The New York Times reported that coal’s low cost compared to more environmentally-friendly options like wind and solar power is keeping it in demand in places like India, China and Europe. That means coal companies will be on the hunt for new reserves in locations such as Botswana, Mozambique and Mongolia.
As quoted in the market news:
Global demand for coal is expected to grow to 8.9 billion tons by 2016 from 7.9 billion tons this year, with the bulk of new demand — about 700 million tons — coming from China, according to a Peabody Energy study. China is expected to add 240 gigawatts, the equivalent of adding about 160 new coal-fired plants to the 620 operating now, within four years. During that period, India will add an additional 70 gigawatts through more than 46 plants.
“If you poke your head outside of the U.S., coal-fired plants are being built left and right,” said William L. Burns, an energy analyst with Johnson Rice in New Orleans. “Coal is still the cheapest fuel source.”