Steam coal is a thermal coal primarily used for electric power production and heat generation. It is used as a fine powder and fired into boilers in power plants to run steam turbines, as it burns quickly at high temperature. Steam coal is also employed during calcination operation in cement manufacturing. It has high moisture content, low ash content, and less than 1% of sulfur.
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Steam Coal Market: Key Segments
The global steam coal market can be segmented based on calorific value and volatility. Based on calorific value, the market can be bifurcated into low calorific range with calorific value between 5,500 kcal/kg and 6,000 kcal/kg, and high calorific range between 6,100 kcal/kg and 6,700 kcal/kg. Based on volatility, the market can be segregated into high volatile coal, medium volatile coal, and low volatile coal.
Steam Coal Market: Trends & Demands
Coal plays a vital role in electricity generation across the globe. Approximately 37% of the global electricity is generated through coal power plants. Steam coal has high surface area and burns quickly at high temperature to produce up to 400,000 volts of electricity. Rise in requirement of large amount of energy for the production of cement for the building & construction industry is boosting the demand for steam coal across the globe. These factors are acting as driving forces of the global steam coal market. Advent of new technologies and environmental concerns regarding usage of non-renewable sources are expected to hamper the demand for steam coal in the energy sector in the near future. Increase in preference of renewable energy sources of power generation in various countries such as the U.S. and Germany is also estimated to restrain the steam coal market during the forecast period. However, upcoming technologies such as carbon storage/sequestration and coal liquefaction & gasification are projected to provide lucrative opportunities to players operating in the steam coal market.
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