Russell Banham, Deloitte CIS Energy and Resources, explains how Government support could unlock Russia’s vast export potential
Unlike its famed historical novels, Russia’s coal industry could, against all odds, have a happy ending. The coal industry may yet emerge from the shadow of natural gas to fulfill its potential thanks to the insatiable energy appetite of China. To reach this potential, investment needs to be made in infrastructure in order to nurture its efforts to compete against its rivals. But with emerging economies expected to drive a surge in global coal demand, the Government of Russia and private investors are starting to take notice.
The International Energy Agency (IEA) has predicted that a tripling in energy usage in emerging economies will cause global coal demand to increase by 60% from 2008 to 2035. The consumption of coal is growing faster than any other energy source, due to its importance as the primary electricity source in emerging markets. The most notable of these countries is China, which consumes almost every second tonne of coal produced globally.
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