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Kazakhstan steps up coal industry developments

  • Market: Coal
  • 16/06/26

Kazakhstan has announced numerous initiatives to develop its rapidly growing coal sector over the past few days, including timelines for its coal-to-chemicals projects and the construction and modernisation of thermal power plants.

The country's energy ministry said it was putting together plans to develop six coal-to-chemicals projects from 2026-31, with aims to produce metallurgical coke and synthetic fuels based on coal.

The ministry also said it plans to produce gas, ammonia, urea and other chemicals products from coal. The Kazakh state and state-run firms are ready to start concluding long-term offtake contracts for coal to produce these chemical products, the ministry added.

"The development of coal chemistry will allow us to move from the traditional use of coal to the production of chemical products, create new industries, and expand the country's export potential," Kazakhstan's vice-minister of energy, Sanzhar Zharkeshov, said at an industry event on 12 June.

Kazakhstan aims to invest more in coal mining technologies, modern thermal power plants and the modernisation of its transport infrastructure, energy minister Yerlan Akkenzhenov said.

The energy ministry will give further details on its expansion plans later this week, it said today. Its planned projects include introducing online control systems for coal production and loading into wagons. All initiatives are part of Kazakhstan's broader national project to increase coal use.

Separately, Kazakhstan held a meeting with German mining firm Koch Solutions today, to discuss ways to invest in the central Asian country's coal sector. The proposal was part of a broader co-operation, which includes the supply of Kazakh oil to Germany.

Kazakhstan has been leading a broad expansion among central Asian coal markets this year, attracting investments from countries including the US, Russia and China. Kazakhstan aims to boost its coal exports and increase domestic energy security.

Kazakhstan generated around 62.1pc of its power from thermal coal this year so far, with 23.4pc coming from natural gas, 7.5pc from hydroelectric power plants and the remaining 7pc from renewables, according to latest energy ministry data. The country is making moves to diversify its power grid but ambitious plans to boost coal consumption overall will likely keep the solid fuel on top of the merit order in the long run.


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