Despite the heightened emphasis on eco-friendly energy substitutes, the escalating demand for coal due to its affordability and ease of transport and storage solidifies its growth projections.
Given this backdrop, investing in fundamentally strong coal stocks Warrior Met Coal, Inc. (HCC – Get Rating), Hallador Energy Company (HNRG – Get Rating), and CONSOL Energy Inc. (CEIX – Get Rating) with swift momentum potential could be wise.
Before delving into the fundamentals of the stocks, it’s first essential to understand the factors currently molding the landscape of the coal industry.
Several countries have embarked on extensive climate strategies to eradicate coal within the upcoming years. Nevertheless, the ongoing gas shortages and the slow growth in renewable energy capacity underscore that coal remains an indispensable resource for power generation and industrial usage in several regions.
Despite its unswerving reliability as a power source, coal is the preeminent contributor to carbon dioxide emissions. Accordingly, the ongoing endeavors by top global nations to supplant coal with renewable energy sources are anticipated to usher in a steady and drawn-out decline in coal consumption in the foreseeable future. However, this transition is slow.
Despite the climate pledges invoked by several key global entities, overcoming coal reliance could be a daunting task, as consumption could scale to an unprecedented height again.
As per the International Energy Agency, investments in world coal production and supply are expected to rise about 10% to $150 billion in 2023. Roughly 90% of this investment is projected to be concentrated in the Asia Pacific region, particularly in China and India, where both nations have aimed at broadening production and inaugurating new coal mines.
Moreover, as these two nations carry the largest populations worldwide, the impending need to satiate rapidly escalating power demands is forecasted to…
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