Coal is critical to the energy transition

In past issues, I have dedicated a lot of time, thought and eventually ink in this space to the importance of critical minerals to society. Everyone involved in mining is likely aware of the ongoing energy transition and how it continues to shape the future of the mining industry. On page 24 of this issue, Denise Johnson, Caterpillar Resource Industries’ group president and chair of the upcoming MINExpo International, nailed it on the head when she said, “Without a doubt, the world needs more mined minerals. When you think about the energy transition and the need for batteries, data centers, AI, electric vehicles, etc. … all of that drives additional need for mined materials.”And that includes coal. The role of energy metals in the much-talked-about energy transition has been reported on extensively here and elsewhere, but what has been lost in some of this reporting is the role that fossil fuels — namely, coal — continues to play. At the Bluefield Coal Symposium in Princeton, WV in August, the challenges and opportunities were discussed at length. Although coal has often been vilified as the “world’s dirtiest” fuel source, and many have claimed that the domestic coal mining industry is on its last legs, the speakers and attendees at the symposium had a different story to tell. It is a story of immense pride to be part of an industry that built America and other modern societies, and one that continues to lift millions of people out of poverty around the world. They also told the story of a commodity that is just as critical to the health of the world as any of the metals that power electric vehicles and smartphones. Many SME members heard Jimmy Brock, chief executive officer of Consol Energy, talk about his company’s Not So Fast campaign at the MINEXCHANGE 2024 SME Annual Conference & Expo in Phoenix in February. At the Bluefield Coal Symposium, he continued to talk about his concerns that the energy transition is moving too quickly. At the heart of the Not So Fast campaign is the belief that traditional power sources such as coal-fired plants should not be retired until another power source is online, not when they are simply proposed. “This country needs an orderly and realistic transition plan that includes not just an all-of-the-above energy mix, but all that works,” said Brock. “This transition will take decades, not years, and it will always require the use of fossil fuels, including coal. We are advocating for a more analytical, measured and moral approach to our nation’s energy policies.” Brock and other speakers acknowledged the harsh realities of the domestic coal market while also pointing out that in 2023 global consumption hit an all-time high of more than 8.5 billion tons consumed. Coal does and will continue to be relevant in the United States and abroad. How can it not be when the International Energy Agency predicts global electricity demand will grow by around 4 percent in 2024, up from 2.5 percent in 2023. This would represent the highest annual growth rate since 2007, excluding the exceptional rebounds seen in the wake of the global financial crisis and the COVID-19 pandemic. Brock noted that at the end of 2012, the United States consumed 300,000 MW of energy produced from coal-fired plants. At the end of 2023, 180,000 MW were consumed with 140,000 MW planned retirements. “With the increasing demand from AI and data centers, I can see a patch where we are in serious trouble,” he said. SME Executive Director Dave Kanagy moderated the closing session of the symposium and asked Brock along with Michelle Bloodworth, president and chief executive officer of America’s Power; Chris Hamilton, president and chief executive officer of West Virginia Coal Association; Ernie Thrasher, chief executive officer of Xcoal Energy & Resources; and Michelle Manook, chief executive of FutureCoal if they thought that an energy crisis that led to rolling blackouts would bring attention to the importance of coal to the general public. “An event like a blackout is a little like shock therapy,” said Manook. “The key is the people. In South Africa, for example, their lives and livelihoods are affected by the lack of consistent power, and it can’t be ignored any longer. And that is what is happening in parts of Europe now. In South Africa, they have adapted to the rolling blackouts, and they can’t move forward. The blackout … that shock effect that comes from it is not enough; what really affects change is how does it impact my life on a daily basis?”The promise of a carbon-free energy future sounds wonderful, but until the renewable energy sources prove to be able to provide more than intermittent power, the threat of energy blackouts during peak energy times, such as the hottest days of summer or the coldest days of winter, becomes very real. And those blackouts can have very real and very dire consequences. Coal might not be the popular choice, but it is critical.

Coal is critical to the energy transition

Authored by: William Gleason

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