Category Archives for Marketplace Information
Information on the coal market place.
Editor’s note: I just posted this piece as response to yet another article that plays the tired and cliched “dirty coal” game. It’s time for those of us who support American jobs, as well as affordable, secure, domestic AND clean energy to start speaking up. – We need both clean AND affordable Energy.
Coal can and should play a pivotal role in our energy supply
I was disheartened to see Nithin Coca’s recent article make use of the tired epithet “dirty coal” to attack an energy resource that – despite recent market difficulties – continues to provide this country with almost 40% of its electricity needs. Unfortunately the term “dirty coal” conveniently and simplistically ignores the real-life use of technology that makes coal increasingly clean today.
The American Coal Council welcomes Fredrick (Fred) Palmer as our special guest speaker at the upcoming Coal Market Strategies conference August 10-12, 2015 in Park City, Utah.
Mr. Palmer has been involved with Peabody Energy since 2001, serving for many years as Peabody’s Senior Vice President of Government Relations and most recently as Special Advisor to the Office of the Executive Chairman. As of July 2015, he serves Peabody in a consulting role. Mr. Palmer is a member of the National Coal Council, Executive Committee, and Chairman, Coal Policy Committee.
While coal has lost market share in the U.S. due to a mix of low gas prices and extreme, anti-coal regulation, Rob Nikolewski’s recent Watchdog.org article shows how coal use is growing rapidly around the world.
“Coal remained the fastest-growing fossil fuel in 2013 in both absolute and relative terms, accounting for approximately 30 percent of global primary energy consumption, second only to oil,” said an IEA report on coal markets, released in December.
Another IEA report, published in May, tracking the progress of clean energy showed low-priced coal was the fastest-growing fossil fuel in 2013 and that coal production worldwide outpaced the growth of oil and gas in 2012.
The National Journal is reporting that Gov. Mike Pence, Indiana has sent a letter to the White House openly rejecting the EPA’s “ill-conceived and poorly constructed” Clean Power Plan. Without “demonstrable” and “significant” improvements in the proposed regulation, Pence says his state “will not comply” with the rule.
Gov. Pence also goes on to note that Indiana will use any means available to block the rule’s implementation and criticizes the rule as damaging to Indiana’s economy. Pence notes that the CPP will impact system reliability, force the state to fundamentally restructure its generation system, and that it oversteps the agency’s legal and Constitutional boundaries.
Interesting article on the Utility Dive website that discusses the likelihood of Elon Musk’s stationary storage tech disrupting utility generators.
The short version of the article’s primary argument is that most people won’t have the space or finances to power a home solely on solar panels and Tesla’s batteries. It is much easier and far less expensive to use the existing transmission and utility network to act as the battery.
A recent report by Management Information Services takes a look at the massive, statewide impacts of TVA’s planned closure of almost 3,900 MW of coal-fueled generation and expectations for further closures in the near future. The broad, widespread economic and social impacts on Tennessee’s people, their economy, industry, and productivity are frightening.
A short read of the report’s findings are that, as TVA drops coal from its generation fleet, the people of Tennessee will pay dearly.
- 20% higher electricity rates
- $7 billion reduction in gross state product
- $700 million in lost state and local government tax revenues
Here is another article that looks at the true costs of generating electricity from wind. As I have noted in many previous Coalblog posts, we consistently hear how wind generation has achieved “cost parity” with fossil fuels. However, a closer look at the actual costs involved reveal a much different story, with wind power coming in at an estimated $149 / MWh.
Over the past 35 years, wind energy – which supplied just 4.4% of US electricity in 2014 – has received US$30 billion in federal subsidies and grants. These subsidies shield people from the uncomfortable truth of just how much wind power actually costs and transfer money from average taxpayers to wealthy wind farm owners, many of which are units of foreign companies. …
Interesting discussion on FOX Business channel. Tom Borelli and John Pippy, CEO of the Pennsylvania Coal Alliance discuss the “fundamental transformation” of American energy production.
Editor’s note: This guest editorial, prepared by Dennis Drebsky with Nixon Peabody, LLP, takes a decidedly different look at coal use forecasts. While many energy experts are predicting declines in coal use, Drebsky argues that the sheer size of the Chinese energy market, along with the affordability and reliability of coal, and the Chinese focus on economic development entails a long-term Chinese reliance on coal-based energy.
China is the world’s largest producer and consumer of coal. However, there have been repeated predictions that China’s use of coal will substantially decline during the next decade due to environmental concerns. That China should be a prime target of these concerns should be no surprise since China produces and consumes almost as much coal as the rest of the world combined. A recent survey found that China accounts for 46 percent of the world’s coal production and 49 percent of consumption. To put this in context, China produces nearly four times as much coal as the second largest producer, the United States. Coal accounts for approximately 70 percent of Chinese energy consumption and this use has held steady, if not increased, during the last 30 years.