Coal
Overview
Global thermal coal prices surged to record levels in 2022, experiencing unprecedented volatility. Prices have since come off as risks associated with Europe’s supply recede. At a global level, coal demand remains robust with security of supply shifting higher up the agenda of many governments in light of geopolitical upheaval.
In Europe, sanctions have shifted the region’s coal import mix away from Russia and towards other suppliers. The pace of coal plant phase-outs in the region is set to increase in the years ahead, with the role of coal in the electricity mix shifting further towards peak-load usage, making forward planning more challenging.
In Asia-Pacific, thermal coal remains a pillar of the power and industrial sectors. Global coal trade flows and price spreads are shifting, with flows from key suppliers Russia, Indonesia, Australia, South Africa, Colombia, and the US penetrating new markets, in response to price dynamics and trade barriers.
Keeping on top of prices and flows, and how coal markets intersect with other energy and commodity benchmarks, will be critical in the coming years.
Latest coal news
Browse the latest market moving news on the global coal industry.
South Korea confirms merger of five state-run utilities
South Korea confirms merger of five state-run utilities
London, 3 September (Argus) — Plans to merge South Korea's five state-owned power utilities into a single entity were confirmed by the government today. The government is targeting July 2027 for the launch of the merged entity , sources previously told Argus . The utilities, which have operated separately since they were split from state-owned Kepco in 2001, are preparing for the consolidation through a joint task force. The consolidation is designed to bring the utilities' workforce and assets together to strengthen their ability to support the country's transition towards renewable energy and manage a just transition away from coal. The merged entity will provisionally be called Korea Power Generation. It will have a dedicated division to oversee the just transition from coal-fired generation, alongside a renewable energy division. The government expects the combined structure to increase investment capacity, while joint procurement could improve profitability. But market participants have previously questioned the potential cost savings from joint coal procurement, as buying larger volumes does not necessarily translate into lower prices in the South Korean coal market. They instead see greater benefits in coal supply management. Some expected the merger to bring greater transparency to the South Korean coal market, while others questioned whether reduced competition among buyers would benefit the market. The five utilities currently procure coal individually, with price playing a key role in buying decisions. Following the merger, procurement could put a greater emphasis on supply security and fuel quality , market participants said. Further discussions on the merger are due to take place on Friday, sources told Argus . By Dayu Park HQ location of S Korea's state-owned utilities Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Participation in CO₂ Auction Declines
Participation in CO₂ Auction Declines
Hamburg, 2 September (Argus) — The number of participants and the bidding volume both declined at the tenth auction of national emissions certificates (nEZ) today, 2 September, mainly because of the low allocation rate combined with high financing costs. A total of 108 participants submitted bids for 508,183,972 national emissions certificates (nEZ). In each of the previous two weeks, 112 participants had taken part in the auctions. The total bid volume fell by around 4pc compared with the previous week. As was the case at the eighth and ninth auction dates, the €65 rule was again not applied, meaning the allocation rate remained at just under 2pc. Market participants said that, given the very low allocation rate, participation in the auctions is becoming increasingly uneconomic because of the associated financing costs. This may explain the decline in the number of auction participants. For example, a bidder seeking to acquire 100,000 nEZ through the auction must bid the maximum price of €65/nEZ. Otherwise, the bidder would be unlikely to secure any allocation. But because the allocation rate is now predictably around 2pc, the bidder would need to submit bids for a total of 5,000,000 nEZ. At the clearing price of €65/nEZ, this requires financing of €325mn. Interest costs accrue on this amount for the period during which the funds must be deposited. As a result, some market participants are withdrawing from the auctions and instead plan to purchase additional nEZ from November onwards at the fixed price of €68/nEZ, plus any applicable fees. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Texas center plans alternative for EPA's GHG data
Texas center plans alternative for EPA's GHG data
Washington, 2 September (Argus) — A research unit at the University of Texas at Austin is preparing to launch a voluntary program, backed by the oil sector and environmentalists, that would replicate parts of a federally run greenhouse gas (GHG) reporting program that President Donald Trump's administration wants to eliminate. The university-led program, dubbed openGHGRP, is meant to serve as a "bridge" for continuing to collect a trove of key emissions data that would no longer be available if the US Environmental Protection Agency (EPA) moves forward with a repeal proposal it is likely to finalize soon. The University of Texas at Austin's Center for Energy and Environmental Systems Analysis (CEESA) plans to launch the program in the coming months. Initial financial support will come from the oil and gas groups the American Petroleum Institute, the American Exploration & Production Council and the American