Coal markets remain robust as Asia increases reliance on coal to fill supply gaps; output set a record in 2023

Despite coal's reputation as the "dirtiest fossil fuel," it is still considered a reliable form of energy, and its removal from global energy systems looks to be a slow ride. "Thanks to a combination of China’s energy insecurity. . . and rising Indian demand, the continued fallout from the war in Ukraine and faltering international programs to wean developing economies off fossil fuels, coal is proving remarkably resilient," reports Bloomberg News. "Output hit a record last year."

Coal prices remain steady as the Asian market returns to coal as a more reliable energy source. "By 2026, China and India will comprise more than 70% of global coal use," Bloomberg reports. Those two countries, along with Indonesia, which opened new coal power plants last year, use about 93% of the world’s coal power, according to Global Energy Monitor.

Rob Bishop, chief executive officer of Australian miner New Hope Corp., told Bloomberg, "You look at Asia, the demand and the build-out of coal-fired power plants, particularly in India — coal’s not going anywhere anytime soon." Bloomberg reports, "In 2022, Russia’s invasion of Ukraine and blackouts during heatwaves in India further bolstered coal demand. By last year, output had risen to a record 8.7 billion tons, according to the International Energy Agency."

As nations work to transition from coal to renewables, coal will play a vital role. Global change to cleaner sources depends on multiple variables, particularly in countries such as China and Indonesia. Bloomberg reports, "Coal phaseouts, however, have proved far more challenging than anticipated. . . .The transition tests years-long expectations of rapid peaks and subsequent steep declines." Bishop told Bloomberg, "We see that the world needs more operators to mine coal and support the transition over many decades to come."