Environment & Energy
Related: About this forumUS Utilities Saddled With Huge Unused Coal Stockpiles; At Some Point, True Demand Collapse Inevitable
American power producers over the past two years have accumulated massive amounts of coal that are now sitting idle at their facilities creating financial and storage headaches for utilities and coal miners alike, a new analysis has found. The coal stockpile has reached about 138 million tons, or about the equivalent of the quantity of coal that Appalachia is expected to produce in 2025, according to the report, published Monday by the Institute for Energy Economics and Financial Analysis.
These mountains of coal are not only creating storage problems, but they are also posing financial challenges piling up to about $6.5 billion in unused inventory, based on an average $47.22 per ton delivery rate, per the analysis. No power producer wants that much money idly sitting around, the report authors stated. But it has become much harder to burn that coal without losing money.
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As such, U.S. coal plants now burn a total of only about 1 million tons per day, half as much as they did in 2015, according to the analysis. Meanwhile, coal deliveries have been dwindling for more than 15 years falling from more than 80 million tons a month in 2008 to potentially less than 20 million tons during some months of 2025, per the report. Given the buildup in coal stockpiles, the authors warned that at a certain point, power providers will buy a lot less of the resource from coal producers.
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https://thehill.com/policy/energy-environment/5042344-coal-stockpile-financial-storage-challenges-report/
keithbvadu2
(40,487 posts)ChazInAz
(2,805 posts)All the mines going full tilt, piling up mountains of coal that is never used. Every four years, it gets crammed back into the mines. Four years later, it gets hauled back out again. Repeated ad infinitum every election cycle, the oligarch mine owners being lavishly subsidized by a grateful government.