Market Overview

China Market Analysis

Import and Domestic Market for Coldry BCE

World’s largest producer and consumer of coal. China has shifted from a net exporter to a net importer.

China’s exports and imports are both affected by the international coal price. At current international coal price levels, China’s coal imports are substituting some domestic production.

From January to August of 2009, China imported 73.8 Mt black coal and exported 14.83 Mt black coal.

Coal is a major energy security challenge for China. At current levels of production, China’s current proven reserves will run out by 2050.

Adoption of Coldry will drive economic utilisation of untapped, high-moisture coal resources for efficient use in both co-located black coal fired power generators and the growing gasification demand base, as well as efficient distribution to regional coal markets.

Sources: Coal Information 2009, Shenhua

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India Market Analysis

Challenges Facing Power Sector

  • Coal supply shortages affecting coal-based power
    • Growth in demand and the need to retire current supply
    • Critically low coal stock levels creating partial shut-downs
  • Coal is plentiful but of low quality
    • High ash content (up to 40-50%) and often low heating values
    • SOx and NOx issues creating environmental hazards and pollution.
  • Plant efficiency extremely poor
    Average efficiency of installed base of power plants is 29%, partly due to poor quality of coal
  • Emissions
    High costs associated with current scalable low-emissions technology and fuel sources.

Challenges Facing Coal Sector

  • Significant supply and demand imbalance
    Projected growth in demand for coal is significant, with the gap between coal supply and demand continuing to grow.
  • Increasing dependence on coal imports
    Coal imports in 2009 projected to be approx 40 MTPA and growth to over 100 MTPA by 2013. Over-reliance on imports creates new energy security risks.
  • Private sector parties involved in the coal sector have faced significant planning challenges
    Challenges of land acquisition and government approval resulting in less than 20% of allottees offered captive coal blocks have managed to start production.
  • Development to realise growth
    Public and private stakeholders will need to increase investment, develop and deploy newer technologies and enhance productivity.

“Thirty-four out of 78 thermal power stations in the country have a coal stock that barely can last a week. And in 12 of them, the position is worse and the stock will suffice for less than four days” (Business Today, 26 July 2009)

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