Can transitioning to clean energy vastly impact Australian coal sector?
Team Veye | 18-Aug-2022
Coal has been a pillar of Australian industry and remains Australia’s second largest export. Strong coal prices reflect the value global demand puts for its high quality thermal and metallurgical coal. It is a $39-billion-a-year export industry.
However, the climate change movement globally has been championing the acceleration to eliminate the use of thermal coal. The crucial question at this time is whether this can largely affect the Australian coal industry and its contribution to Australian economy.
Currently coal supply aids in more than two-thirds of Australia’s electricity needs. But the clean energy era is slowly pushing in. The Australian Energy Market Operator (AEMO) has declared the transition to be the fastest of anywhere in the world.
Ramifications of more wind and solar farms can be directly felt by the coal sector. However, there is a silver lining too. Coal consumption throughout Asia is forecast by the International Energy Agency to grow over the next decade to meet the energy demands of countries like China, India and South Korea. China is also reported to be revisiting the energy outlook on concerns of supply disruptions due to Russia crisis.
Australian coal is known for its high-energy, low ash characteristics ideally matching the requirements for modern, high efficiency coal-fired power plants being built throughout Asia.
Australia’s high grade metallurgical coals are amongst the best in the world for modern steel making. Australian coal can also reduce emissions when compared to lower-quality coal from other suppliers.
Australian Coal has a strong future which can meet the requirements of its modern economy. It will remain an important contributor to the Australian economy well beyond 2030 as global demand continues to grow.
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