BAKU, Azerbaijan, December 19. Non-power consumption of thermal coal and lignite rose by 2.5% in 2023, reaching 1,736 million tons (Mt) and accounting for 23% of total thermal coal and lignite use, according to the International Energy Agency (IEA), Trend reports.
This growth was primarily driven by China and ASEAN countries, underscoring the diverse industrial applications of coal beyond electricity generation.
China, the largest consumer, recorded a rise to 1,094 Mt, driven by growth in its coal conversion sector aimed at reducing oil and gas import dependence. Meanwhile, ASEAN countries experienced a notable 13% increase, climbing from 76 Mt to 87 Mt. Indonesia led this surge, adding 9 Mt, fueled by its strategic focus on boosting nickel production to meet global battery demand. Nickel production in Indonesia, which heavily relies on coal through the rotary kiln-electric furnace (RKEF) process, has become a key driver of coal consumption in the region.
The outlook for 2024 suggests modest growth in global non-power coal demand, with gains in India offsetting declines in other Asian nations and the EU. In China, initiatives to cut residential and small industrial coal use, along with weak cement demand due to slowed infrastructure investment, are expected to temper growth. However, the coal conversion sector remains a potential area of expansion.
By 2027, China’s non-power coal demand is projected to decline by 58 Mt, driven by these transitions. In contrast, India is set to maintain its upward trajectory, with industrial activity growing nearly 6% annually. India’s non-power coal consumption is expected to increase by 44 Mt, while ASEAN countries could see an additional 10 Mt of demand.
Globally, non-power thermal coal and lignite consumption is forecast to remain relatively stable, declining slightly by 4 Mt, or 0.2%, by 2027.