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Coal Use in Down in Nation, Especially in Alabama

 

 

By Charles J. Dean 

 

May 3, 2016 - A new report shows that coal used to generate electricity by American utility companies declined by 29 percent since 2007.


The new study, by the U.S. Energy Information Administration released a Today in Energy looked at the drop in coal use for electricity generation in 48 of the 50 states. It found that six states, including Alabama, accounted for almost half of the decline in total coal consumption by the U.S. power sector.


The study found that the consumption of coal in Alabama to generate electricity was in 2015 half of what it had been in 2007.


Key points in the study include:


  • Consumption of steam coal used for electricity generation fell 29% from its peak of 1,045 million short tons (MMst) in 2007 to an estimated 739 MMst in 2015. Consumption fell in nearly every state, rising only in Nebraska and Alaska over that period.

 

  • States with the largest declines were concentrated in the Midwest and Southeast. Six states (Alabama, Georgia, Indiana, North Carolina, Ohio, and Pennsylvania) accounted for nearly half of the national decline.

 

  • Increased supply of natural gas and a resulting natural gas price decline spurred increases in natural gas-fired power generation in several states, generally at the expense of coal-fired generation. Electricity generation from wind and solar sources also increased significantly over this period, driven by a combination of federal tax credits, state-level mandates, and technology improvements.

 

  • In the Southeast, coal consumption in Georgia, North Carolina, and Alabama in 2015 was half the level it was in 2007. Electric power plants in these states increased their natural gas consumption from 338 billion cubic feet (Bcf) to 1,021 Bcf, and they reduced their coal consumption from 110 MMst to 56 MMst.

 

  • The decline in power sector coal consumption across these states was often accompanied by shifts in coal supply sources. In both Georgia and North Carolina, the largest decline in coal receipts came from Central Appalachian coal, which was partially offset by higher receipts of Illinois Basin coal. Alabama's imports of coal (mostly from Colombia) dropped over this period.