U.S. Coal-Fired Power Revs Up Maintenance as Demand Surges
Attachment: UScoalMaint-3Q22
June 16, 2022--Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. power-generation companies that use coal as a resource are enjoying a demand surge. A massive energy crunch is sending prices for natural gas--coal's biggest competitor--to unforeseen highs. Nonetheless, power generators acknowledge coal's long-term prospects as an energy feedstock face a likely insurmountable structural disadvantage. At least for the near term, they will need to keep their coal-based facilities in the best possible shape to handle rising demand.
Despite aggressive decarbonization efforts from federal, state and corporate authorities, U.S. coal production is expected to increase 3.9% this year and another 2.1% in 2023. Energy-related emissions of carbon dioxide (CO2) are forecast to increase 1.3% this year, though that should reverse by next year, according to the U.S. Energy Information Administration (EIA).
Industrial Info is tracking about 40 maintenance-related projects at U.S. coal-fired power plants that are set to begin in the second half of 2022. Leading power-generation companies such as Xcel Energy Incorporated (NASDAQ:XEL), Duke Energy Corporation (NYSE:DUK) and American Electric Power Company Incorporated (NASDAQ:AEP) (AEP) plan to continue closing their coal-fired facilities in the coming years, but are preparing to maintain their remaining plants to address the current spike in coal-energy demand.
