Jakarta,- Coal prices have strengthened for two consecutive days amid increasing emphasis on the use of this 'black gold.'
According to Refinitiv, coal prices on Tuesday (5/20/2025) were recorded at $105.65/ton, up 2.57% compared to the closing price on May 19, 2025, which was $103/ton. This appreciation in coal prices has occurred for two consecutive days and may continue to rise in the coming days.
As reported by (link unavailable), South Africa remains committed to using coal as part of its energy mix while simultaneously upgrading its national grid to support the transition to renewable energy. Despite international pressure to reduce coal dependence, the country relies on coal for over 80% of its electricity needs and plans to maintain coal-fired power plants until 2050.
As part of its energy transition plan, South Africa intends to build 1,164 km of new transmission lines in 2026 to connect renewable energy projects to the national grid, addressing current constraints that prevent these projects from operating optimally. However, the project faces funding challenges, with a $21 billion investment needed for grid expansion, which is vital for the green energy transition.
Support for coal use is also seen in India, which views coal gasification as a significant step towards cleaner fuels and a greener industrial future. The Ministry of Coal has increased efforts to promote coal gasification as part of the government's policy to shift to cleaner fuels, greener technology, and a long-term vision for sustainable and inclusive growth.
Coal gasification converts solid coal into synthetic gas (syngas), a mixture of carbon monoxide, hydrogen, and carbon dioxide that can be used to produce cleaner fuels, chemicals like methanol and ammonia, and reduce emissions. This technology enables the conversion of coal into downstream products such as methanol, ammonium nitrate, synthetic natural gas (SNG), and fertilizers, supporting environmental sustainability and aligning with India's Vision 2047.
The government has approved an allocation of INR 8,500 crore as a financial incentive to promote coal gasification projects by both public sector undertakings and private companies. As part of this initiative, Coal India Limited and GAIL (India) Limited have signed a joint venture agreement to establish a Coal to Synthetic Natural Gas plant using surface coal gasification technology in the Raniganj area of West Bengal.
The plant is expected to produce 80,000 Nm³ per hour of SNG, with an annual production of 633.6 million Nm³, requiring a supply of 1.9 million tons of coal from Coal India Ltd.
Sources : www.cnbcindonesia.com May 21.25