Damon Mcknight
Coal has played a significant role in Australia's economy and energy production. Australian coal was first discovered in 1797, and the country became the world's top coal exporter in 1984. Coal exports have brought in substantial revenue, and the industry provides jobs for many Australians. Additionally, coal-fired power has been a major source of electricity generation in Australia, contributing to the country's energy needs. However, there is growing pressure to reduce coal dependence due to climate concerns, with Australia facing criticism for its lack of climate action.
| Characteristics | Values |
|---|---|
| Coal exports in 2020 | A$55 billion |
| % of national revenue from coal exports in 2020 | 1% |
| Coal workforce | 40,000 |
| Coal exports in 2019 | $63.9 billion |
| Global exports in 2016 | 32% |
| Global share of coal exports | 54% |
| Coal exports in 2013 | 77% |
| Global coal consumption by China and India | 64% |
| Australia's coal exports to China in 2020 | 69% |
| Australia's coal exports in 2017 | 60% of the nation's electricity requirements |
| Australia's coal exports in 2016 | 389 Mt out of 1,213 Mt total |
| Australia's coal exports in 1986 | 50% to Japan |
| Australia's coal exports in 1984 | Ranked #1 |
| Australia's coal exports in 1949 | 7-week strike |
| Australia's first coal exports | 1799 |
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What You'll Learn
Coal is Australia's second-largest export
Australia exports the largest share of coal of any nation, with 54% of the total exports. The country became the number one coal exporter in 1984, and in 1986, it supplied around half of its exports to Japan. Australia is the world's leading exporter of coking coal, a type of coal used in steelmaking. In 2021-2022, about 55% of its coal exports were thermal coal, primarily used for power generation, with the remainder being metallurgical coal.
Australia's coal is in high demand due to its high energy and low ash characteristics, making it ideal for modern, high-efficiency coal-fired power plants in Asia. Additionally, Australia's reliable supplier status, proximity to key markets, and good infrastructure availability have contributed to its dominant position in the coal export market.
The country's coal industry provides direct employment for over 50,000 Australians and supports the jobs of another 300,000 people, particularly in rural communities. However, critics argue that the economic benefits of coal exports are overstated, with most of the wealth concentrated in the hands of mining companies.
Despite the urgent calls to phase out coal due to its significant contribution to CO2 emissions, Australia remains committed to its coal industry, citing the increasing global demand and the industry's economic importance. The Australian government has expressed support for carbon capture and storage technologies to reduce emissions from coal-fired power plants and ensure the industry's long-term viability.
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Coal is a source of affordable energy
Coal is a fossil fuel that is still extensively used today due to its availability and low cost. It is also relatively easy to transport and handle, making it one of the most widely traded fossil fuels. In addition to power generation, coal is used in industrial processes such as steelmaking and, in some countries, for heating homes and buildings. The burning of coal, however, produces large amounts of CO2 and other pollutants, and there is a growing anti-coal movement as countries strive to meet global climate goals.
Australia's allegiance to coal has been criticised, as it is the only wealthy nation still heavily reliant on this energy source. Despite this, the Australian government has stated its support for the coal industry, with Minister Pitt highlighting the increasing global demand for Australian coal. Pitt also emphasised the economic and social opportunities created by the coal industry, providing direct jobs for over 50,000 Australians and supporting a further 300,000 jobs.
To address environmental concerns, Australia is investing in carbon capture and storage technologies. The country's leading carbon capture and storage research organisation, CO2CRC, has made significant progress in this field. Additionally, the Australian government has emphasised the role of technology in reducing emissions, citing carbon capture and storage as a key solution for coal-fired power stations.
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Coal exports create jobs
The coal industry has a long history in Australia, dating back to the late 18th century. Australia became the number one coal exporter in 1984, and has remained a top exporter since. In 2016, Australia was the biggest net exporter of coal, with 32% of global exports. Australia exports the largest share of coal of any nation, with 54% of the total. The primary destinations for its coal exports are Asian countries, including Japan, Korea, India, and Taiwan.
Australia exports two types of coal: high-quality bituminous coal (black coal) and lower-quality lignite (brown coal). Black coal is mined in Queensland and New South Wales and is used for both domestic power generation and export. Lignite is mined in Victoria and South Australia and is of lower quality due to its high water content.
While there is a global push to reduce coal consumption to meet emissions goals, Australia continues to defend its coal industry, citing its contribution to the economy and energy security. However, critics argue that Australia's allegiance to fossil fuels has hindered progress in renewable energy development.
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Coal is used in industrial processes
Australia has a long history with coal, dating back to its first discovery in 1797. Since then, coal has played a significant role in the country's economy and energy sector. Coal is used in various industrial processes, and its impact on Australia's past and present is undeniable.
Additionally, coal is used in the production of alumina, chemicals, paper, machinery, and food manufacturing. Australian coal is in demand for process heat in these industries due to its high energy and low ash characteristics. This demand is particularly prominent in Asian countries, where modern, high-efficiency coal-fired power plants are being built.
The role of coal in the production of cement is also notable. While coal is used directly in high-heat industrial processes like steelmaking, it is also essential for creating the industrial chemicals needed for plastics and fertilizers.
Furthermore, coal has been an essential source of fuel for power stations, contributing to electricity generation in Australia. In 2017, coal was responsible for producing about 60% of the nation's electricity requirements, and it still provides around 65% of Australia's electricity as of 2023.
While coal has been integral to Australia's energy and industrial sectors, there is growing recognition of the need to reduce emissions associated with coal-fired power generation. Australia is witnessing the development and adoption of low emissions technologies, such as carbon capture and storage (CCS), to align with climate goals and ensure the sustainable use of coal in the future.
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Coal is in demand for process heat
Australia's high-grade metallurgical coals are among the best in the world for modern steelmaking. The country's supplier reliability, proximity to key markets, and good infrastructure availability put it in a strong position to take advantage of growing demand from customers in Japan, China, India, Taiwan, South Korea, and Europe, as well as newer buyers in Vietnam, Malaysia, the Philippines, and Thailand.
In 2017, coal was used to produce about 60% of Australia's electricity requirements. Coal-fired power still provides around 65% of the country's electricity and remains the most reliable form of power generation. Australia has argued that emissions reductions are possible alongside maintaining its critical resources sector. Indeed, emissions have fallen by well over 20% since 2005, even as its resources exports have grown.
However, coal is the fossil fuel that powered the Industrial Revolution in the 19th century and is still extensively used today in power generation and heavy industry due to its availability and low cost. Burning coal produces large amounts of CO2 and other pollutants, and phasing out unabated coal will be essential to meet net-zero emissions targets. The burning of coal accounts for the largest share of CO2 emissions globally, primarily in the power sector.
To address this issue, Australia is developing and adopting low-emissions technologies, such as carbon capture and storage (CCS), to ensure the future use of coal is aligned with the Paris Agreement. CO2CRC, Australia's leading carbon capture and storage research organization, has safely injected, monitored, and contained 95,000 tonnes of carbon dioxide over more than a decade.
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Frequently asked questions
Coal is Australia's second-largest export, generating $55 billion in 2020, and $63.9 billion in 2019. It provides jobs for over 50,000 Australians and supports the jobs of another 300,000.
Coal-fired power provides around 65% of Australia's electricity and is the most reliable form of power generation.
Australia exports coal to over 25 countries, including Asian countries like Japan, Korea, India, and Taiwan. These exports provide Australia with strong international relationships and influence.
Australia is at the forefront of carbon capture and storage (CCS) technology, which can reduce coal-fired power station emissions by 90% or more. This technology will help Australia continue to benefit from its coal resources while also meeting its climate goals.
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