Webinar: The Coal Industry’s Influence on Future Energy Balance

Anya:
Hi everyone, I’m Anya. I oversee business development at K-Mine. Before we dive in, I’d like to remind you to check out and follow our LinkedIn page. It’s the easiest way to stay updated on our latest announcements and upcoming webinars. I also want to extend a big thank you to each of you for being here—your support means a lot to us.

Today’s webinar covers coal’s role in the future energy mix, global trends, projections through 2050, and challenges in transitioning to green energy. We’ll also highlight companies adapting to new environmental standards. And joining us today is Eugene, the author of today’s webinar.

Eugene:
Hi Anya, and hi everyone. Friday—a great time for some fresh information! I hope you will enjoy it.

Anya:
I’m sure we will. Eugene will answer your questions at the end of the stream. Let me just start by sharing a bit about K-Mine.

Our journey began in Ukraine in 1994, and by 2024, we had expanded our reach across Europe, Asia, the United States, and Canada. Our team is a diverse group of developers, surveyors, geologists, and mining engineers, with experts qualified in NI 43-101 and JORC reporting standards. We serve a broad range of clients, from small exploration teams to major corporations, always focusing on delivering high-quality and cost-effective solutions.

Our main product is a comprehensive software solution tailored to the mining industry, supporting every phase of a mining project—from exploration to full production. It includes 12 versatile models designed for both open-pit and underground operations. What sets us apart is our software’s flexibility. Whether you’re a small operation or a large corporation, you can select specific models that fit your workflow—or even the full suite. By integrating our software with IoT devices or dispatch systems, you gain real-time monitoring and the ability to make quick, data-driven decisions.

We provide reports that meet NI 43-101, SK 1300, and JORC standards tailored to various project phases, such as profitability studies, feasibility studies, mineral resource estimation, and preliminary economic assessments. Our expertise spans a broad range of hard rock commodities, including essential critical minerals.

Global Energy Trends and Projections

Anya:
The global energy landscape is evolving rapidly, shaped by factors like economic growth, new energy policies, technological advancements, and efforts to tackle climate change. While renewable energy is on the rise, fossil fuels like coal, oil, and natural gas still dominate.

In 2024, fossil fuels account for 81% of global energy consumption, with coal making up roughly 27%. Renewable energy sources are steadily expanding, projected to account for 35% of global power generation by 2025. However, challenges like energy infrastructure and storage continue to slow progress.

Regional Highlights:

• Asia-Pacific: The region is the largest energy consumer, driven by rapid industrialization in India and China. Both countries heavily rely on coal for electricity but are also leaders in renewable energy development.

• North America: Natural gas dominates energy production, while renewable energy sources like wind and solar are rapidly growing.

• Europe: Significant progress has been made in decarbonizing the economy, with renewables making up 41% of electricity production.

• Africa: While coal remains a primary source in South Africa, renewable energy projects are emerging.

• Latin America: Countries like Brazil rely on hydroelectric power, while Argentina depends on natural gas and oil.

The International Energy Agency reports that energy consumption in developing regions like Asia and Africa is increasing, driven by industrial growth and population expansion. Meanwhile, developed countries like the United States and those in the European Union are seeing slower growth due to energy efficiency measures and a shift towards renewables. In these regions, efforts to reduce carbon emissions are accelerating, further reshaping the energy landscape.

Technological Advancements in Coal

Innovations like Carbon Capture and Storage (CCS) and Highly Efficient Low-Emission (HELE) technologies are helping reduce coal’s environmental impact.

• CCS: Captures CO2 from coal-fired power plants for underground storage. Although promising, adoption is slow due to high costs. Current implementations include power plants in China, the United States, and Canada, but they collectively capture less than 0.2% of global CO2 emissions.

• HELE: Improves coal combustion efficiency, reducing emissions. Countries like Japan and China are actively adopting this technology. Ultra-supercritical HELE plants achieve efficiencies of up to 50%, compared to 33% in older plants.

• IoT and AI: These digital innovations are optimizing coal operations, cutting costs, and improving environmental compliance. Automation and real-time monitoring enabled by these technologies are reducing energy waste and emissions in countries like Australia and China.

Another emerging innovation is the integration of hydrogen into coal-fired processes to reduce emissions. This hybrid approach is currently under research in countries like Japan and South Korea, aiming to lower the carbon footprint while maintaining coal’s reliability as an energy source.

Economic Challenges and the Role of Regulation

Anya:
While coal remains a significant energy source, it faces growing economic and regulatory pressures. Many international banks and financial institutions have reduced funding for coal projects, making financing increasingly difficult. Additionally, higher borrowing costs and the introduction of carbon taxes, such as the EU’s carbon tax of €100 per ton of CO2, are creating financial hurdles for coal-dependent companies.

Despite these challenges, coal remains crucial for energy security in developing countries. For instance:

• India: Coal accounts for 70% of electricity generation and provides millions of jobs, making it integral to the country’s economic stability.

• China: As the world’s largest coal consumer, China is implementing CCS and HELE technologies to mitigate environmental impacts while continuing to rely on coal for energy demands.

To adapt, companies like Glencore and Anglo American are diversifying into renewables and investing in technologies to reduce emissions. For example:

• Glencore: Has committed to achieving carbon neutrality by 2050 and is investing in CCS technologies.

• Anglo American: Exited the coal business entirely in 2021 to focus on green technologies and critical minerals for renewable energy infrastructure.

• BHP: Is integrating sustainability measures, including water management and energy-saving technologies, in its Australian coal mines.

Anya:
Let’s bring Eugene back to answer some questions. Eugene, are you here?

Eugene:
Yes, I’m here! Let’s get started.

Question: How do initial investments and operating expenses compare between CCS and HELE technologies?

Eugene:
CCS requires significant initial investment to set up the infrastructure for capturing, transporting, and storing CO2. It also consumes a lot of energy, making it more expensive to operate. On the other hand, HELE focuses on improving coal plants’ efficiency, with cheaper upgrades that lower operational costs in the long run.

Question: Which technology is more scalable for existing coal plants?

Eugene:
HELE is more practical for retrofitting existing plants because it doesn’t require major infrastructure changes. CCS, however, is better suited for new facilities due to its complex infrastructure needs.

Question: Do you think CCS technology will improve to the point of keeping coal plants viable in the long term?

Eugene:
It’s possible. While current CCS projects capture only 50–60% of CO2 emissions, improvements in technology could bring this closer to the expected 90%. Countries like China and India, which heavily rely on coal, may adopt these advancements to balance energy demands with environmental goals.

Anya:
Thank you so much, Eugene, and thanks to everyone for joining us. We hope you found this session insightful. Stay tuned for our next webinar, and have a great weekend!

Eugene:
Thank you, Anya. Have a great weekend, everyone!