Commodities
US Coal Missing Export Opportunities Over Red Tape, Logistics, Says DOE Advisory Committee
The US has abundant coal resources and an opportunity to increase its presence in the seaborne trade of the solid fuel, but this first depends on removing administrative barriers and investing in logistics, the National Coal Council, the advisory committee to the US Department of Energy, said on Tuesday.Coal is one of the most carbon-intensive fuels available, emitting twice as much carbon dioxide as natural gas to produce the same amount of energy, and policymakers have been working to phase out its use in many parts of the world by replacing it with renewables.The Iran War has slowed that trend, however, with some Asian countries, deprived of natural gas cargoes by the closure of the Strait of Hormuz, turning to coal to produce power, where they have the facilities.The US National Coal Council's Outlook and Opportunities for US Coal Exports, addressed in the preface to Energy Secretary Chris Wright, sets out what the industry sees as necessary work and investment to claim a larger share of the global coal market.Top of the list is a need for a high-capacity West Coast export terminal that can handle volumes matching Western US coal export potential. That alone could help provide access to what the cuncil describes as "fastgrowing Asian markets".The council said it welcomes support from President Donald Trump, whose intent to revive coal was a feature in his election campaign for his first term, for additional West Coast export terminals including one proposed for Oakland.This would help level the playing field in terms of logistical costs to supply Asia, versus currently more-competitive Australia, Indonesia and Russia.There would also be a requirement for upgrades to waterways, locks and channel capacity, the council said. It called for the government to "streamline permitting processes that currently delay or hinder critical mining and infrastructure investments."The council also calls for sweeping changes on an administrative level, including a review of federal and state tax and fee structures throughout the supply chain to reduce costs and foster more private investment.It also advocated making coal a feature of bi-lateral trade agreements, much like the US has done with soybeans in trade deals with China."The U.S. is well positioned to meet new demand, if certain policy changes are made and logistical challenges addressed," the report said.The report considers the potential for exports to a number of different markets. In a section regarding potential shipments to the European Union, it says that a 2025 EU agreement to purchase $750 billion of US energy products was largely gas focused.The council said that agreements "with an explicit coal focus" have the potential to grow US exports.At the same time it acknowledges a growing number of regulatory hurdles to coal demand in the EU including limits on methane intensity and payments to offset coal's carbon intensity, that reduce its competitiveness versus other energy sources.
