Latest data released by the Energy Information Administration shows that electric power plants in the United States held 138 million tons of coal by May’s end. According to the agency, this is the highest level since the drop in the demand for coal and power recorded at the beginning of the pandemic in 2020.
Overall, the share of coal used to generate power in the country over the last couple of years has greatly decreased. This has, in turn, caused coal stocks at power plants to plunge from record highs. For instance, the power sector in America used 385 million coal tons in 2023. This represented a 43% drop in coal use compared to figures from 2016.
In 2023, coal stockpiles at the end of the year totaled 131 million tons, which was 19% less than stockpiles recorded at the end of 2016.
Most consumption of coal in the United States occurs during the winter and summer, with generators of power starting to increase their coal stocks in the spring. In the summer, coal-fired power generation often increases, particularly when heat waves affect areas where wind power can’t generate additional power.
Most operators of coal plants hold extra coal due to delivery constraints in the supply chain, which may limit how fast these plants can add to their stockpiles. According to the Energy Information Administration, coal-fired power plants in the U.S. are holding enough coal to generate electricity for roughly 60 days.
As the shares of natural gas and renewable energy increase, however, coal is losing more market share in the American power sector. Combined, all sources of renewable energy, including solar, wind, biomass, geothermal and hydropower, did better than coal-fired generation in America’s electric power sector in 2022.
Despite the constant drop in coal-power generation, coal’s share in the country’s electricity mix is still higher than 15%, which is more than any source of renewable energy. In total, coal still generates 16% of electricity used in the country, while wind, hydropower and solar generate 11%, 6% and 4% of electricity used, respectively.
The states that rely on coal most in the United States for over one-half of their electricity generation are West Virginia, Wyoming, Kentucky, Missouri and North Dakota.
The fossil fuel continues to play an important role in providing reliable baseload electricity. The Biden Administration has put plans in place to reduce coal use, however, with its objective being to make America’s power grid zero emission by 2035. That will require an abundant supply of critical metals, such as copper, and exploration companies such as Aston Bay Holdings Ltd. (TSX.V: BAY) (OTCQB: ATBHF) could stand to address this demand in the coming decades.
NOTE TO INVESTORS: The latest news and updates relating to Aston Bay Holdings Ltd. (TSX.V: BAY) (OTCQB: ATBHF) are available in the company’s newsroom at https://ibn.fm/ATBHF
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