Gas Association, as well as Chevron and the nonprofit group the Environmental Defense Fund. About 8,000 industrial facilities report their annual emissions under the existing EPA program, which started collecting data in 2010. The Trump administration has sought to end the program over the objections of oil groups and manufacturers, who see the program as the most effective way to track their GHG emissions, comply with potential carbon-based import fees and claim federal tax credits. There are "Swiss cheese holes of need" for the emissions data everywhere, said openGHGRP's principal investigator Erin Tullos, who is also a professor at the University of Texas at Austin's chemical engineering department. "Rather than plugging each of those business use cases individually, people are like, 'Maybe it would be better if we just kept this intact.'" Those involved with openGHGRP said they want to replicate the existing EPA program as closely as possible, including using the same rules for emissions reporting and creating an online dashboard for the public to access the data. The program will launch initially to collect data from "subpart C" and "subpart W" sources, which primarily cover the oil and gas sector. CEESA is attempting to add more categories if it is able to secure enough financial support to cover the cost of collecting and processing additional data. API said last year that if EPA went through with repealing its reporting program, the industry would try to retain reporting voluntarily by finding a third-party alternative. The openGHGRP initiative has attracted broad support, API said. But it would be up to individual companies to decide whether to submit data. "The US oil and natural gas industry has a longstanding commitment to transparent, accurate GHG emissions reporting — and a consistent, accessible database of this information helps measure progress, inform sound policy and support American competitiveness in global markets," API vice president of corporate policy Aaron Padilla said. 'Not a substitute' Environmentalists not involved in the initiative see it as a positive that openGHGRP is working to replicate the EPA program, in a way that would make data accessible to the public. But they note it would not fulfill the same role as EPA's program, which was able to track nationwide emission trends, and not exclusively from companies willing to self-report. "It's going to be self-selecting within the (oil and gas) industry, and it's not going to include the other industries, so it's not a substitute for what we have under the regulations and under the law," Natural Resources Defense Council senior attorney David Doniger said. "If and when EPA promulgates the proposed repeal, it can expect to be challenged by the NRDC and others." Those working on openGHGRP said the effort is not meant to be a permanent replacement to EPA's program. It would instead offer a mechanism to continue to collect data in one location, avoiding data fragmentation and maintaining reporting capacity in participating companies. Those contributing a minimum amount of funding to openGHGRP will have a vote on a steering committee that will decide how to prioritize the build-out of information technology, but governance will include stakeholders from industry, non-profits and other groups. "Governance is set in these four corners, and no matter how much money you contribute doesn't change it," Tullos said. Other universities have already stepped in to replicate other climate programs the Trump administration has dismantled. Earlier this year, the University of Maryland's Center for Global Sustainability began publishing a national inventory for GHG emissions for the US, replicating data that EPA had compiled for 1990-2024 before it halted publication of the annual report last year. EPA, asked for comment on openGHGRP, said it was reviewing comments on its proposal to end greenhouse gas reporting. EPA released the proposed rule nearly a year ago. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Frontieras, Western Fuels eye Wyo. coal-to-fuel plant
Frontieras, Western Fuels eye Wyo. coal-to-fuel plant
Houston, 1 September (Argus) — US-based energy and technology company Frontieras North America signed a memorandum of understanding with Western Fuels, owner and operator of Wyoming's Dry Fork mine, to develop a coal-to-fuel plant at the facility. Under the memorandum, the companies established a framework to negotiate the terms of a ground lease for the proposed conversion project to be developed at the mine. Frontieras would use processing technology designed to convert Dry Fork's sub-bituminous coal into liquid fuels including ultra-low-sulfur diesel (ULSD). Through this partnership, Western Fuels would purchase some of the ULSD produced at the site for its mining and transportation operations. Frontieras would use Western Fuel's railway infrastructure to ship products made at the new facility. A coal-feedstock supply agreement would have the Dry Fork mine initially supply an estimated 2.7mn short tons (st)/yr (2.45mn metric tonnes) of coal and about 5.4mn st/yr upon completion of the project. "We are looking ahead to determine opportunities that expand this relationship across the full Western Fuels cooperative — broadly serving our member utilities and their communities while fulfilling our mission," Western Fuels chief executive Adam Anderson said. The companies have not disclosed financial details or details of the project's construction. The Wyoming project follows Frontieras' announcement in January about its plan to develop a $850mn coal-to-fuel plant in West Virginia. Output from Dry Fork in April-June rose to 1.08mn st from 1mn st a year earlier, US Mine Safety and Health Administration data show. By Matt Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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