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 launches first coal-to-clean energy project
South Korea launches first coal-to-clean energy project
London, 8 July (Argus) — South Korea has launched its first project to transform a retired coal-fired power plant into a renewable energy hub, as part of its efforts to accelerate the country's clean energy transition . South Korea's state-owned utility Korea Western Power (Kowepo) signed a joint development agreement with renewable energy developer Vena Energy and Copenhagen Infrastructure Partners for its Taean offshore wind project, it said today. Kowepo will build a 500MW offshore wind farm in Taean county, with operations scheduled to begin in 2029. The wind farm will operate for about 25 years and reuse the grid infrastructure of the retired Taean 1 coal-fired plant . The project is expected to create new jobs and help boost the regional economy, Kowepo said. It is also expected to serve as the first phase of the utility's 1.4GW offshore wind cluster in Taean . The South Korean government will continue pursuing its target of deploying 10.5GW of offshore wind capacity by 2030, climate and energy minister Kim Sung-hwan said. Kim described the Taean project as a good example of a " just transition " and said the government would continue supporting similar projects through policy measures. The project comes as South Korea's state-run power utilities are stepping up preparations for the country's coal phase-out. Korea Southern Power (Kospo), for example, last week launched a joint study with climate and energy ministry Mcee and other fellow state-run utilities on repurposing retired coal-fired power assets and workforce. By Dayu Park Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Kazakhstan starts build work at 700MW coal plant
Kazakhstan starts build work at 700MW coal plant
London, 6 July (Argus) — Kazakhstan has started work at a 700MW coal-fired power plant project that will cost an estimated 759bn tenge ($1.6bn), the energy ministry has said. The plant will be located in Kurchatov in the eastern Abai region, with construction expected to wrap up in 2032 and the plant generating around 5 TWh/yr once operational, the ministry said on the weekend. The ministry emphasised the use of clean coal technologies at the plant, which will run at supercritical steam conditions. The project is aimed at meeting Kazakhstan's longer-term energy security goals, reducing the risks of power shortages, increasing industrial output and attracting foreign investment. The plant, along with two others, had been delayed for months due to funding issues. The projects were jointly approved last year by Kazakhstan and Russia with a subsidised loan from Moscow but negotiations stalled earlier this year . The latest project forms part of Kazakhstan's gaol of expanding coal-fired electricity through 7.8GW of new and upgraded additions to the grid, including the construction of eight thermal coal plants. These include the 2.6GW Ekibastuz GRES-3 project, a 350MW plant in Karaganda, a 180MW unit in Ekibastuz and projects in Zhezkazgan (500MW), Kokshetau (240MW) and Ust-Kamenogorsk (360MW). Kazakhstan's Abai region shares a border with China and has been an active spot for the construction of thermal coal-fired power plants under a national project announced this year, with plans to build another 360MW coal-fired plant in Semey by 2029. By Shreyashi Sanyal Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Malaysia eyes converting coal sites into renewable hubs
Malaysia eyes converting coal sites into renewable hubs
Singapore, 3 July (Argus) — Malaysia is considering repurposing retiring coal sites into renewable energy hubs and battery storage facilities, deputy prime minister and minister for energy transition and water transformation Fadillah Yusof said on 2 July. Transforming coal sites into clean energy developments is an important consideration for Malaysia's energy transition, Fadillah said at the Malaysia's Energy Future: Power Sector Decarbonisation Deep Dive event organised by the World Economic Forum (WEF), citing a new report by the WEF and Malaysia's energy transition and water transformation ministry (Petra). The Beyond Coal: Building a Flexible, Resilient and Clean Power System for Malaysia report proposes a national coal site repurposing framework, under which retiring coal plants would be repurposed into clean energy hubs, particularly solar and battery energy storage systems (Bess). Repurposing retiring coal sites would maximise the utility of existing land and infrastructure while contributing to system reliability, according to the report. "Rather than allowing these assets to become stranded, we should view them as opportunities to create new economic value," said Fadillah. Fadillah also stressed the need for renewable energy deployment in Malaysia to outpace coal retirements. This will ensure that the country's coal phase-out does not lead to increased imports of LNG and expose Malaysia to price volatility and external geopolitical uncertainties. Malaysia has already begun repurposing coal sites. Malaysian utility Sarawak Energy transformed a unit at its Sejingkat coal plant into a 60MW/82MWh Bess that started operations in 2024, providing a replicable model for future transformations, the report said. The report also suggested fuel blending — such as co-firing biomass with coal — as an interim measure, as well as managing gas use with shorter 15-year power purchase agreements (PPAs) to avoid long-term lock-ins. Advancing the Asean power grid and exploring nuclear power as a long-term alternative to gas were also recommended. Fadillah reiterated Malaysia's commitment not to build new coal-fired power plants and to entirely phase out coal by 2044, as well as its target to achieve a 70pc share of renewables in total installed capacity by 2050. Coal accounted for 52.5pc of Malaysia's energy mix in June, while renewables accounted for 4.7pc, according to data from electricity planning authority Single Buyer. By Ishika Gupta Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
South Korea, Japan eye US coal amid Indonesia cuts
South Korea, Japan eye US coal amid Indonesia cuts
London, 2 July (Argus) — Tighter thermal coal export availability from Indonesia since the country announced reduced coal production earlier this year has prompted two of Asia's major thermal coal buyers — South Korea and Japan — to seek more US thermal coal as an alternative supply source. The shift has highlighted different procurement strategies adopted by the two markets. South Korean buyers have stepped up spot purchases of US coal to diversify supplies and enhance energy security, while Japanese buyers have sought additional cargoes through long-term contracts after some Indonesian suppliers said that they might be unable to fulfil long-term contractual commitments earlier this year, sources told Argus . Expectations of stronger coal-fired generation this year, especially during summer months in South Korea and Japan , could further support US thermal coal demand, sources said. South Korea's interest in US coal has been concentrated in lower-calorific value (CV) product supplied from the Powder River basin, while Japanese buyers have focused on higher-CV coal, including mid-CV material from the western US, market participants said. Some South Korean utilities view US thermal coal as a suitable alternative to Indonesian low-CV coal because of its heat and sulphur contents, according to sources. Western US coal export availability typically is constrained by limited terminal capacity and costs of transporting coal by rail over the relatively long distance between the mines and North American west coast ports. That limits the volume that producers can ship to overseas market. But lower-than-expected winter coal demand in part of the US left additional cargoes available, market participants said. Japan's overall thermal coal imports in January-May were flat on the year at 40.5mn t, although imports from the US rose by 30.1pc on the year to 2.2mn t over the period, customs data show. South Korea took 34.9mn t of thermal coal over the same period, up by 27.9pc on the year, while US coal shipments to South Korea fell by 70.3pc on the year to 416,000t during the period, according to Argus data. The sharp decline, despite robust demand, was because of stronger Japanese purchasing reducing the availability of US export cargoes, sources said. Some western US coal producers also favoured selling coal to domestic customers at the end of last year and into early 2026. South Korean buyers have recently secured some US thermal coal cargoes, according to sources. The country is set to receive about 219,000t of US thermal coal from Vancouver's Westshore terminal this month, Kpler data show. Demand for US coal from South Korea and Japan is set to remain firm in the near term, with Indonesia now expected to strictly enforce existing export restrictions to meet domestic supply requirements, although whether that translates into additional purchases will largely depend on the availability of exportable US cargoes. By Dayu Park and Courtney Schlisserman Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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