Coal Prices Hit Decade High Despite Efforts to Wean the World Off Carbon – by Joe Wallace (Wall Street Journal – June 25, 2021)

https://www.wsj.com/

Coal prices have climbed to their highest level in a decade, making the fuel a hot commodity in a year when governments are pledging reductions in carbon emissions.

A shortfall of natural gas, rebounding electricity usage and scanty rainfall in China have lifted demand for thermal coal. Supplies have been crimped by a closed mine in Colombia, flooding in Indonesia and Australia and distorted trade flows caused by a Chinese ban on Australian coal.

Prices for thermal coal—which power plants burn to boil water into steam, spin turbines and generate electricity—have more than doubled over the past year as a result.

Coal delivered into northwest Europe earlier this month hit its highest price since November 2011, having climbed 64% in 2021. Prices for coal exported from Newcastle in Australia, most of which heads to Asia, have risen 56%, according to Argus Media.

For the rest of this article: https://www.wsj.com/articles/thermal-coal-prices-hit-decade-high-amid-gas-shortage-11624620773

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