From the coal face

The coal industry is glad for its coal advocates, especially those who help take on the headwinds of public opinion and perception, regulations and its future – all at the same time. In this month’s Q&A, NAM spoke with FutureCoal’s Michelle Manook on the heels of the group’s rebranding from the World Coal Association.

Edited by Donna Schmidt

NAM: Hi, Michelle, thanks so much for talking with NAM, especially as the organization goes through such a significant transition. What does this mean to you personally, to become FutureCoal?

Manook: For me, FutureCoal is both a vision and a statement for this legitimate and vital resource. It creates the necessary global platform for the Coal Value Chain to commit to its united transformation which is needed if we are to meet our global community’s economic and environmental expectations.

What does (and can) this mean to the industry?

My hope is that it serves as a clear statement of intent for a united value chain. FutureCoal does not represent confusion or denial. It does not differentiate or favor any participant across the coal value chain. It is rooted in reality and recognizes the need for continuous improvement and modernization of our industry.

This is about sophistication. FutureCoal represents one commodity – coal – and if you are directly or indirectly dependent on it, whatever your stake, then you have a responsibility to our community to unite the value chain and educate the world on coal’s vital contribution and the possibilities for addressing emissions reduction goals.

We work hard to maintain a multilateral, neutral, and progressive organization. We leave geopolitics at the door, reminding ourselves that our common purpose is to ensure coal, in all its forms, continues to improve people’s lives.

Can you tell me more about your background, and what brought you to the mining industry?

I have always been intrigued by the ‘unconscious’ relationship between mining and our way of life. The climate debate, in my view, has been irresponsible. We have ALL failed to acknowledge and educate our communities about this undeniable link. Every aspect of mining, including resources extracted and manufactured for renewables, has an environmental impact that is often overlooked. As a coal industry collective, we are committed to taking responsibility for reducing our impact.

I appreciate that some mining companies have let us down over the decades, but I have been fortunate to work with some of the best mining and resource companies who understand that license to operate means doing right by the community.

I have seen firsthand what these industries do to reduce their footprint, contribute to local communities, positively impact our modern lives, and what it could do for those still striving to have what many of us take for granted.

Working with inspirational local community and government leaders worldwide has shown me how mining contributes to a nation’s ability to achieve or maintain self-reliance and prosperity. We have a responsibility to do this well, and I guess I want to hold a mirror to that.

Global coal is in an interesting position right now. Some are fearful, others excited. What is your take?

Be excited, but just be factual. Renewables are not the panacea, and people are waking up to this reality. Every day, governments and financiers are rethinking their positions, as they should. This debate should never have been about picking winners and losers. It should have focused on Energy Addition, not a transition away from any one fuel source.

While the Global North is still debating whether it ‘likes’ coal, the major coal economies of China and India are increasing coal production to ensure energy security. At the same time, they are investing heavily in coal abatement projects and beyond-combustion initiatives like hydrogen and coal gasification.

This era of coal is about evolution. It’s about viewing coal within a circular economy and exploring its uses beyond traditional combustion.

I believe leadership for the coal industry will come from emerging and developing nations and those who support them.

What region of the world is leading the coal ‘pack’ right now in terms of sustainability?

From an end-user perspective, Asian countries undeniably lead the coal industry in sustainability. Asia has championed ultra-supercritical and supercritical coal technology, integrating it to complement their growing renewable and gas fleets.

Japan has operated the most efficient coal fleet for decades, and China is catching up fast, with some of their plants now cleaner than gas turbines. India is making significant strides by investing in the conversion of 100 million tonnes of coal into gas by 2030, reducing dependence on imported oil and gas, and moving toward energy autonomy.

China is at the forefront of clean coal-to-hydrogen technology. The world’s largest facility in Yulin, Shaanxi, produces 350,000 tonnes of hydrogen annually, cutting CO2 emissions by about 220,000 tonnes each year.

Let us not forget the efforts of the Boundary Dam coal plant in Canada and Petra Nova in Texas. Both have provided valuable learning experiences for CCS and coal, proving that it can work in North America. The 45Q tax credit system in the U.S., which rewards CO2 storage with credits regardless of the fuel, is a technology-agnostic approach that Europe could adopt. However, Europe is lagging in this respect and may pay the price in the long term.

These projects demonstrate that coal can be sustainable and contribute to achieving climate goals, as highlighted in our Sustainable Coal Stewardship framework. We present this framework to governments, investors, and industry players to showcase coal’s potential.

The concept of ‘Beyond Combustion’ envisions expanding the coal industry’s future business opportunities beyond traditional power generation. This includes transforming coal into higher-value products such as liquid chemicals, hydrogen, synthetic hydrocarbons, methanol, ammonia, agricultural and food production applications, and even critical minerals and rare earth metals, which are vital to America’s digital and electrified future.

Coal waste, such as fly ash from power stations, is extensively used in cement production. This recycling reduces the need for mining materials and produces superior construction materials. Depending on the amount of ash reused and blended, it can eliminate the CO2 emissions from energy use and process emissions from cement manufacturing. The construction industry benefits from fly ash and other materials captured from coal combustion at power plants, and the environment benefits by reducing the need to mine materials for cement and drywall plasterboard.

The takeaway here is sustainable coal’s total contribution has many tentacles into many industries.

What do you think are the three biggest challenges and advantages to coal globally in the short-term and long-term future?

Many may find this oversimplistic, but in my view, the coal industry’s challenges, and opportunities, both short and long term, are related to unification. The value chain must unite globally to support and leverage the potential value of this critical resource. It must educate with a clear and compelling singular narrative.

