants (of any type) anymore. Coal (and current generation nuclear) plants are generally built as large units to produce cheaper electricity. However, other technologies, such as gas and renewables, can be built in smaller sizes, for cheaper, and thus incur less capital risk, making them easier to finance. The US Department of Energy has made a push for small modular coal plants, but there doesn’t appear to be much traction as of yet.
The biggest existential threat faced by the US coal sector is by far climate change. Of the major fuels used to generate electricity in the US, coal produces the most carbon emissions. But technical and political times are changing. About 45% (and growing) of all electricity (by at least 2050) in the US has been pledged to be carbon-free and one of the easiest ways to start to make good on such promises is to shutter coal plants.
Coal’s future (at least for power production) appears to be burning out. Other technologies, such as gas and renewables, are beating coal on price, flexibility, and finance-ability. Absent significant improvements in carbon capture and sequestration technology, most developed markets, but not all, are likely to continue shuttering their coal fleets over the next couple of decades. However, the world is going to continue to need steel in the short and long-term, and while electric arc furnace metals recycling and new smelting technologies might help reduce the need for metallurgical coal and its associated emissions, the vast majority of steel is still currently made using coal.
Source: Forbes
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Friday, 22 November 19
UNCERTAINTY IN THERMAL COAL MARKET PERSISTED IN 3Q19 - ADARO
Uncertainty in thermal coal market persisted in 3Q19, mainly due to the actions, or inactions, of China in setting policies for global coal market. ...
Friday, 22 November 19
CIL TO DEVELOP 55 NEW COAL MINES IN NEXT 5 YEARS: COAL MINISTER
State-owned CIL will develop 55 new coal mines and expand 193 existing ones in the next five years, Parliament was informed. The company is also un ...
Thursday, 21 November 19
4TH DEEP OFFSHORE WEST AFRICA CONGRESS 2020
4th Deep Offshore West Africa Congress 2020
17 Janaury 2020
Accra, Ghana
Press Release: Following the great succ ...
Thursday, 21 November 19
INDONESIA PLANS TO KEEP $70/T COAL PRICE CAP FOR PLN, DMO - REUTERS
Indonesia’s energy minister Arifin Tasrif said his ministry plans to maintain a price cap on coal being sold to state electricity utility, PT ...
Wednesday, 20 November 19
FOREIGN DIRECT INVESTMENTS IN COMMERCIAL COAL MINING IN INDIA? - DIPESH DIPU
In August 2019, Government of India announced its approval for Foreign Direct Investment (FDI) for coal mining, processing and sale. Not that FDI i ...
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- Formosa Plastics Group - Taiwan
- Iligan Light & Power Inc, Philippines
- Indonesian Coal Mining Association
- Price Waterhouse Coopers - Russia
- IHS Mccloskey Coal Group - USA
- Holcim Trading Pte Ltd - Singapore
- Electricity Generating Authority of Thailand
- VISA Power Limited - India
- Deloitte Consulting - India
- SMC Global Power, Philippines
- Energy Link Ltd, New Zealand
- McConnell Dowell - Australia
- Sindya Power Generating Company Private Ltd
- Electricity Authority, New Zealand
- Global Green Power PLC Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Metalloyd Limited - United Kingdom
- Directorate Of Revenue Intelligence - India
- Xindia Steels Limited - India
- Cement Manufacturers Association - India
- Indogreen Group - Indonesia
- Agrawal Coal Company - India
- Marubeni Corporation - India
- Lanco Infratech Ltd - India
- Jindal Steel & Power Ltd - India
- ASAPP Information Group - India
- Renaissance Capital - South Africa
- OPG Power Generation Pvt Ltd - India
- Attock Cement Pakistan Limited
- Bukit Asam (Persero) Tbk - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Krishnapatnam Port Company Ltd. - India
- Gujarat Sidhee Cement - India
- Petrochimia International Co. Ltd.- Taiwan
- Central Electricity Authority - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Merrill Lynch Commodities Europe
- International Coal Ventures Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Rio Tinto Coal - Australia
- Mercuria Energy - Indonesia
- Thiess Contractors Indonesia
- Kideco Jaya Agung - Indonesia
- Eastern Energy - Thailand
- Madhucon Powers Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Toyota Tsusho Corporation, Japan
- Parliament of New Zealand
- Sarangani Energy Corporation, Philippines
- Wood Mackenzie - Singapore
- Bharathi Cement Corporation - India
- Semirara Mining and Power Corporation, Philippines
- The University of Queensland
- Sree Jayajothi Cements Limited - India
- Indian Energy Exchange, India
- Thai Mozambique Logistica
- San Jose City I Power Corp, Philippines
- Baramulti Group, Indonesia
- Binh Thuan Hamico - Vietnam
- Vizag Seaport Private Limited - India
- IEA Clean Coal Centre - UK
- MS Steel International - UAE
- Miang Besar Coal Terminal - Indonesia
- Banpu Public Company Limited - Thailand
- PTC India Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Singapore Mercantile Exchange
- Cigading International Bulk Terminal - Indonesia
