While climate activists, lawmakers and experts discussed the need to reduce pollutants and transition to cleaner energy sources this week, fossil fuel advocates doubled down on the industry's carbon emissions, telling companies to stop the "fossil fuel apology tour."
Speakers told state-level U.S. lawmakers at the Southern States Energy Board's meeting in Kentucky this week that more carbon dioxide in the air is beneficial, despite widespread scientific evidence that emissions are contributing to global warming.
"CO2 is the elixir of life. The world needs more of it, not less, and fossil fuel companies should stop apologizing and embracing demands for emissions reductions," said Cal Beisner, founder and national spokesman for the Cornwall Alliance for the Stewardship of Creation. "It never ceases to amaze me that fossil fuel companies and industries that use lots of fossil fuels post about reducing CO2 emissions. That just means pleading guilty and then begging for delayed execution. You should be posting all the benefits for nature and mankind."
Speakers at the meeting also noted that the nation's swift energy transition is negatively affecting coal communities disproportionately, especially in parts of Kentucky. Federal Energy Regulatory Commission Chairman Neil Chatterjee touted his planned summit in the commonwealth next month that will connect decision-makers and provide an opportunity to discuss how the transition is leaving portions of coal states behind.
"I want folks engaged in the national energy dialogue and making decisions to hear from Kentuckians about what we're facing here," Chatterjee said. "I think it's important for folks to understand the challenges that the energy transition is posing in certain parts of the country. The benefits aren't being felt equally."
Though coal demand in the U.S. is expected to continue to decline in the years to come, a report from Wood Mackenzie this week said Southeast Asia's strong demand will likely continue over the next two decades as the fuel remains dominant in the region. Coal's contribution to Southeast Asia's energy mix will peak in 2027 before slowing and accounting for about 36% of power generation by 2040, according to the report. Its use will eventually decrease as the cost of renewable energy sources declines and environmental pressures increase.
"However, the reality of rising power demand and affordability issues in the region mean that we will only start to see coal's declining power post 2030," said Jacqueline Tao, a research associate with Wood Mackenzie.
But while this growth will likely provide export opportunities for producers around the world, analysts told S&P Global Market Intelligence that U.S. thermal coal miners may struggle to compete in the Asian market in the near future. Other major coal-producing nations, such as Australia and Russia, benefit from their proximity to those markets, which may limit opportunities for U.S. producers, they said.
Benjamin Nelson, senior credit officer and lead coal analyst at Moody's, said he does not expect U.S. producers to be squeezed out of the region soon, but noted that "it becomes increasingly difficult as the U.S. coal industry becomes more dependent one way or another on Asia."
On the federal level, a bankruptcy court approved Cambrian Coal Corp.'s plan to sell off substantially all of its assets a few months after filing for bankruptcy protection. American Resources Corp. will acquire its Perry County Coal assets and Pristine Clean Energy LLC will acquire its Premier Elkhorn assets. A joint venture made up of Richmond Hill Capital Partners LLC, Essex Equity Joint Investment Vehicle LLC and Alliance Prime Associates will take over the remaining rights and assets.
Upcoming events
North American Export Coal and Gas Summit: The event will take place Oct. 2-4 in San Francisco.
2019 Coal Conference Canada: The Coal Association of Canada will hold a conference Oct. 8-10 in Vancouver.
Coaltrans: The World Coal Leaders Network conference will take place Oct. 20-22 in Lisbon.
Mining conference: The Future of Mining Americas conference will run from Oct. 21-22 in Denver.
MetCoke World Summit: The summit will be held from Nov. 5-7 in Nashville.
