The rate of coal consumption at UK thermal power generators remains at its strongest for six years, with the country burning 3.55 million mt in August, up 40% on-year, according to data released Friday by the country's Department of Energy and Climate Change.
In the first eight months of 2012, UK thermal consumption at electricity generators rose to 35.1 million mt, up 37% on the year-earlier period, the DECC data showed.
According to a report by Deutsche Bank, also released Friday, a very large proportion of the increase in European coal demand is located in the UK, where coal-fired generation enjoys much wider profits than gas-fired plants.
COAL-TO-GAS SWITCHING EXPLAINS RISE
"Without the year-on-year increase in the UK's coal consumption, overall EU-27 consumption would have been flat in 2012," the Deutsche report said, adding that the rise in UK burn was explained by a "relatively large share of power generation that can be shifted between gas and coal-fired plants." Meanwhile, end-of-August UK power plant thermal coal stocks increased 6% on-month to 12.36 million mt, their highest since January, but 22% lower than a year earlier.
UK coal imports remained strong, with 3.65 million mt landing in the country during August, dipping 2% from September but 39% higher on-year, the DECC data showed.
In the first eight months of 2012, the UK had imported 29.73 million mt, up 29% on the corresponding year-earlier period.