- Vedanta Resources Plc - India
- CIMB Investment Bank - Malaysia
- LBH Netherlands Bv - Netherlands
- GN Power Mariveles Coal Plant, Philippines
- CNBM International Corporation - China
- Manunggal Multi Energi - Indonesia
- Larsen & Toubro Limited - India
- TeaM Sual Corporation - Philippines
- Goldman Sachs - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Aboitiz Power Corporation - Philippines
- Sinarmas Energy and Mining - Indonesia
- Kumho Petrochemical, South Korea
- Vijayanagar Sugar Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Bangladesh Power Developement Board
- Maharashtra Electricity Regulatory Commission - India
- Bukit Baiduri Energy - Indonesia
- Makarim & Taira - Indonesia
- Meenaskhi Energy Private Limited - India
- Georgia Ports Authority, United States
- Savvy Resources Ltd - HongKong
- Power Finance Corporation Ltd., India
- The State Trading Corporation of India Ltd
- Bhushan Steel Limited - India
- ICICI Bank Limited - India
- Indo Tambangraya Megah - Indonesia
- Star Paper Mills Limited - India
- Latin American Coal - Colombia
- Global Coal Blending Company Limited - Australia
- Anglo American - United Kingdom
- Planning Commission, India
- Borneo Indobara - Indonesia
- Posco Energy - South Korea
- Interocean Group of Companies - India
- Salva Resources Pvt Ltd - India
- SMG Consultants - Indonesia
- Dalmia Cement Bharat India
- India Bulls Power Limited - India
- Carbofer General Trading SA - India
- Riau Bara Harum - Indonesia
- Intertek Mineral Services - Indonesia
- Jaiprakash Power Ventures ltd
- Tamil Nadu electricity Board
- Bulk Trading Sa - Switzerland
- Leighton Contractors Pty Ltd - Australia
- Medco Energi Mining Internasional
- Siam City Cement - Thailand
- Samtan Co., Ltd - South Korea
- GMR Energy Limited - India
- Mercator Lines Limited - India
- Coastal Gujarat Power Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Trasteel International SA, Italy
- GAC Shipping (India) Pvt Ltd
- Petron Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Australian Coal Association
- European Bulk Services B.V. - Netherlands
- Malabar Cements Ltd - India
- GVK Power & Infra Limited - India
- Ministry of Mines - Canada
- Bayan Resources Tbk. - Indonesia
- Straits Asia Resources Limited - Singapore
- Essar Steel Hazira Ltd - India
- Altura Mining Limited, Indonesia
- Timah Investasi Mineral - Indoneisa
- Indian Oil Corporation Limited
- Ministry of Finance - Indonesia
- Chamber of Mines of South Africa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- SN Aboitiz Power Inc, Philippines
- Oldendorff Carriers - Singapore
- Australian Commodity Traders Exchange
- Coal and Oil Company - UAE
- Sojitz Corporation - Japan
- Kapuas Tunggal Persada - Indonesia
- Gujarat Electricity Regulatory Commission - India
- PowerSource Philippines DevCo
- Kobexindo Tractors - Indoneisa
- Ind-Barath Power Infra Limited - India
- New Zealand Coal & Carbon
- Sical Logistics Limited - India
- Economic Council, Georgia
- Energy Development Corp, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Orica Mining Services - Indonesia
- Chettinad Cement Corporation Ltd - India
- Independent Power Producers Association of India
- Eastern Coal Council - USA
- Parry Sugars Refinery, India
- Edison Trading Spa - Italy
- Antam Resourcindo - Indonesia
- Central Java Power - Indonesia
- The Treasury - Australian Government
- London Commodity Brokers - England
- Kohat Cement Company Ltd. - Pakistan
- Jorong Barutama Greston.PT - Indonesia
- Orica Australia Pty. Ltd.
- Indika Energy - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Semirara Mining Corp, Philippines
- Global Business Power Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Ambuja Cements Ltd - India
- Commonwealth Bank - Australia
- Bhoruka Overseas - Indonesia
- Bukit Makmur.PT - Indonesia
- Therma Luzon, Inc, Philippines
- Kaltim Prima Coal - Indonesia
- Uttam Galva Steels Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Kepco SPC Power Corporation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Karaikal Port Pvt Ltd - India
- Sakthi Sugars Limited - India
- Aditya Birla Group - India
- Ceylon Electricity Board - Sri Lanka
- PNOC Exploration Corporation - Philippines
- Mjunction Services Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Meralco Power Generation, Philippines
- South Luzon Thermal Energy Corporation
- Barasentosa Lestari - Indonesia
- Standard Chartered Bank - UAE
- Bhatia International Limited - India
- PetroVietnam Power Coal Import and Supply Company
- AsiaOL BioFuels Corp., Philippines
- Rashtriya Ispat Nigam Limited - India
- Mintek Dendrill Indonesia
- Kartika Selabumi Mining - Indonesia
- Coalindo Energy - Indonesia
- Minerals Council of Australia
- Grasim Industreis Ltd - India
- Heidelberg Cement - Germany
- Port Waratah Coal Services - Australia
- Simpson Spence & Young - Indonesia
- Ministry of Transport, Egypt
- Africa Commodities Group - South Africa
- Romanian Commodities Exchange
- Billiton Holdings Pty Ltd - Australia
- Tata Chemicals Ltd - India
- White Energy Company Limited
- Wilmar Investment Holdings
- Bank of Tokyo Mitsubishi UFJ Ltd
- Videocon Industries ltd - India
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