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Thursday, 07 December 17
THE ROLE OF COAL - AN INCONVENIENT TRUTH - BENJAMIN SPORTON, WCA
World Coal LogoAt the climate talks in Bonn, a global alliance to phase out coal was launched. This, along with other rhetoric about developments in the energy sector might lead many observers to believe the end of coal is in sight.

The projections from the recently published International Energy Agency World Energy Outlook 2017 (IEA WEO 2017) tell a different story though. I’ve pulled out some of the key stats from the latest World Energy Outlook:

Coal-generated electricity is expected to grow by 8.6% through to 2040 despite its share of global generation reducing from 37% to 26% as other sources grow too.

At 26%, coal will remain the single largest source of electricity generation through to 2040.

Southeast Asia’s energy demand is projected to grow 65.1% by 2040 when compared with 2016 levels, much of it powered by coal.

India, Pakistan, Bangladesh and Southeast Asia become the primary engines of future coal demand growth. Coal demand in India more than doubles over the period to 2040, while in Southeast Asia it grows almost 2.5 times.

I’ve been asked often about how coal fits within the Paris Agreement. The success of the Paris Agreement will lie with the Nationally Determined Contributions (NDCs) in which more than 180 countries have submitted national commitments to reduce carbon emissions. The countries (including the world’s major economies) have chosen various pathways to meet their obligations - forestry, automotive emissions, scaling up renewable energy, efficiency in energy consumption, or reducing the reliance on fossil fuels for electricity generation.

Through their NDCs, 24 countries have identified a role for modern coal technologies as a way to meet their Paris Agreement targets. Countries like Bangladesh, Pakistan, Ghana, India, Nigeria and many others need to balance economic development with climate mitigation efforts and have made it clear that low emission coal technologies are central to these efforts.

It’s clear that excluding coal from the energy mix of these 24 countries is not an option.

About 37% of all electricity generated today is sourced from coal. According to the IEA’s Energy Access Outlook 2017, in the past 16 years, out of the 1.2 billion people who gained access to electricity, almost half derived it from coal. And forecasts show that global coal demand continues to grow, with coal-fired power plants being built in parts of Africa, China, India, and Southeast Asia.

The coal phase-out alliance announced during the Bonn climate talks currently represents just 2% of global coal use and includes a number of countries that don’t actually use coal.

Many countries will continue to invest in coal-fuelled power because the fuel remains affordable and reliable, while new coal technology is making coal use cleaner. In 2040 coal will still be the largest single source of electricity. It’s therefore imperative that we talk about coal and meeting the Paris Agreement targets with a dose of reality.


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Recent News

Wednesday, 13 December 17
REFINED COAL HAS MADE UP NEARLY ONE-FIFTH OF COAL-FIRED POWER GENERATION SO FAR IN 2017 - EIA
The U.S. power sector consumption of coal is increasingly shifting to refined coal, even as coal-fired electricity generation decreases. Use of ref ...


Wednesday, 13 December 17
DEMAND FOR THERMAL COAL LOOKED RELATIVELY ROBUST - DANIEL HYNES
Coal prices were a touch higher. Demand for thermal coal looked relatively robust, after reports continued to surface that Chinese authorities have ...


Wednesday, 13 December 17
SHIPPING MARKET INSIGHT - GEORGE PANAGOPOULOS
As another year is coming to an end and much has been already written about the positive reversal in the dry bulk market, we think it is interestin ...


Monday, 11 December 17
INDIA CONSUMERS ARE SAID TO BE DESPERATELY SEEKING CARGOES - DANIEL HYNES
Coal markets were stronger, as strong demand outside China continues to spur buying said Daniel Hynes, Senior Commodity Strategist at ANZ. Acc ...


Monday, 11 December 17
CAPESIZE FFA MARKET LOOKING PROMISING MOVING FORWARD - FIS
Capesize Another very promising day for the big ships as rates continued to firm in both oceans and the paper market ate into the backwardation s ...


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