Skip to content

Despite its well-known environmental impacts, coal remains a widely used resource in our modern world. Its energy density, affordability, and abundance have made it a staple in a wide range of industries, powering not only electricity generation but also manufacturing and production in a variety of sectors. Even as the world moves toward more sustainable energy sources, coal continues to play an important role in meeting global energy and industrial needs.

Coal’s role in power generation

Coal is an important source of electricity worldwide thanks to its ability to provide consistent, reliable power. In 2022, it generated 36% of the world’s electricity, and more than 80 countries depend on it for electricity and heat. This reliance is expected to continue until at least 2040. Unlike renewable energy sources such as solar and wind, coal-fired power plants can operate 24 hours a day, seven days a week, regardless of the weather. However, coal is also a significant contributor to CO2 emissions, making it a less sustainable choice in the long term. As the global energy landscape evolves, efforts are being made to move away from coal, supported by technological advances and policy changes.

Other major coal-dependent industries

1. Steel production: Coal is essential for the production of steel, on which about 70% of the world’s production depends.

  • Importance: Coal is used to make coke, an essential component of the blast furnaces that convert iron ore into iron, the basis of steelmaking.
  • Example: A typical car requires about 900 kg of steel, the production of which requires about 770 kg of coal.

2. Cement production: About 90% of the world’s cement production depends on coal. About 90% of the world’s cement production depends on coal.

  • Importance: Coal provides the high temperatures needed to make cement and can be a component of the cement itself.
  • Example: It takes about 10 tons of cement to build a single-family home, and about 1 ton of coal to produce it.

3. Aluminum production: Approximately 61% of the energy used to produce aluminum comes from coal.

  • Significance: Extracting aluminum from its ore is an energy-intensive activity, often powered by coal-fired electricity.
  • For example, the production of one ton of aluminum can require up to 17,000 kWh of electricity, often generated from coal.

Other uses for coal:

1. Agriculture: Coal is a key ingredient in fertilizers that increase food production.

  • Importance: Coal can be converted into ammonia, an essential component of many fertilizers.
  • For example, about 90% of ammonia production is used in fertilizers, which are essential for global food production.

2. Renewable energy production: Coal plays a role in the production of parts for renewable energy technologies such as wind turbines and solar panels.

  • Significance: The high temperatures required to produce materials for these technologies are often dependent on coal energy.
  • For example, a single wind turbine can require up to 260 tons of steel or about 170 tons of coal.

3. Essential minerals: Coal and its byproducts contain valuable minerals used in a variety of high-tech applications.

  • Importance: Coal ash, a byproduct of coal combustion, contains rare earth elements that are essential to electronics and other modern technologies.
  • For example, an iPhone can contain up to 8 different rare earth elements, such as neodymium and dysprosium, which are essential for components such as speakers and screens.

Future Potential: Hydrogen Production

  • Significance: Coal gasification can produce hydrogen more cheaply than water electrolysis. This could make hydrogen a more viable clean fuel.

Understanding these diverse uses of coal underscores its pervasive role in the global economy, even as we strive to reduce its environmental impact and move toward greener alternatives.