Manchin does not need to help coal, it’s been getting a boost without any help. It’s at a ten year high right now. Natural gas rising to around $5.00 is helping coal prices.
Australian thermal coal at Newcastle Port, the benchmark for the vast Asian market, has climbed 106% this year to more than $166 per metric ton, according to the latest weekly assessment by commodity price provider Argus.
The Newcastle weekly index, which stood at a 2020 low of $46.18 in early September, now appears to be closing in on an all-time high of $195.20 from July 2008.
The resurgence of thermal coal, which is burned to generate electricity, raises serious questions about the so-called “energy transition.”
Last year, our government forecast more power from coal in 2021 and 2022.
As a result of the higher expected natural gas prices, the forecast share of electricity generation from coal rises from 20% in 2020 to about 24% in both 2021and 2022.
https://www.eia.gov/outlooks/steo/report/coal.php
I’m quite partial to hydrogen myself, even blue hydrogen with CCS technology using natural gas. But that seems to be out of the picture with natural gas prices at this level. Of course, green hydrogen is preferable, but not feasible in except in places like California which often has excess solar power from all the residential roof systems. Quite often, they pay Arizona to take it so it won’t overload the grid and cause bigger issues. The rising natural gas prices will be another hammer to pound Biden with. I can see the ads now. If we get a colder than average winter, it could spike further. When people in the Midwest have their heating bills double this winter, people are going to be cranky. It also means propane prices are going to go nuts again.
