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Released March 16, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--According to the U.S. Energy Information Administration (EIA), U.S. coal exports increased 23% in 2021 compared with 2020. In 2021, the amount of domestic coal production that was exported rose to 15%.
Joseph Govreau, Industrial Info's vice president of research for the Metals & Minerals Industry, expects U.S. coal exports in 2022 to remain high, "especially now with the war in Ukraine and Western sanctions on Russia, adding, "Coal prices have surged and European consumers are searching for alternatives to Russian coal."
Although the retirement of coal-fired power plants is not expected to change, coal is experiencing a short-term renaissance: high natural gas costs have power plant owners in the U.S. and Europe switching to thermal coal for economic reasons, and strong demand for steel in the U.S. and China has increased demand for metallurgical coal. For more information, see February 8, 2022, article - Coal Enjoys Unexpected Resurgence in Energy Transition and March 16, 2022, article - China Plans to Add 300 Million Tons of Coal Production Capacity.
Thermal coal exports increased by 47% in 2021 to 40 million short tons (MMst), and metallurgical coal exports increased 8% to 45 MMst. The top five export destinations were India, China, Japan, the Netherlands and South Korea--led by India with 15.3 million MMst. China imported 13 MMst, 91% of which was metallurgical coal. The Netherlands, also a top importer of U.S. coal, is a transshipment hub to ship coal throughout Europe, according to the EIA.
The EIA notes that a trade dispute between Australia and China, which began in late 2020, resulted in China banning coal imports from Australia. This increased demand for metallurgical coal from the U.S. and other suppliers; metallurgical coal represented about 90% of China's imports of U.S. coal in 2021.
The agency's January Short-Term Energy Outlook noted U.S. coal production reached 579 MMst in 2021, up 8% from 2020. Overall U.S. coal production is expected to grow 33 MMst this year and another 8 MMst in 2023.
Industrial Info is tracking almost $5 billion worth of active coal-production projects in the U.S. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a full list of detailed project reports.
Among the projects is Century Mining LLC's (Bridgeport, West Virginia) $450 million grassroot coal mine near Volga, West Virginia. Construction on the underground, longwall mine began in late 2020 and is expected to wrap up in mid-2023. At full operations, the mine will produce approximately 4 million tons per year and will include rail loadout facilities and a prep plant. Subscribers can click here for the project report.
CONSOL Energy Incorporated (NYSE:CEIX) (Canonsburg, Pennsylvania) is at work on a $90 million brownfield underground coal mine in Itmann, West Virginia. The 900,000 ton-per-year mine is designed to produce metallurgical coal for 20 years. Completion is expected in November. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: LinkedIn.
Joseph Govreau, Industrial Info's vice president of research for the Metals & Minerals Industry, expects U.S. coal exports in 2022 to remain high, "especially now with the war in Ukraine and Western sanctions on Russia, adding, "Coal prices have surged and European consumers are searching for alternatives to Russian coal."
Although the retirement of coal-fired power plants is not expected to change, coal is experiencing a short-term renaissance: high natural gas costs have power plant owners in the U.S. and Europe switching to thermal coal for economic reasons, and strong demand for steel in the U.S. and China has increased demand for metallurgical coal. For more information, see February 8, 2022, article - Coal Enjoys Unexpected Resurgence in Energy Transition and March 16, 2022, article - China Plans to Add 300 Million Tons of Coal Production Capacity.
Thermal coal exports increased by 47% in 2021 to 40 million short tons (MMst), and metallurgical coal exports increased 8% to 45 MMst. The top five export destinations were India, China, Japan, the Netherlands and South Korea--led by India with 15.3 million MMst. China imported 13 MMst, 91% of which was metallurgical coal. The Netherlands, also a top importer of U.S. coal, is a transshipment hub to ship coal throughout Europe, according to the EIA.
The EIA notes that a trade dispute between Australia and China, which began in late 2020, resulted in China banning coal imports from Australia. This increased demand for metallurgical coal from the U.S. and other suppliers; metallurgical coal represented about 90% of China's imports of U.S. coal in 2021.
The agency's January Short-Term Energy Outlook noted U.S. coal production reached 579 MMst in 2021, up 8% from 2020. Overall U.S. coal production is expected to grow 33 MMst this year and another 8 MMst in 2023.
Industrial Info is tracking almost $5 billion worth of active coal-production projects in the U.S. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a full list of detailed project reports.
Among the projects is Century Mining LLC's (Bridgeport, West Virginia) $450 million grassroot coal mine near Volga, West Virginia. Construction on the underground, longwall mine began in late 2020 and is expected to wrap up in mid-2023. At full operations, the mine will produce approximately 4 million tons per year and will include rail loadout facilities and a prep plant. Subscribers can click here for the project report.
CONSOL Energy Incorporated (NYSE:CEIX) (Canonsburg, Pennsylvania) is at work on a $90 million brownfield underground coal mine in Itmann, West Virginia. The 900,000 ton-per-year mine is designed to produce metallurgical coal for 20 years. Completion is expected in November. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: LinkedIn.