Fragmentation across this value chain has left us vulnerable and made us weaker in many ways.

You cannot tell the story of coal as a miner, a consumer, or a supplier. It must be told as an integrated value chain. The FutureCoal Global Alliance members understand this, and I believe the current momentum around prospective members demonstrates that many are coming to a similar realization.

I always encourage people to look at the coal value chain in the domino effect. When the coal domino falls, we all fall. This ‘fall’ can either be to a destination decided by us where communities continue to thrive or by a destination trying to be imposed on us by others where we are to die. Our choice.

What’s FutureCoal’s outlook for North America’s coal industry? Where is it doing well, and where is improvement needed?

During my recent trip to Capitol Hill, where I met with many of [U.S.] political representatives, I emphasized two crucial issues: energy security and international competitiveness. In China and India, these goals are clear and unambiguous.

I believe a robust and politically supported North American coal market can help achieve these goals for the nation. Energy policy that fails to invest in diversity is, in my view, naïve.

To be clear, this is not about claiming that renewables are bad and fossil fuels are good. It’s about recognizing that we are not ready for a single solution. Destabilizing the power sector by making it more expensive, unreliable, and unsustainable is irresponsible. We need all energy sources.

The U.S. energy strategy needs to reassess aging coal plants, focusing on reinvesting in cleaner coal technology, similar to the efforts in Japan, India, and China.

The path to decarbonization is complex and uncertain. While the U.S. aims to lead in an electrified future with advancements in electric vehicles (EVs) and artificial intelligence (AI) data centers, these ambitions will inevitably increase demand on the power grid.

Additionally, U.S. coal exports have steadily risen since their decline in 2020. Although global steel mills might shift toward using more scrap and electric arc furnaces, this shift underscores the need for a stable and substantial supply of electricity required for melting scrap.

What is your/FutureCoal’s position on coal as a part 
of energy’s future?

As electrification becomes more prominent in the transport and heating sectors, we face a dilemma. Renewables require extensive land and mineral resources, are labor-intensive, and produce less electricity per gigawatt compared to thermal power plants. Historically, oil and gas supplies have been the primary contributors to energy insecurity. Today, this issue is further complicated by the inclusion of weather-dependent wind and solar energy. It’s important to recognize that all these energy sources have their own benefits and drawbacks without labeling them as inherently good or bad.

Coal remains pivotal in the future energy landscape, providing stable, reliable, and affordable energy essential for supporting intermittent renewables and ensuring energy security, especially in emerging and developing markets. It deserves a more positive reputation in energy discussions, with greater recognition of the advanced technologies that ensure its responsible production and consumption.

At FutureCoal, we champion advanced coal abatement technologies to reduce environmental impacts. Our Sustainable Coal Stewardship framework focuses on responsible coal use and deploying technologies that can abate up to 99% of coal pollutants. We advocate for balanced energy policies that recognize coal’s role in the transition to clean energy. Transitioning means integrating clean solutions for fossil fuels, not phasing them out.

However, we must remember that coal is more than just a power source. It provides a significant portion of the world’s hydrogen and is essential for nearly 70% of global steel production. It is fundamental to modern life.

Next time you use your electric vehicle, enter a building, switch on the lights, or use electronics, remember that coal plays a key role in making these components affordable and accessible.

What are the most exciting uses for coal that you 
are seeing?

The United States has the world’s largest coal reserves, estimated to last approximately 420 years at current production rates, surpassing both natural gas and oil reserves. To advance Carbon Capture and Storage (CCS), driven by climate targets and tax credits, innovations are emerging from universities in Pennsylvania, Wyoming, and West Virginia. These institutions are exploring methods to extract critical minerals from American coal, reducing reliance on Asia for materials needed for an electrified and digital future.

America’s market-driven approach has effectively promoted fracking, displacing coal in many states. However, non-market incentives for renewables can artificially boost investments, leading to short-term decisions that may overlook long-term implications.

In contrast, Asian economies have struggled with natural gas and renewables due to weak grids and interconnections. In the 2000s, a coal-building program led to the development of supercritical and ultra-supercritical coal plants, which now form the majority of their fleets. These plants are more efficient and cleaner, with even the Indian coal power fleet being more efficient than the older U.S. fleet today.

The Australian and Japanese governments funded the Hydrogen Energy Supply Chain, or HESC, which produces hydrogen from Australian lignite and then ships the gas 5,500 miles from the Port of Hastings to Kobe in Japan. The process involves producing hydrogen from lignite and biomass at a gasification plant, trucking it to the Port of Hastings, cooling it to 250°C, and compressing it 800 times before transporting it to Kobe, Japan.

In Beijing, China, the China National Building Material Group (CNBM) developed a light aircraft body from coal-derived carbon materials. China Energy has constructed Asia’s largest CCS plant, capturing, and storing 500,000 tonnes of CO2 at the Taizhou project. They plan to capture most emissions from an ultra-supercritical 1,000-megawatt power station.

China Huaneng is also building the largest coal-fired power plant with CCS, capturing 1.5 million tonnes of CO2, which is set to come online later this year. China also captures CO2 during chemical and liquid production to reduce dependency on imports and natural gas.

With its abundant coal reserves, America’s opportunity is to not follow the pack but rather look beyond 20th-century coal and lead in investing in coal technologies for the 21st century. The two largest coal economies in India and China are already on their way. They understand that coal is an ecosystem which needs to be harnessed.

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