What role does coal play in today's world?
Firstly, it is important to understand that coal is still part of many countries' energy mix, and according to the IEA's full cast in world energy, it is still contributing to 36% of dependable world power generation. Aluminum, for example, relies heavily on coal due to its energy intensive production processes; and, moving forward, even our renewables agenda is dependent on coal for wind turbines and solar panels. Looking at the 2050 forecast, this resource will make for up to a quarter of the pie that represents the total energy sources. There is enormous benefit to considering coal part of the mix, and, at WCA, we definitely support the abatement of coal in combustion. Japan, along with China, runs one of the most efficient coal fleets in the world, and having worked in the resources sector for many years, I am surprised by the lack of understanding in the general media in regards to the available technologies that are really important to efficiency.
What is the reason behind the bad press mining, and coal especially, has been receiving?
This distorted public image might be caused by the discrepancy between the coal producing nations, which can be either developed countries or emerging economies. As a result, the actual coal value chain is quite disaggregated, from start to end. The power providers are not connected to the upstream, and seaborne trade is not done through direct contract, but through third parties, resulting in a lack of connection to the downstream. All these elements working almost in opposition, as opposed to unison, translate into a domino effect where it is important to communicate the opportunity for coal to be abated across the whole value chain.
We are entirely confident that there are ways for the coal industry to contribute to more responsible mining practices, and lowering emissions through electric haulage trucks, wind and solar power, and digitized operations. All these applications can make coal a much more palatable resource in the eyes of the wider public, and it is important to underline these advantages not only to stakeholders, but to the entire supply chain.
As an industry, we have not really come to terms with the fact that we are interconnected but, today, WCA is enjoying a membership base from across the value chain, including technology companies and consumers like cement, aluminum, steel or power producers.
How can WCA highlight the positive aspects of coal in such a polarized society?
We have devised an internal Abated Coal Stewardship program meant to address the challenges in finding government policy and investment policy that is agnostic and actually understands there is a place for coal in the future to come. With the right technology and processes that can make it an efficient, sustainable and responsible operation, coal can, and will, play a central role in the green transition. But in order for this to happen, we must better communicate all the opportunities that are to be found in this particular space.
How successful have been the efforts to extract rare minerals from coal byproducts and waste?
The processes and the technologies are known and proven, but the issue goes back to the policy environment which must see coal as a strategic resource and embrace its very nature. These steps are vital for the reassurance of the companies in this space since they can be playing out as a guarantee for their future investment commitments needed to move the business forward. As we have seen during the energy crisis, when we are tested on energy security and affordability, we are compelled to work through all the available solutions. Consequently, there are parties interested in extracting rare minerals from coal, but for this process to go forward, we must build the right mindset that can allow for developments to happen.
