China

China is the world’s most populous country and currently the second largest energy consumer after the United States. Chinese demand for energy is forecast to grow at 4.4% p.a. through to 2020, with much of this increase in demand to be satisfied by the domestic coal supply. Demand for coal, on which China relies for ~70% of its energy needs, has grown at more than 12% per annum since 2001, translating into approximately 2.4 billion tonnes of annual coal consumption.

Chart - China Energy by Fuel Supply

Chart - Installed Electricity Generation China

China’s reliance on coal is closely linked to the size of the abundant coal reserve. China has 114.5 billion tonnes of proven coal reserves, equivalent to nearly 13% of the world’s supply. Of this coal supply approximately 46%, or 52.3 billion tonnes, is low rank sub-bituminous or lignite coals. Through most of its history access to this reserve has ensured its energy independence, however a declining supply of accessible thermal coal and the closure of small independent mines has further exacerbated the demand supply imbalance.

The ability to improve the economic and environmental metrics associated with China’s large low rank, high moisture coal reserve represents a significant commercial opportunity.