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By Frank Clemente and Fred Palmer; Coal is the Cornerstone LLC. June 16, 2025 - Note: Part 1 described the role coal played in China’s historic move forward. Part 2 discusses China’s ongoing buildout of advanced coal plants to meet the energy needs of 1.4 billion people. ………………………………………………………………………………
Coal has propelled China into the modern age as the world’s second-largest economy. In 2000, China’s UN Human Development Index was .58, it is now .80 as 7 out of ten people lifted out of poverty over that period were Chinese. Coal-based electricity rose from about 990 TWh in 2000 to over 6,000 today. Electricity use per capita was about 1,050 kWh, it is now over 6,500-- more than Germany.
China imports about 550 million metric tons of coal per year. These imports, along with its own substantial supply, have provided the energy to make China the world’s leading manufacturer and exporter. In 2000, energy from coal was the primary basis of steel production of 124 million tons. Today, China produces over 1 billion tons of steel-- 54% of global steel production, of which over 90% is produced using coal. China provides 52 % of cement, 97% of which uses coal energy. China produces 80% of the world’s solar panels and coal provides at least 75% of the electricity for their manufacture. The world needs to be mindful of its dependence on China’s use of coal and the benefits that have spread across the globe.
As we noted in Part 1, China’s move to the top hierarchy of global economies would not have been accomplished, and cannot be maintained, without coal. Chinese leaders recognize this reality and are steadily building coal plants to support the electrification of the Nation. While the US still leads, China has made a massive commitment to Artificial Intelligence and its associated data centers. China’s central government is intent upon promoting AI and developing its local infrastructure. In early 2025, the government convened an AI industry symposium, emphasizing the goal of self-reliance on these rapidly emerging technologies.
Data centers are extremely energy-intensive, requiring at least 50 times more electricity per floor space than a typical commercial office building. IEA projects that electricity demand from data centers worldwide is set to more than double by 2030 to around 945 terawatt-hours (TWh), about as much as the total electricity consumption of Japan today. These data centers need 24/7 electricity and wind and solar cannot provide the reliability needed by hyperscalers. Further, there is increasing evidence that the amount of intermittent energy that can be added to an electric grid is limited, (e.g. Spain). Thus, the Chinese are steadily building coal plants to support the electrification of the Nation. With the rise of not only electricity intensive data centers, but also electric vehicles, heat pumps, electrolyzers, air conditioners and cryptocurrency, the overall societal push for electrification is clear in virtually all countries. It is just as clear that China is preparing to be the global leader in energy for the rest of this Century. Coal currently provides over 60% of electricity and China is intent on expanding its coal fleet. Consider these data relating to coal’s role in this Master plan:
In the EIA’s 2025 Annual Energy Outlook, the US answer to China’s powerful baseload foundation by 2040 is: (a) a 98% decline in coal generating capacity from 162 GW to 3 GW , (b) a decline in nuclear capacity of 3 GW, (c) an increase of 444 GW in solar and an increase of 360 GW of wind. As an aside, note that although NG capacity increases in the projection, actual generation is projected to decline from 1,564 billion kWh in 2025 to 1,012 billion kWh in 2040—a 35% drop. Finally, it should be noted that many of the “mega plants” China is building are advanced stations that produce significantly lower emissions. As Clare Richardson of the National Bureau of Asian Research points out: “China is rapidly is deploying ultra-supercritical and supercritical coal technology, which can operate at higher temperatures and pressures to improve thermal efficiency.” The country has also pursued widespread adoption of flue gas desulfurization and selective catalytic reduction systems to cut sulfur dioxide and nitrogen oxide emissions. Consider, for example, Pingshan Phase II in Anhui Province, a cutting-edge 1.35-GW ultra- ……………………………………………………………………………… Note: Coal is the Cornerstone seeks to give a voice to supporters of coal in its many dimensions and contributions. But we need help and ask like-minded individuals and companies supporting coal to make a financial contribution to the effort. Please contact Fred Palmer (vapalmers@aol.com) for details as to how you can support the fight for coal .…………………………………………………………………………… Frank Clemente PhD Is Professor Emeritus at Penn State University. He specializes in research on the socioeconomic impact of energy policy and is the author of The Global Value of Coal, published by the International Energy Agency (2012). Professor Clemente has extensive experience in speaking, writing and presenting data on the value of coal to the United States and the world. All opinions expressed here are presented independently from the University. Fred Palmer Esq. served as CEO of Western Fuels before he joined Peabody Energy as Senior Vice President for Government Affairs. Palmer was Chair of the World Coal Association Board and a member of the National Coal Council. He received the American Institute of Mining, Metallurgical and Petroleum Engineers Award for “Distinguished Achievement in Coal Technology”. He also received a Statement of Appreciation from the National Coal Council in 2015 with a plaque for “Guidance since 1990”.
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