U.S. Coal-Fired Power Revs Up Maintenance as Demand Surges

U.S. power-generation companies that use coal as a resource are enjoying a surge in demand, reports Industrial Info Resources, a leading provider of global marketing intelligence. A massive energy crunch is sending prices for natural gas — coal's biggest competitor — to unforeseen highs. While power generators realize that coal's long-term prospects as an energy feedstock face a likely insurmountable structural disadvantage, they will need to keep their coal-based facilities in the best possible shape to handle rising demand — at least in the near-term.

Despite aggressive decarbonization efforts from federal, state and corporate authorities, U.S. coal production is expected to increase 3.9% this year and another 2.1% in 2023. Energy-related emissions of carbon dioxide (CO₂) are forecast to increase 1.3% this year, though that is expected to reverse by next year, according to the U.S. Energy Information Administration.

Industrial Info is tracking approximately 40 maintenance-related projects at U.S. coal-fired power plants that are set to begin in the second half of 2022. Leading power-generation companies such as Xcel Energy, Duke Energy and American Electric Power Company plan to continue closing their coal-fired facilities in the coming years but are preparing to maintain their remaining plants to address the current spike in coal-energy demand.