A key trend at the 2021 twenty-sixth session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26), has been pledges from many countries to reduce emissions and move towards more renewable energy.

Moving away from fossil fuels, such as coal, towards renewable or clean energy on a global scale can assist in reducing emissions. However, in South Africa, the coal industry contributes significantly to the economy as well as to employment opportunities.

Coal producer and exporter Thungela CEO July Ndlovu explains that the industry employs around 8-million people globally across coal mining, processing, and delivery, with roughly 2.5-million people in coal power generation and associated networks.

In South Africa, coal mining employs about 90 000 people, accounting for roughly 20% of all mining jobs, excluding the indirect employment in the industries and businesses that support coal.

Ndlovu says that coal cannot be dismissed, despite its unpopularity, because it is an important part of the global energy mix and a critical enabler of economic growth.

“If it is going to be relegated, let it be based on technological advancement, not whether it is liked or not. The focus needs to be on ‘phasing-in’ new technologies not ‘phasing-out’ any fuel source,” he adds.

Owing to the multiple energy sources available, and used, globally, there is not one climate solution that will work for all countries or regions. Rather, all available energy sources must be used in a collaborative way to ensure reliable power.

Further, countries need to adhere to the Paris Agreement, specifically its requiring the use of “all clean technologies and cooperative action”. All fuels and all technologies, including ‘clean coal’, need to be available to achieve the clean energy transition.

Ndlovu says that coal is a critical energy source for billions of people and should form part of the climate change solution through the introduction and implementation of clean coal technologies.  

“Coal goes to the heart of sustainable development and everyone’s right to a decent quality of life,” says Ndlovu.

Coal is essential, especially for poverty stricken regions without access to electricity. It is an accessible source of heat, light and other necessities.

It also remains essential to electricity supply in more than 80 countries.

Ndlovu cites intergovernmental organisation International Energy Agency, which stated that by 2040, coal will remain the world’s largest, single source of electricity supplying 22% of the world’s population, and 39% of the South-East Asian population.

He elaborates that coal will continue to be needed and supported in countries which are still developing, such as across the Asian continent, and which require a stable, low-cost energy source to support the demands of their expanding consumer class.

“Governments, economic organisations and the wider investment community must coalesce around all energy sources and all clean energy technologies,” says Ndlovu.

Coal requires policies that provide equal support and funding for the industry’s success.

The deployment of clean coal technology is imperative to reaching a sustainable, zero-emissions future. “There are more than half-a-dozen clean coal technologies in existence, all of which are proven and successfully tested,” says Ndlovu.

Clean coal technologies include carbon capture, utilisation and storage technologies; coal to hydrogen; high-efficiency, low-emissions technology; coal gasification; combined cycle technology; coal to biomass co-combustion and pollution control technology.

There are challenges preventing the implementation of clean coal technologies, such as the high costs involved; however, Ndlovu explains that by investing in the technologies they can be deployed faster and their benefits can be realised.

He explains the role of coal in supporting renewables needs to be better understood for a robust global coal market to benefit the entire value chain which will “likely be driven by a generation of new coal players entering and educating the market”. Fragmentation across the coal value chain and geographies has undermined coal’s reputation and relevance.

“Several investors are already addressing this so-called ‘Coal IQ’ risk, and the need for a better understanding about coal and its sustainable development attributes,” says Ndlovu.

This will be particularly pertinent to the financing of coal projects where plants are relatively new, have a long commercial life, and where plants can be easily deployed with clean coal technologies.

As awareness grows about coal’s ability to help nurture the transition to a sustainable, net-zero economy, Thungela believes that investment in coal will continue because of the number of people who depend on it.

“Energy investment is not on track to reach net zero by 2050. For this to become a reality, spending on renewables would need to increase and the supply and demand of fossil fuels would need to decline in tandem, without severe economic consequences.

“Energy investment should not be an ‘either-or’ scenario but rather focus on how they work together. It will happen, but the pace at which it will happen will determine the consequences for the planet,” Ndlovu concludes.