U.S. Coal Industry Suffers, while Coal Use Grows Dramatically in India and China

America’s coal industry has been suffering a serious downturn. Federal regulations have encouraged electric utilities, major users of coal, to either install extremely expensive environmental controls on coal plants or switch to cleaner-burning natural gas for fuel. Many mines have ceased production, and layoffs have been significant.

A bright spot in the U.S. coal industry may be coal from the Illinois Basin. This particular coal burns hotter than many other types, making it more emission-efficient, and it is well suited to today’s scrubber-equipped coal-fired plants.

A major change in energy consumption occurred in 2019 in the U.S., when coal consumption fell 15% from 2018 and renewable energy consumption rose 1%. For the first time, Americans consumed more energy from renewable sources than from coal, according to the Energy Information Administration (EIA).

Meanwhile, both China and India have been constructing large numbers of coal-fired electric utility plants in an effort to spur economic activity and service expanding demand for electric power. For the mid-term, China will continue to rely very heavily on coal for generation. Unfortunately, its coal-fired plants are very heavy polluters, adding to China’s already great dilemma with industrial emissions. China’s burning of coal is one of the world’s largest sources of carbon dioxide emissions. Adoption of clean coal technologies, such as scrubbers (although very expensive), would be an immense help. China holds massive coal reserves. Over the very long term, the country hopes to lessen its dependence on coal, largely through the construction of nuclear plants and an expansion of solar facilities.

As of 2022, the latest year available, the EIA’s analysts found that mainland China accounted for nearly 55% of the world’s coal consumption. China burnt coal equal to 14,451.12 million barrels of oil equivalent that year, up from 14,308.92 million in 2021. In India, BP found that coal consumption reached 3,285.46 million barrels of oil equivalent in 2022, up from 3,283.83 million barrels in 2021.

In contrast, North American consumption fell to 1,618.21 million barrels in 2022, compared to 1,727.73 million barrels of oil equivalent in 2021, and total European consumption rose 5.9% in 2021 to 1,636,19.7 million barrels.

For now, India will continue to rely very heavily on coal-burning electric generating plants. India’s use of coal will accelerate along with its economic growth. For the very long-term, the nation has a vision of significant development of nuclear, as well as solar and other renewable sources.

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U.S. Coal Industry Suffers, while Coal Use Grows Dramatically in India and China, Business and Industry Trends Analysis

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