Coal – Optimism about the Future of the Industry
I am optimistic about the future of the Coal Industry and a listener to my radio interviews has asked for facts to back up my optimism?
Let us start with the demand for thermal coal in Europe. The most technologically advanced country in Europe is Germany. The biggest provider of electricity in Germany is from coal-fired power stations.
Future demand in South East Asia is huge, 40+ planned in Japan alone. Australian coal exports are uniquely placed to supply that demand, especially due to our quality and proximity to the market.
What is driving that demand in South East Asia?
The united nations expect that within 30 years over 60% of South East Asian population will be urban.
World Coal Association (WCA) Chief Executive, Benjamin Sporton, has said that coal is the enabler of modern societies and economic development. It will help build infrastructure and power businesses and homes. As Asia rapidly urbanises and industrialises, coal will become the fuel of choice.
Why? Due to coal’s abundance, affordability and reliability. The WCA estimate that 50% of electricity generation growth in South East Asia by 2040 will come from coal, thus overtaking gas as the primary fuel.
Largest Obstacle to Growth in Asia
Asian Development Bank (ADB) research found businesses reported that the single largest obstacle to growth in developing Asia was poor electricity supply.
Improvement in Emissions
I have spoken before about improvements in emissions from coal-fired power stations. They are technologically proven, commercially available today and reduce carbon dioxide emissions by up to 35%
We have not mentioned coking coal in this article, but the bottom line is that if you have a job in the coal mining industry, your future is positive.
The uncertainty of the last few years is over.
My clients now feel comfortable in taking on a commitment to look after their future by investing in and building a residential investment portfolio.
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Property Pick of the Week
We are now at the final stages of Stone Ridge and I have elevated lots with views to the Glass House Mountains.
Remember, in property investment you are better off being one year early than one week too late.
Steve Taylor
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At the helm of Steve Taylor & Partners, Steve has been delivering expert advice and product knowledge to clients for over 30 years. We provide individuals, couples and families with the right strategies to create wealth and change their lives with solid bricks and mortar.
DISCLAIMER
Steve Taylor & Partners blog is opinion and not advice. Readers should seek their own professional advice on the above subject. The figures stated in this article were accurate at the time of publication. For up to date figures, please contact our office.
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