The Coal Industry
Coal is a combustible, non-renewable, sedimentary rock that can be burned for fuel and used to generate electricity. It is the largest source electricity globally and is mainly composed of carbon, hydrogen, and oxygen. Coal can be extracted from the either by surface mining or underground mining. Once extracted, it can be used for heating and industrial processes or to fuel power plants for electricity.
Around the world, coal is primarily used to produce heat. It is the leading energy choice for most developing countries, and worldwide consumption increased by more than 30% in 2011. Electricity is produced and distributed through coal-fired power plants. In coal-fired power plants, coal is combusted and heats water in boilers to create steam, which turns a turbine and activates a generator to produce electricity. Poland, China, Australia, and Kazakhstan are other nations that rely on coal for electricity. Global steel production is dependent on coal as it is a vital component in the steel making process. Approximately 70% of steel produced uses coal. Coal can also be used to produce syngas, which is used as a transportation fuel like petroleum or diesel.
Burning coal releases gases and particulates that are harmful to the environment, primarily carbon dioxide. When coal and other fossil fuels are extracted and burned, they release sequestered carbon into the atmosphere, leading to a build-up of greenhouse gases and adversely affecting climates and ecosystems. In 2011, coal production was responsible for 79% of the U.S carbon emissions.
The Australian economy relies on coal as a source of affordable, reliable electricity. Australian coal is in demand for energy, cement, and steel making. It also reduces emissions when compared to lower-quality coal from other suppliers. In 2019, Australia held 14% of the world’s coal reserves (black and brown), ranking third behind the United States (24%) and Russia (15%). Australia is ranked highly as its coal is high quality because of its low moisture and ash content, and high carbon content.
Growth in power generation is expected to drive the coal market in Australia. This is due to increased demand for electricity, and increased use of coal in power generation in Australia.
Coal is the major energy source for electricity production in the country, and coal power generation accounted for about 56% of the total electricity produced in the country in 2019.
Australia has 149079 million tonnes of coal in its reserves. Among which the black coal, which is mainly used for coal power generation accounts for the largest share in the Australian coal market. Hence, coal power generation is expected to drive the market during the forecast period.