Coal, a foregone fuel for climate advocates, is gradually bouncing back following the global energy crisis; Are we experiencing coal’s final act?
The demand for coal has skyrocketed in response to the rising price of natural gas, although coal emits more toxic greenhouse gases than rival fuels. In addition, coal-fired plants have been a supporting pillar to renew stockpiles due to the challenges in the energy sector across several countries that have slowed down production and business processes.
The bounce-back of coal amid a global push to promote clean energy and decarbonise electricity generation appears that fossil fuels still holds much power in controlling the energy mix (learn more).
Amid the varied fuel sources, coal steadily declined for a decade and stood at twenty per cent (20%) in 2020. However, with the post-pandemic economic recovery, it shot up to twenty-four per cent (24%).
Coal declined partly due to the rise of renewables (solar and wind) but had a significant fall due to increased natural gas production. Although derived from fossil fuel, natural gas has a lower greenhouse gas – emission rate, and its use as fuel saw an increase from twenty-three (23) per cent in 2011 to thirty-nine (39) per cent in 2020.
Why the Coal Bounce Back?
The high demand for natural gas is driven by the recovering economies and the likelihood of extreme weather across Europe and North-East Asia. While China is accumulating domestic coal, Russia is being hesitant in supplying gas to Western Europe.
The energy crisis leaves countries no choice but to regress to coal for electricity generation, industrial and commercial uses. Currently, thermal coal prices are hitting record levels in Asia. China has equally begun using coal as a fuel source and being in an energy crisis for months.
Given the current energy crisis, there is much to be done to transform the energy mix into clean energy derivatives. In addition, energy systems have to be designed and structured to defeat coal use to attain a net-zero global economy as we advance.