Climate backfire: Coal-fired power jumps as natural gas prices soar

"The U.S. electric power sector has been generating more electricity from coal-fired power plants this year as a result of significantly higher natural gas prices and relatively stable coal prices," the EIA said in its October short-term energy outlook.

"Then natural gas, the second cleanest, became their target, so now many places are desperate for coal, the dirtiest option." The EIA predicted that the U.S. coal bump would be short-lived, given that utilities have retired about 30% of their coal generation capacity since 2010.

"For 2022, we forecast that U.S. coal-fired generation will decline about 5% in response to continuing retirements of generating capacity at coal power plants and slightly lower natural gas prices," said the agency, the independent data and analysis arm of the Energy Department.

U.S. emissions have declined steadily since 2005, thanks largely to the transition from coal to natural gas in power-plant generation, fueled by abundant domestic supplies unleashed by the shale revolution and driven by hydraulic fracturing, or fracking.

Still, global demand for natural gas is surging as nations rebound from pandemic shutdowns.

"This is an extension of shareholder and climate change activism that have pressured banks and other financial institutions to drop oil and natural gas from their portfolios." She cited BNP Paribas and Bank of the West as examples of investors "That have publicly announced no further financing of fossil fuels." About 80% of U.S. energy generation comes from coal, petroleum and natural gas, but "U.S. natural gas prices have been more volatile than coal prices, so the cost of natural gas often determines the relative share of generation provided by natural gas and coal," the EIA analysis said.

"This year natural gas prices have been much higher than in recent years. The year-to-date delivered cost of natural gas to U.S. power plants has averaged $4.93 per million British thermal units, more than double last year's price." Stan Dempsey, president of the Colorado Mining Association, said the increased reliance on coal is a reminder that "Low-cost electricity generated from coal continues to serve Americans as the most reliable source of energy." "It isn't too late to reverse the trend of prematurely closing coal-fired power plants and coal mines, especially when electric utilities are scrambling to secure energy needed for the upcoming winter," Mr. Dempsey said.

https://www.washingtontimes.com/news/2021/oct/18/climate-backfire-coal-fired-power-jumps-natural-ga/