Coal deficit looms
ASIA-PACIFIC nations including China, the world’s biggest coal producer, will have a 103 million-ton annual deficit of the fuel used by generators by 2020 as more power plants are built in the region, according to UBS AG.
‘‘ Utilities in Asia are — except for Japan — not subject to carbon emission caps or costs, and coal is likely to remain the preferred fuel,’’ analysts including Hong Kong-based Stephen Oldfield wrote in a report to clients published this week. The result will be ‘‘ strong pricing for a sustainable period’’.
Demand for thermal coal in the region will increase to 6 billion tons in 2020 from 2.5 billion tons last year, says UBS, Europe’s biggest bank. China, the world’s fastest-growing major economy, will be the main driver of the coal shortage, USB says.
China’s production of power generated from coal will increase by 145 per cent by 2020, according to the UBS report. AAP, Bloomberg