CCC/220 ISBN 978-92-9029-540-2
July 2013
copyright © IEA Clean Coal Centre
Abstract
Global consumption of commercial energy totalled 18 Gt of coal equivalent in 2010. With a 28%
share, coal ranked second after oil as one of the major sources of primary energy and natural gas (at
21%) ranked third. Gross power generation with coal was approximately 41% and gas 22%. Natural
gas as a global commodity is growing rapidly with the advent of unconventional sources such as shale
gas. Recently, gas has become the fuel of choice for new power generating plants in some countries.
Overall production of coal has increased in the same time-frame. The share of coal in electricity
production was constant in Europe from early 2000 but recently increased. This was due to the high
cost of gas in Europe and a low emissions penalty levied by the regulator, making coal currently more
competitive in Europe compared to gas. Coal utilisation continues to increase in Asia but is facing
serious competition with gas in the USA, where the share of electricity generated with coal dropped in
2012. However, natural gas used to generate electricity in early 2013 was below the high level seen
during the comparable 2012 period, when low natural gas prices led to significant displacement of
coal by natural gas for power generation. The current consensus in the USA is that while coal may
recover ground in the short term, it loses in the long term as coal plants are retired. The discovery,
production and availability of significant amounts of gas have implications for not only the price of
natural gas but also the price of coal as well as supply and demand, and utilisation of both fuels
internationally. The interaction between coal and gas in the global markets today is investigated in this
review and the near-term outlook and impact on both fuels is presented. In this report, reserves,
production and trade, supply and demand, pricing, utilisation and consumption, public attitudes and
finally near/short to medium-term prospects are discussed for both coal and gas.
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