Coal's role in electrical power generation: Will it remain competitive?

Coal is the most abundant worldwide fossil fuel. In the US, coal represents 95% of fossil energy reserves. The US coal resources represent more energy than either proven oil or natural gas reserves and can be expected to last more than 250 years at current consumption rates. Coal fired power plants currently produce 56% of electrical generation in the US and 36% worldwide, and forecasts show coal use to increase. Impressive statistics such as these, along with the direct correlation between electrical growth and GDP should indicate that coal has a bright future. There are some clouds on the horizon, however, that could dim this seemingly rosy picture. Potentially, the greatest challenge to coal's future is CO2 emission restrictions to address global climate change. Realistically, coal has to be a part of the generation mix of developing nations, particularly those with abundant coal resources such as China and India. If electrification of these countries and corresponding economic growth is to take place, there are not presently a lot of cost effective alternatives. This paper presents a discussion of what the coal industry is doing to remain competitive. It looks at environmental and competitive issues facing coal use