A report predicting gloom and doom for the future of coal is short sighted in its analysis of the long-term global energy outlook. In particular, the Climate Council report targets Queensland’s Galilee Basin in Australia and says that coal demand is dwindling as the world moves toward renewable energy.
Queensland Resources Council Chief Executive Michael Roche said last week the report lacked any depth in its analysis of global coal demand, while turning a blind eye to Queensland being on the cusp of achieving record coal exports in the financial year ending June 2015.
“The independent International Energy Agency does account in its forecasts for the uptake of renewables and gas in its 2014 World Energy Outlook report however forecasts that coal-fired electricity output is still set to rise 33% by 2040,” Roche said.
“China alone added 1,000 MW of coal-fired electricity generation capacity every week last year, so in just eight weeks they added the equivalent of the entire capacity of Queensland’s coal-fired capacity.
“As China moves to roll out more advanced technology in their new coal-fired power plants – and shut down older technology, higher polluting plants – China may in time use fewer tonnes of coal but require more of the high energy, low pollutant coal produced in Queensland.”
Roche pointed out that the Climate Council report did not dispute that India’s use of coal would increase but said that India “may” reduce its coal imports and cease all coal imports “within the next few years”.
“The Climate Council’s prediction on coal imports by India is based on material from The Guardian media outlet, an outlet financially backed by Graeme Wood who publicly admits he is throwing millions into both renewables and the anti-coal activist movement,” Roche said.
“In fact we know India has 300 million people without electricity and that Prime Minister Modi is determined to give those people access to affordable electricity by 2040.
“We also know that no credible forecaster expects India to be able to meet Modi’s target without use of imported coal to supplement domestic supply.”
It is important to remember that from 2017, every new coal fired power station built in India must use super critical technology which requires high quality, high energy coal that India just cannot supply, Roche said.
“Queensland is ready to step up to the plate to satisfy that high quality coal demand from the Galilee Basin and other coal basins in Queensland, including satisfying demand from China, India and other parts of developing Asia which are striving to give their people access to affordable power.
“If these countries cannot source coal from Queensland, they will simply seek it elsewhere, and that coal may not be as high quality, producing a worse outcome for global carbon emissions while denying Queensland thousands of new jobs.
“The claims that coal is a dying energy source are ludicrous and according to the recent BP 2015 Statistical Review of World Energy over the decade to the end of 2014, coal use grew by 968 Mt of oil equivalent – or four times faster than renewables, 2.8 times faster than oil and 50% faster than gas.
“In 2014, if the world had relied on renewable energy like wind, solar and biomass for primary energy, then the world would have had just nine days of heat, light and artificial horsepower.
“The Climate Council report is another in the long line of reports from the well-funded anti-coal brigade, who have made it clear their goal is to shut down the Australian coal industry, and hang the consequences for local jobs and for the energy poor millions in developing Asia.”
