Gas-to-coal fuel switching for electricity is sub-economic

[dan_s]

- Coal prices across all continents have soared to all-time highs this week, almost triple what it was a year ago, as uncertainty over gas flows in Europe and stagnant LNG volumes favor “king coal”.

- Asia’s benchmark contract, the ICE Newcastle futures, jumped to $463.75 per metric ton on Monday, whilst spot physical coal loaded in Australia was priced only a $30/mt lower.

- Oddly enough, the coal price rally might still see further upside as La Nina weather events might impact the supply side, especially with rainfall-driven weather disruptions in Australia.

- In Europe, the rebound in natural gas prices triggered by Gazprom’s halting of Nord Stream-1 flows, with front-month spot prices around $75/mmBtu, has pushed the 2023 yearly API2 coal contract to $340/mt.
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Wake up to reality: Wind and Solar will NEVER LIVE UP TO EXPECTATIONS. Europe cannot stop using coal for power generation until they have a secure source of natural gas or go back to nukes. BTW there are massive reserves of natural gas sitting under Germany and Poland, but they don't want those "evil fossil fuel companies" drilling in their beautiful countries.