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Coal makes global comeback via Asia
Ironically, moves in the West to reduce its reliance on coal because of environmental concerns is fueling the Asian coal boom.
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A bulk freighter carrying coal cruises on the Musi River in Palembang, South Sumatra. (Antara/Nova Wahyudi)
O
n a recent trip to West Sumatra, I had the opportunity to visit picturesque Sawahlunto, a small town nestled in Bukit Barisan. In its heyday, Sawahlunto was a prosperous coal-mining town after the Dutch discovered 200 million tons of coal deposits in the area in 1858. Yet, Sawahlunto’s fortunes waned as coal reserves were depleted and the town went through a period of decline, with many of its young and talented leaving for better opportunities elsewhere.
Sawahlunto has regenerated by offering community-based tourist experiences, exploiting valuable commodities that can be more sustainable than coal for the small town: the warmth and hospitality of its people, scenic surroundings and a rich history embodied in well-preserved colonial architecture and disused coal mines. The railway and coal museums stand as relics to remind Sawahlunto of its more prosperous past.
Despite this charming and somewhat nostalgic anecdote, however, the “black pearl” is making a comeback globally, with the International Energy Agency (IEA) reporting that global production rose 3 percent in 2017 to 7.55 billion tons, while BP forecast that coal consumption in 2040 would remain unchanged compared to 2016. Ironically, moves in the West to reduce its reliance on coal because of environmental concerns is fueling the Asian coal boom.
Asia, which accounts for 74.5 percent of global coal consumption, is indeed the region to watch for the global coal industry in 2019. The IEA forecasts that by 2040, coal will comprise 40 percent of the region’s energy mix and be a vital component for supporting economic and population growth, while the World Coal Association forecasts that Asia will account for 77 percent of installed coal power plant capacity in 2040, up from 66 percent in 2016.
