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Home Coal Demand

USA: Coal versus Gas

Editor by Editor
6 months ago
min read1 min
USA: Coal versus Gas
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US coal-fired powergen collapsed by a hefty 30% since the beginning of the year, being squeezed between falling electricity consumption (-5%), rapidly expanding renewables (wind up by 15%) and a practically unbeatable gas.

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Gas-fired power plants increased their output by ~8%, supported by a Henry Hub averaging at $1.8/mmbtu -and reaching a 25-year low in June. this allowed for a coal-to-gas switching close 60 TWh and translating into ~30 MT carbon emission savings.

In total, US power sector-related emissions declined by ~130 MT (roughy equating to the annual emissions of Belgium).

What is your view? Will the demise of coal continue in the US? Or could it still make a comeback once gas prices start to recover? Could we see a switch-back?

Source: Greg Molnar

Connect with Greg on LinkedIn

Tags: coal versus gascoal-fired generationCoal-to-gas switchinghenry hubrenewablesU.S coal
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