January 11, 2024 - In Dec. 2023, 198 signatory countries at the Conference of Parties (COP) collectively agreed that the world must “transition” away from fossil fuels like coal in a “just, orderly, and equitable manner” in order to cut greenhouse gas emissions to nearly zero by 2050. However, there are no timelines yet, so fossil fuels are going to be the pillar of economies everywhere in the years to come.

Coal is the world's most dominant and most carbon-intensive source of energy. Four main types of coal include:

(i) Anthracite
(ii) Bituminous
(iii) Subbituminous
(iv) Lignite

This fossil fuel accounts for more than 37% of the global electricity supply, playing a fundamental role in powering homes and industries and alleviating the world's energy poverty. Even today, about 860 million people across the globe live without access to electricity. As such, modern life is simply unimaginable without coal.

Global coal usage actually reached a record high in 2023 as demand for the fossil fuel increased 1.4% in the year to exceed 8.5 billion metric tons for the first time, reported the International Energy Agency (IEA). Its global consumption is forecast to remain well over 8 billion metric tons in 2026.

Coal is an essential resource for tackling the challenge of rapidly increasing energy consumption due to being significantly cheaper and more accessible than other fossil fuels. Unlike oil and gas, it can be found in abundance all over the world.

The thing with coal is it does not require high-pressure pipelines, costly processing, or expensive protection during transport, making it easier to store and transport than other highly flammable fossil fuels. Also, before it is used, coal only needs to be mined, unlike other fossil fuels, which require a lengthy and costly refining process. 

Not to mention, coal reserves are distributed a lot more equally around the planet. As of Jan. 2020, the US has the world's largest coal reserves, constituting nearly 90% of all fossil fuel reserves, with an estimated 250 billion tons.

Besides being cheaper and accessible, coal is also very versatile and can be used in a range of processes. Coal is primarily used for power generation worldwide and is actually an affordable form of energy, with electricity generated by coal being less expensive than electricity generated by other sources. 

Even in the US, coal is used to produce electricity by burning the fossil fuel in power plants. The resulting heat from that is used to change water into high-pressure steam, which drives a turbine, which then produces electricity. In 2019, about 23% of all electricity in the US was generated by coal-fired power plants, as per the US Energy Information Administration.

This fossil fuel is also used for producing steel and concrete and is a core component in iron making, as well as other metals like aluminum and copper. Coal and its by-products are further used in water filters and air purification systems, in the construction of airplanes and automobiles, in medicines, and in chemical processes to extract rare earth elements.

Then there are gasification and liquefaction use cases of coal, with the majority of coal-to-gas projects located in the USA and China, with a few in Australia, Canada, India, South Africa, and Indonesia. In addition to producing chemical building blocks, such as ammonia, methanol, and urea, coal is also used in the paper, textile, and glass industries. Along with the manufacture of carbon fiber, it provides ingredients like silicon metals, which are used to produce components for the personal care and household sectors.

Despite coal's abundance, affordability, and reliability, the industry faces challenges in the form of developing technologies and pathways to zero emissions, which is identified as a factor in climate change.

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