May 23, 2020 Read More →

‘Harsh reality’ is that no one’s saved the coal industry

NS Energy:

When Murray Energy filed for bankruptcy in October 2019, it became the eighth US coal producer to do so in the space of 12 months, as the price of the fuel fell by 38% from a year earlier.

One of the latest casualties is Longview Power, which declared itself bankrupt on 14 April. Its financial troubles indicate the “increasingly dire state” of the country’s coal industry, according to IEEFA.

Longview’s primary asset is the 700-megawatt (MW) Longview Power Plant in Appalachian coal country near the city of Morgantown, West Virginia.

The IEEFA claims the plant has “much more going for it than most coal-fired plants in the US”, of which many are “far older, less efficient, and pay more to get their coal delivered”.

As it looks to shore up its long-term future, the bankrupt firm is now shifting its focus towards building a 1.2GW combined-cycle gas-fired facility and a 70MW utility-scale solar farm.

As for coal mines, following a drop in demand for the fuel, the number of active sites has plummeted from 1,435 in 2008 to 671 mines in 2017, according to the EIA.

[James Murray]

More: What is the Current State of the Coal Industry in the US?

Posted in: IEEFA In the News

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