Re: Coal

Date: 2017-11-04 10:07 pm (UTC)
From: [personal profile] nojay
The US mines and burns about 780 million tonnes of coal as year (similar to China's per capita coal consumption of about 3 billion tonnes a year) and that amount will probably not decrease significantly in the next ten to twenty years (2018 consumption is on track to be the same as 2017, pretty much). There are about 50,000 coal mining jobs in the US, that number will probably decrease a little over the next twenty years or so.

Coal is mined predominantly in two regions-- Appalachia and the Powder River basin area in the mid-West. Roughly half of the annual output comes from each region but the mid-West does that with only ten thousand workers and heavy automation. Appalachia mostly does mountaintop removal to get at the coal reserves there, more labour intensive and thus more expensive. There are several hundred years of proven coal reserves safe within the borders of the US at that rate of consumption and it's cheap energy, a production cost of ten dollars a tonne at the minehead in South Dakota. That's why coal will not die.

Re: Coal

Date: 2017-11-06 10:59 am (UTC)
danieldwilliam: (Default)
From: [personal profile] danieldwilliam
Yeah, I don't think anyone is going to be in much of a rush to close any existing coal plants over the next ten years.

I don't see many new ones opening. I think the best the US coal mining industry can expect is roughly speaking a steady state coupled with persisent pressure on labour efficiency coupled with opportunities to automate processes using robots.

My personal expectation is that in about ten years time the combination of solar PV, CCGT and fracking and battery storage is going to make life economically difficult for existing coal generators leading to a steady decline in US demand for coal.

But the best case for US coal jobs is that there will probably be fewer of them in 2027 than there are 2017.

And there are real risk of being on the wrong side of a very rapid shift in the economics of electricity generation.

If one is 50 and already working in coal getting extra training in coal extraction might make sense. If you are 21 and not already a coal miner - well I would advice any son of mine to train up in something else.

Re: Coal

Date: 2017-11-06 11:20 am (UTC)
danieldwilliam: (Default)
From: [personal profile] danieldwilliam
I should rephrase my statement.

If you have an old coal plant you are probably scheduling retirement. You are probably not about to spend lots and lots of money on upgrading it or prolonging its life. You are probably not going to replace it with a new coal plant on the same site.

If you own a middle aged coal plant you are probably indicating that you will retire it in 203X or 204X. You are unlikely to close it early because of renewables but you are probably going to run down the asset and save on Opex whereever you can.

If you own a youngish coal plant you will probably run it for the foreseable future. You are probably worried. Or your bankers are probably worried.

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