China Slashes Dirty Coal Usage by 40%: Wood Mackenzie

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Coal

A report from energy research firm Wood Mackenzie shows that China has significantly reduced the use of dirty coal as part of its efforts to clean up air quality, CNBC reported.

The use of low-quality coal, known as sanmei, in the world’s most populous country is expected to drop to 469 million tons this year, compared to 774 million tons in 2012. Over 80%, or 650 million tons of that coal, was used in the industrial sector in 2012.

Sanmei is a low-quality coal that mainly used in heating.

Coal in China

China is the largest producer and consumer of coal in the world and is the largest user of electricity produced using coal. It ranks third in the world in terms of total coal reserves behind the United States and Russia.

Wood Mackenzie estimates that the use of industrial sanmei would reduce to 191 million tons by 2025 from 650 million tons in 2012. By 2035, the use of the dirty coal is expected to fall to 100 million tons, according to the firm.

China has been trying to emerge as a services-oriented economy – moving away from the title of a manufacturing-oriented economy.

In April 2016, the National Energy Administration issued a directive banning construction of new coal-fired power plants in many parts of the country. In January this year, the authority canceled a total of 103 coal power plants despite the resistance of local authorities.

The biggest Chinese coal and mining companies include China Shenhua Energy Company Limited (HKG:1088), China Coal Energy Company Limited (HKG:1898), Zijin Mining Group Co Ltd. (HKG:2899) and China Northern Rare Earth Gp H-T Co Ltd (SHA:600111).

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