AMN - COMMODITIES: Coal continues as guarantor of energy security

Coal continues to act as a guarantor of energy security, supplying 37% of global electricity. In its annual World Energy Outlook 2017 report, the International Energy Agency (IEA) forecasts that coal will remain the largest single source of electricity generation through to 2040.

World Coal Association CEO Benjamin Sporton says, “At 26% of global electricity, most of the new demand for coal will be driven by India and South East Asia.”

The IEA talks about the regional differences in global coal use, where some advanced nations are reducing their reliance on coal while developing and emerging countries are increasing their demand.

“For these developing countries, coal is often a fuel of choice, as it is inexpensive, secure, easily storable and, in the case of domestic coal, brings employment benefits for local workers,” Mr Sporton says.

Today coal is found in 70 countries and actively mined in 50.

Per IEA data, China still leads the world in the production and consumption of coal producing 2959.6 million tonnes in 2016, followed by India producing 761.4 million tonnes, the US producing 582.9 million tonnes, then South Africa at 178 million tonnes, Japan 138.3 million tonnes and Korea 101.8 million tonnes.

Indonesia, the Russian Federation, Poland, Kazakhstan, Taiwan and Australia all produce under 100 million tonnes annually.

At current rates of consumption, the IEA forecasts that coal will last 114 years, compared to 53 years for gas and only 51 years for oil.