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Highlights
- Global coal power generation is anticipated to rise by 9 per cent to a record high of 10,350 TWh in 2021 due to a speedy economic recovery.
- The IEA said overall coal demand may touch new all-time highs by 2022 and stay at such high levels for the next 2 years.
Global coal power generation is anticipated to rise by 9 per cent to a record high of 10,350 TWh hours in 2021, due to a speedy economic recovery, according to the latest Coal 2021 report by the International Energy Agency (IEA).
This surge is due to an increased electricity demand which is growing at a much faster pace than the amount that can be supplied from low carbon sources.
Also, the global overall coal demand, inclusive of other sectors like cement and steel production, is expected to rise by 6 per cent this year, as per the report.
Overall coal demand may touch new all-time highs by 2022 and continue at such elevated levels for the next 2 years, thus indicating the immediate requirement for taking strong policy action to help manage coal-related emissions, said the IEA.
China’s coal demand is forecasted to rise by 9 per cent in 2021. It accounts for over 50 per cent of the global coal-powered electricity generation. Meanwhile, India’s coal demand is expected to rise by 12 per cent, while the US and EU’s demand for coal is forecast to increase by 20 per cent.
Let us take a look at 2 FTSE listed coal mining stocks and see how they are placed amid the latest development:
- Oracle Power PLC (LON: ORCP)
Oracle Power is a natural resource developer involved in the development of gold, coal and various other areas. One of the company’s projects is a coal development project in the Thar region in the south-east of Pakistan.
It is also a part of the FTSE AIM All-Share index.
The group recently completed a preliminary technical study for a green hydrogen production facility in Pakistan. Green hydrogen is considered a key fuel source for various power generation industries. The project targets a 400MW capacity for the plant and a production of about 150 thousand kg/ day.
Image source: EODHD/Others
As seen in the above EODHD/Others chart, Oracle’s shares were trading at GBX 0.42, down by 4.55 per cent on 17 December at 10:26 AM BST, while the FTSE AIM All-Share index was at 1,160.81, down by 0.55 per cent.
The group’s market cap stood at £ 11.49 million as of 17 December.
- Bisichi PLC (LON:BISI)
Bisichi is a coal mining company and is listed on the main market.
The group’s earnings before interest, tax, depreciation and amortisation (EBITDA), for the six months ending 30 June, stood at £1.03 million, thereby reversing from a loss in the previous year, where its EBITDA was at £0.35 million.
Its total production during the period stood at 553,000 tonnes, compared to 580,000 tonnes in the same period last year.
Image source: EODHD/Others
As seen in the above EODHD/Others chart, Bisichi’s shares were trading flat at GBX 90 on 17 December at 10:49 AM BST.
The group’s market cap stood at £9.61 million, and a one-year return was 53.85 per cent as of 17 December.
