Metallurgy will be the last industry to move away from coal
In 2024, Katowice hosted one of the largest business events in Central Europe – the 16th European Economic Congress. It was attended by 17,000 participants – both stationary and online. There were as many as 180 debates, and 1,200 speakers. Among them were representatives of companies from the coal sector or related to it. An important topic was the future of coke and coking coal.
What is the importance of coking coal to the industry?
An important area of the economy that is closely linked to coking coal is, of course, the steel industry. Not only is coking coal irreplaceable, but also blast furnace coke. Both raw materials are used during the reduction of iron ore, which results in pig iron. This process requires reaching, as well as maintaining, the right temperature to allow the charge to melt, as well as for endothermic reactions to take place. These fuels, especially coke, guarantee high calorific value, which is desirable during combustion – this translates into low emissions, which determines that it is an ecological solution.
Steel is a material that is of great importance to the economic development of the world. Every infrastructure project requires the use of significant amounts of steel, which is widely used in all activities of the economy. Sectors such as construction, infrastructure, automotive and engineering are the most important for steel consumption. For this reason, coking coal itself is also important in terms of development.
What is the future of coking coal in Poland?
European coking coal production is based on two countries: Poland and the Czech Republic, with Poland being the undisputed leader in this regard. The key destination for coal is precisely the steel industry. For this reason, discussions about the future of coking coal are linked to the future of the steel sector precisely. World steel production in 2023 exceeded 2 billion tons – the leader in this case is China, which accounts for half of the raw material produced. However, steel consumption in Poland is declining: in 2021 it was 30 million tons, in 2022 it was more than 15 million tons, and in 2023 – 11.1 million tons. Experts say that the effect of this is, among other things, a smaller amount of finished housing that has been completed. Nevertheless, predictions for the next few years are favorable in terms of steel consumption – demand for this raw material is expected to increase by up to 30%, which will also translate into the popularity of coking coal.
Experts also point to advances that are expected to affect the coal industry. They are talking about a potential move away from coal during steel production and replacing it with methods that will use hydrogen. A second alternative is furnaces that use electricity to provide the right temperature. In their view, however, this is a melody of the future that will not become a reality anytime soon. The new technologies are only at the research stage, and it will still take a considerable amount of time before companies start using them in steelmaking. Metallurgy will be the last to abandon coking coal, as even electric furnaces will require the presence of coal. Experts say it is a critical raw material that will be necessary for steelmaking for many years to come. This is also not changed by the direction of changes in the industry aimed at green energy – the production of windmills or photovoltaic farms requires significant amounts of steel, so it is currently impossible to pursue the energy transition without coking coal and the product derived from it – blast furnace coke.
As experts note, in recent years, the policy of those in power regarding steel production, as well as its import, has changed. According to representatives of steel industry companies, 20 years ago, steel consumption was 60% met from own production. Today, this situation has reversed dramatically – 88% of the steel consumed is imported. In 2022, more than 11 million steel will be imported, while almost 2 times less will be produced.