By Melissa Pistilli-Exclusive to Coal Investing News

The International Energy Agency (IEA) released its World Energy Outlook report on Wednesday. The report predicts that global energy demand will increase by 45 per cent by 2030. In reaction to steadily rising demand, the agency is confident that coal will continue its role as the main source of power for much of the world at least until 2030 and will outshine all other energy sources.

Although the IEA has downgraded its previous 2030 world electricity demand forecast to 23,141 terawatt hours (TWh), the agency believes power supplied by coal will increase 44 per cent by 2015 up from 41 per cent in 2006. “Globally, coal-based electricity is projected to rise … to almost 14,600 TWh by 2030.”

Coal consumption around the world is likely to rise around two per cent a year on average to 7,011 million tonnes of coal equivalent in 2030. This is the largest percentage increase compared to all other energy sources.

Currently, coal is the second most used fuel after oil. As oil and gas prices rise, the agency anticipates coal-based energy becoming much more competitive with oil after 2015. By 2030, coal should account for 29 per cent of global energy demand, up from 26 per cent in 2006.

The majority of energy demand growth will mostly come from China, India, and also emerging Middle Eastern economies. China, whose energy demand doubled between 2000 and 2006, is quickly becoming the biggest electricity consumer on the planet.

In order to meet energy demands, the IEA reports global coal production will have to increase some 60 percent between now and 2030. China, presently a net exporter of coal, will be responsible for 66 percent of coal demand growth and will soon become a net importer. The IEA predicts that China’s coal imports could reach 88 million tonnes of coal equivalent by 2030.

India is expected to account for 19 per cent of global coal demand growth and its coal imports are projected to increase 7 per cent each year to 220 million tonnes of coal equivalent by 2030. Despite the global slowdown, Indian demand for coal remains robust. The Indian government has asked utilities to import as much as possible before March and tenders for over 10 million tonnes have been floated for imported coal,” said a C&O Group spokesman. Coastal Energy, a Dubai-based subsidiary of the C&O Group, asserts it coal trading business remains strong even in the face of dropping coal prices. ”

The World Energy Outlook report also highlights cumulative investment in coal supply infrastructure, which is forecasted to total $730 billion between 2007 and 2030. The IEA states 91 per cent of these expenditures will consist of mine investments.

Goldsource Mines: “Good Quality” thermal coal

Tuesday, Goldsource Mines Inc.[TSX.V: GXS], a Canadian natural resource company, reported results from 213 coal samples taken from nine drill holes on the Durango Coal Seam located on the company’s Border Coal property in Saskatchewan. Goldsource states the results confirm the seam consists of “good quality” thermal coal, which is principally used for generating power.

“We are excited by the overall results of this summer’s program in that they demonstrate we have a near-surface thermal coal deposit that currently averages about 20 metres in thickness with good calorific values, low ash content and low to moderate sulphur content,” said Golsdource President J. Scott Drever.

Goldsource is in the advanced stages of preparation for a winter drill program that will aid in further defining the resource in the discovery zone as well as assist in exploring other potential zones in the permit area. The company expects to receive approval for its exploration program from the Ministry of Environment of Saskatchewan between mid-December and mid-January.

On Wednesday, shares of Goldsource were trading at $1.17, down from a 52-week high of $19.60 reached in June of this year.

3 Comments

Tweet