You know the world is thirsty for energy, and developed nations are piling into building new natural gas power plants and spurring a nuclear renaissance. But coal is also in high demand as natural gas shipments are stuck in the Persian Gulf. So some countries are switching from gas to coal, and using a lot of it. Bloomberg’s Eddie Spence reports:
That comes as coal consumption is set to hit a record this year as demand is bolstered by higher gas prices — due to the near-closure of the Strait of Hormuz — and a strong El Niño that’s increasing air-conditioning requirements, according to the International Energy Agency.
Coal futures prices in Australia, close to many of the major coal end markets,
are high and trending higher.
The world is demanding more power. But artificial intelligence data centers are only part of the story. Will Mathis explains this year’s high coal consumption, writing for Bloomberg:
Coal consumption is set to hit a record this year as demand is bolstered by higher natural gas prices and a strong El Nino that’s increasing air-conditioning requirements, according to the International Energy Agency.
The figures deal a fresh blow to efforts to rein in one of the key drivers of climate change. And with the outlook for liquefied natural gas flows through the Strait of Hormuz still uncertain, demand for coal could rise even further next year, the IEA said in a report on Thursday.
Action Line: Think about hardening your own energy supply chain by putting some power away in the pantry. Click here to subscribe to my free monthly Survive & Thrive letter.
