While easy supply and affordability remain a key factor for the use of Thermal Coal for power generation, there are several other factors that have seen a resurgence in the use of Thermal Coal. It is also a very versatile fuel which is used in diverse applications that extend beyond power plants.

Let’s explore what makes Thermal Coal popular today:

Global Rebound: As economies across the world recover from the Covid-19 pandemic, there’s an increased demand for electricity. Thermal coal is an affordable and easily available fuel which can meet the increased demand without supply disruptions, particularly in the developing countries.

Geopolitical Tensions: In times of uncertainty and heightened geopolitical tensions, Thermal Coal has always been an extremely reliable source of energy. For example, disruption of gas supplies from Russia are currently driving European countries to go back to coal.

 Weather Fluctuations: Climate change is making our weather more extreme, making sources like hydropower and solar less reliable. Droughts affect hydropower output like it did in China in 2023, leading to increased usage of Thermal Coal.

Infrastructure Investment: Many existing power plants use coal as their primary fuel and already have the supporting infrastructure in place. Any change requires huge capital investments like grid upgrades and battery storage which may not always be viable. So a lot of power plants are instead choosing to invest in clean coal technologies which maximise energy production while reducing emissions.

Affordability: Thermal Coal is a relatively cheap energy source compared to renewable energy alternatives and natural gas. This is particularly true for countries with abundant reserves of coal where Thermal Coal also provides energy security during economic downturns.

In conclusion, Thermal Coal usage will continue for the foreseeable future.