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Global Coal Consumption Still at a Record High

 

 

October 2, 2024 - Outside the UK, the matter is far from settled. On Monday, September 30, the British government was about to close its last remaining coal-fired power station, but no other G7 country could say the same. Still, around the world, despite its damage to the climate, the use of the most harmful of fossil fuels (ahead of oil and gas) is still in full swing. Particularly in so-called "developing" countries.


Coal consumption is running at record levels, with 2024 similar to the previous year: around 8.7 billion tonnes, according to the International Energy Agency's (IEA) forecast for the year as a whole. This represents a "total increase of 10%" on 2014 figures, which were below 8 billion tonnes, said IEA analyst Carlos Fernandez Alvarez.


Most of this energy is fueling power plants. Thermal coal remains the main source of primary energy for electricity generation. However, its relative share is declining (35% in 2024, compared with 41% in 2014), as renewable energies such as solar and wind power begin to gain ground. In absolute terms, it "will remain at similar levels for another two or three years, before declining," estimated Jenny Yang, analyst for the British thank-tank S&P Global Commodity Insights – not without optimism.


To a lesser extent, there is also a demand for "metallurgical" coal. This meets the needs of certain industrial processes, particularly in the steel industry, for steel production.


All things considered, the world's two most populous countries also happen to be the two biggest producers and consumers of coal. It may seem paradoxical, but both China and India still rely heavily on this fuel... while at the same time outdoing one another in installing photovoltaic panels and wind turbine masts.


The Chinese economy alone accounts for more than half of global demand (around 56% in 2023, according to IEA figures). This is even more than India (15%), the US (4%) and some European Union countries (also 4%), starting with Poland and Germany.


To meet demand, supply is also continuing to expand. In 2023 as a whole, three times more coal-fired power generation capacity was commissioned than closed down. That's 69.5 gigawatts (GW) more, compared with 21.1 GW less, according to the US-based NGO, Global Energy Monitor. Globally, the total coal-powered generation in operation is now close to 2,130 GW.