Market Trends of Australia Coal Industry
Demand for Bituminous Coal to Drive the Market
- Coal production in Australia reached 12.43 exajoules in 2021, positioning it at number six in the world. The country exported about 28.8% of its coal in 2021, and it also exported 9.63 exajoules.
- Australian terminology for bituminous coal is black coal. Bituminous coals are largely used for power generation and to produce coke, which is mainly used in the production of iron and steel. Bituminous coal is also used in other metallurgical applications, including cement manufacturing, alumina refineries, paper manufacturing, and a range of industrial applications.
- In 2021, the production of bituminous coal in Australia was 246,127 short tons. Production of bituminous coal in Australia increased from 113,450 thousand short tons in 1999 to 246,127 thousand short tons in 2021, growing at an average annual rate of 4.48%.
- Black coal resources occur in New South Wales, Queensland, South Australia, Tasmania, and Western Australia, but New South Wales and Queensland have the largest share of Australia's total identified resources. These two states are also the largest coal producers.
- Hence, with abundant bituminous coal reserves and the highest production and exports, demand for bituminous coal is likely to drive the Australian coal market over the forecast period.
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Demand from Power Generation Industry to Drive the Market
- Growth in power generation is expected to drive the coal market in Australia. This is mainly due to the increased demand for electricity and the increased use of coal in power generation in the country.
- As of 2021, electricity production rose to 267.5 TWh from 265.2 TWh in 2020, with a growth rate of 0.9%. Thus, the rise in demand for power generation is expected to boost the market for coal in the country since coal is the primary energy source.
- Coal remains the major energy source for electricity production in the country, and coal power generation accounted for about 64% of the total electricity produced in the country in 2021. Australia's electricity generation from coal was 137.4 TWh in 2021.
- Australia has 73,719 million metric tons of anthracite and bituminous coal in its reserves. Hence, coal power generation is expected to drive the market during the forecast period.
