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Metallurgical Coal is Still Required

 

 

By Ben Beakes


May 30, 2023 - In a recent opinion published by the Charleston Gazette-Mail, Eric Engle claimed that there is no viable future for coal. Allow me to introduce you to metallurgical coal.


Metallurgical coal, often referred to as “met coal” or “coking coal” or “steel- making coal,” is a critical ingredient in the steel- making process. Met coal is heated to create coke. Coke is then used to produce the heat necessary to melt iron ore, which is used to make steel. In simple terms, met coal makes steel.


Our region is leading the nation in met coal production, according to the U.S. Energy Information Administration. Several leading coal producers believe in met coal so much that they have shifted their production to more closely become pure play met coal producers. They also created a new association, the Metallurgical Coal Producers Association, to advocate for the industry and highlight its opportunities.


Consider the products that need steel. Buildings and infrastructure, bridges, transportation, domestic appliances, automobiles, electrical equipment, mechanical equipment, cellphone towers, military equipment and much more are made with steel.


The World Steel Association states: “As populations grow and nations around the world seek to improve their standards of living, it is inevitable that the demand for steel will increase. Steel is critical simply because no other material has the same unique combination of strength, formability and versatility. New generations of steel continue to be developed that make it possible for manufacturers and builders to implement durable, lightweight designs. Going forward, materials that are ever stronger and meet higher environmental standards will be needed.”


Recently, Gov. Jim Justice announced that West Virginia’s exports grew by more than 20%. Further, he stated that this was the third consecutive year for export growth and that West Virginia’s rate of growth is outpacing the national average. According to the governor’s statement, coal was West Virginia’s most significant export product. In fact, of the U.S. met coal sold or consumed in 2022, nearly 75% was exported. According to the EIA, nearly 60% of all U.S. met coal exports traveled through the port of Norfolk, Virginia, and 17% through Baltimore. Our region is meeting the demands of the world.


Even the Biden administration agrees that we need more steel, as evidenced by its advocacy for and passage of the bipartisan Infrastructure Investment and Jobs Act. There is a realization in this nation and the world that we need to rebuild our infrastructure. We cannot build infrastructure without steel, and we cannot make steel without met coal.


Engle mentions that the use of wind turbines has tripled, as it relates to electricity generation. Guess what? According to the U.S. National Renewable Energy Laboratory, wind turbines are predominantly made of steel — between 66% and 69%, depending on the model. What about solar panels? They need steel, too. Even converting coal-fired power plants to natural gas requires more steel for pipelines. Perhaps we should be saying met coal makes net-zero?


Critics might point out that new technologies, like electric-arc furnaces, will replace the blast-furnace method of making steel. While these technologies exist, we are still decades away from mass production using different methods. Even at that, most need scrap steel for new processes to work.


Narrative does not change need. For the foreseeable future, met coal is needed across the world to produce the steel used to make products that advance our standard of living.


The future is bright for met coal.


Ben Beakes is president of the Metallurgical Coal Producers Association.