Coal in Canada: A by-the-numbers look at the industry
As countries around the world look to reduce carbon emissions, Canada's coal business is hurting
Canada's coal production has been consistent overthe past decade, but a downturn in global demand is woundingthe industry.
Though Canada has maintainedsteady productioninrecent years, largely through exports, a decrease in demandfrom countries such as China has halted production in some Canadian coal mines.
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Canada's own consumption of coal has also decreased dramatically over the past decade. Meanwhile,worldwide coal consumption is under threat from the recently adopted Paris Agreement,as countries around the world look to reduce carbon emissions.
Here are some key figures regarding Canada's coal industry:
Canadian coal production
Canadian mines produced 69 million tonnes of coalduring 2014, according to Natural Resources Canada.
Over the past 10 years, Canada's coal production has remained steady, hovering at 67 to 69 million tonnes of coal produced per year.
Canada's coal production peaked in 1997, when the country produced approximately 78 million tonnes.
This production total is split almost evenly between the two primary forms of coal: coking coal, used in the production of steel, and thermal coal, used to produce electricity.
Kevin Stone, a senior adviser in the minerals and metals sector with Natural Resources Canada, predicts thermal coal demand willdecline overthe long-term.
"After 2025, there are two different stories. On the thermal side, we might see some downsizing because of the recent commitment in Paris," he said. "A lot of countries restricted coal use. We will see thermal coalgradually going down."
But Stone said he believescoking coal production is more likely to remain stable.
"[For]coking coal, I do not see significant decrease because in the global economy, steel is a key part," he said.
Exports
Canada exported 39.1 million tonnes of coal in 2013 the most in the country'shistory. This was driven by a high global demand for coal.
Stone said that the downturn is tied to China.
"The Chinese economy is not doing well. They're restricting everything. That's dragging the global economy down."
But Stone also said he is optimistic that the global coal market will rebound.
"I would say that, in the next threeyears, global coal production and export and trade will return to normal."
Canadian coal consumption
Canada consumed approximately 41 million tonnes of coal in 2014, 35 million tonnes of which was used for power generation.
Canada's coal consumption has decreased by42 per cent since 2005, when Canada used 60 million tonnes of coal 52 million tonnes of which wasfor power generation.
The decrease is a result of Canada, particularly Ontario, phasing out coal-fired power plants.
Provincial breakdown
Coal remains a key part ofenergy production for some Canadian provinces. However, the majoritydo not use coal for energy or have plans to reduce coal usage.
A breakdown of how big of a role the coal industry plays in each Canadian province:
Ontario
- In 2003, the province committed to phasing out all coal consumption by the end of 2014.
- Coal made up 25 per centof the province's power generation in 2003, which successfully felldown to zeroin 2014, according to the Government of Ontario.
Alberta
- According to the Alberta Utilities Commission,55 per centof Alberta's electricity came from coal in 2014.
- The provincecurrently operates 18 coal-fired power plants.
- About 33.8 million tonnes of coal were producedin 2014(24.1thermaland9.8 coking),according to Alberta Energy.This represents just under half (49%)of Canada's coal production.
- The province plans to phase out coalpower by 2030.
British Columbia
- An estimated 28.3 million tonnes of coal wereproduced in 2014, according to B.C.'s Ministry of Energy and Mines. This figure represents approximately41 per centof Canada's coalproduction.
- About70 to 90 per cent of the province's coal production is steel-producing coking coal, according to the Government of British Columbia.
- The province does not utilize coal for power generation.
Saskatchewan
- The province produces roughly 10 million tonnes of coal per year, according to the Government of Saskatchewan.
- Around44 per centof Saskatchewan'senergy came from coal in 2014, according to SaskPower.
- Saskatchewan has no plans to phase out coal entirely, but is working toretrofit existing coal plants to include carbon capture and storage a "clean coal" technology.
Nova Scotia
- About 60 per centof the province's energy production was derived from coal in 2014, according to Nova Scotia Power.
- Nova Scotia has plans to move to cleaner energy sources.Whilethe province has an agreement with federal government to keep the province's coal plants running longer than federally mandated, caps are set in place to reduce greenhouse emissionsover the next 15 years.
New Brunswick
- About 13 per centof NewBrunswick's power was generated by single coal-fired plant (Belledune) in 2014, according to NB Power.
- There is no concrete plan in place to close theBelledune plant, though a federal government mandate has it slated to close by 2043.
Manitoba
- Coal-energy use in Manitoba islimited toemergency production. Coal represents less than 0.1 per centofthe province's total energy production, according to the Government of Manitoba.
- There areplans to phase out coal for home space heating by June 30, 2017.
The remainder of Canada'sprovinces and territories Quebec, Prince Edward Island, Newfoundland and Labrador, Nunavut, Northwest Territories and Yukon do not use coal-fired power generation and do not produce a substantial percentageof Canadian coal.