Are we heading for Peak Coal?

As Asia is embarking on a massive expansion of coal-fired power generation, supplies of the high-quality fuel required are being squeezed. And that means the price of coal could soon catch up with oil.

Peak oil, yes; but peak coal? India's Tata Power recently acquired 30% stakes in Indonesia's two largest coal mines, securing 20 million tons of coal to fuel its 750 kilowatt project on India's west coast. This is a shrewd and opportune move.

There's a sustained and tightening squeeze on global supplies of the 'thermal' coal needed to power the world's coal-fired power stations, just as Asia (except Japan) embarks on a massive expansion of planned generating capacity based on coal, despite rising concerns about carbon pollution. The technology that needs to be deployed to separate and store the pollutants from coal burning is still at least five years away.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.