Coal news and updates

US utility coal consumption likely to slip in 2015: EIA

The US Energy Information Administration projected a 1.2% increase in utility coal consumption through the end of 2014 in a report released Tuesday, but 2015 could see a drop in demand.

Power sector coal consumption is projected to fall by 0.4% next year to 864.7 million st as more power plants are retired due to the implementation of the Mercury and Air Toxics Stands and as electricity and natural gas prices fall, according to the EIA's monthly Short-Term Energy Outlook.

In 2013, an estimated 5,700 MW of coal capacity were retired in the US, according to the EIA. Through September 2014, the industry shut an additional 2,265 MW of coal capacity and another 895 MW are planned through the end of the year.

In 2015, more than 12,800 MW of capacity is expected to be shut down, according to the EIA.

While rising natural gas prices earlier in the year helped increase coal's share of total generation from 39.1% in 2013 to 39.4% through September 2014, that number is expected to drop to 38.9% in 2015, according to the EIA. US coal production is projected to increase from 984 million st in 2013 to 996 million st through the end of 2014, but drop slightly to 995.3 million st in 2015, according to the report.

Coal exports also are projected to decline 18.3% to 96 million st in 2014 from 118 million st in 2013 due to slowing world coal demand growth, lower international coal prices and increased competition. EIA projects coal exports will fall to 83 million st in 2015, the lowest amount since 2010.

Source: Platts