Global coal consumption is still on the up, despite climate concerns and green initiatives. While big consumers like the US are cutting back on coal use on home turf, CNBC reports that their exports are rising to meet mounting international demand.

Global usage hit an unprecedented high, reports the Global Energy Monitor, reaching 2.2k gigawatts of use in 2024, compared to 2.1k gigawatts in the previous year. Beyond power generation, total coal demand has reached a record 8.77 bn metric tons last year, up by 0.23 bn since 2023, with projections suggesting similar consumption levels through 2027.

China’s insatiable appetite for coal: Coal imports in China soared by 14.4% last year, reaching a historic 542.7 mn metric tons, which accounts for more than 56% of global demand. This reliance stems from multiple factors: weather-related hydropower shortfalls force increased coal usage, while infrastructure limitations complicate the transmission of renewable energy between provinces, despite abundant solar and wind potential in the region.

India seems to be following in their footsteps: Facing mounting electricity needs due to extreme weather, rapid urbanization, and industrial expansion, coal-intensive industries like cement and steel continue to expand as renewable energy development lags behind. Though the country recently extended its mandate for imported coal-based plants to operate at full capacity until 2025, it maintains an ambitious target of 50% renewable energy by 2030.

Zooming out: The global shift toward coal intensified after Russia’s invasion of Ukraine, as countries like China, India, and Vietnam scaled back gas-based power plants due to high prices. This has seen Vietnam’s imports hit record highs, Indonesia hit an unprecedented number of 831 mn metric tons of production, and the Philippines overtake China as Asia’s most coal-dependent nation.

How has Om El Donia fared? Egypt has consumed an annual average of 2.5 mn metric tons of coal since 2013 based on a 2024 report, with the construction industry taking the lion’s share. A study published in 2024 revealed that our coal consumption decreased by 0.01 [quadrillion] British thermal units (BTU) from 2021 to 2022, only 1.7% of total primary energy consumption in the country.

AI’s growing appetite: The rise of AI presents additional challenges to energy consumption. AI data centers’ electricity demand is projected to more than double by 2030 — the industry’s computational power demand doubling almost every 100 days according to the World Economic Forum — surpassing 35 GW, almost 4% of electricity use in the US as a whole. The US-China AI competition further drives the need for reliable, affordable power, making coal an increasingly challenging habit to kick.

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