World Coal market outlook according to 'World Energy Outlook' magazine 2015 edition.
Created for presentation in MSc Energy Engineering course on coal market.
2. Some Overview
Coal is a combustible sedimentary rock composed mostly of
carbon and hydrocarbons. Coal is composed primarily of
carbon along with variable quantities of other elements like
hydrogen, sulfur, oxygen, and nitrogen.
Coals are formed when dead plant matter is converted into
peat, which in turn is converted into lignite, then Bituminous
coal and finally anthracite. This involves biological and
geological processes that take place over a long period of
time.
Coal Produces 62% of world’s electricity. Most abundant fossil
fuel and could easily last at least 200 years.
3. Advantage of Coal
• Coal is one of the most abundant sources of
energy, more so than oil and natural gas.
• Coal is a relatively cheap energy source.
• Coal can be easily transported to the power
stations.
• Coal can be safely stored and can be drawn
upon to create energy in time of emergency.
4. Disadvantages of Coal
• To dig up coal, we have to create mines which can be
dangerous and cause environmental pollution.
• Coal energy is producing tremendous amount of carbon
emissions that results in climate change and global warming.
• Coal burning is considered not environmental friendly due to
the production of harmful by-products like nitrogen, carbon
dioxide and sulfur dioxide.
• Transporting coal by lorry and train from the mine to
the power station causes pollution.
• Coal is a non-renewable source and will run out in
about 300 years.
• Coal miners can be affected by black lung disease and
emphysema if they breathe coal dust.
6. Coal Reserve (2012)
• USA- About 25% of the world’s total coal reserve
is in this country.
• Russia- 18% of the of world’s total reserve.
• China- about 13% of world’s total reserves.
• Australia- 8.9% of world’s total coal deposits.
• India- 7% of world’s total reserve.
Germany, Ukraine, Kazakhstan, Colombia,
Canada
9. Defining the scenarios
There are three core scenarios, which differ
in their assumptions about the evolution of
energy-related government policies:
•The New Policies Scenario;
•The Current Policies Scenario; and
•The 450 Scenario.
The New Policies Scenario is the central
scenario of this Outlook. It includes all policies
announced but yet to be implemented.
10. The Current Policies Scenario takes into
consideration only those policies for which
implementing measures had been formally
adopted.
The 450 Scenario takes a different approach,
adopting a specified outcome – the international
goal to limit the rise in the long-term
average global temperature to two degrees
Celsius (2°C) and illustrating how that might be
achieved.
21. Summary
• In the New Policies Scenario global coal demand to 2040 will grow
by 0.4% per year on average, a marked slowdown compared with
2.4% over the past 25 years. Despite coal losing out to
renewables as the world’s largest source of electricity generation
soon after 2030, it still accounts for 30% of global electricity output
by 2040.
• Chinese net import will decline by over 50% to 2040; as the
world’s largest coal consumer and producer, shifts in China’s
demand have strong repercussions on global coal trade.
• India will become the world’s second-largest coal consumer
and producer in the current decade, as its demand nearly triples
and production grows more than in any other country.
• The key uncertainties affecting the coal markets are developments
in climate and local pollution policies, changes in coal demand
prospects in China and growth of production in India.