Coal purchases from the Kentucky subsidiary of integrated energy company Duke Energy jumped 52,6% in June, when compared with May; and 39.9% when compared with the same period of a year before, state regulatory filings showed this Monday and S&P Global reported.
Firstly, total coal purchases from the company totaled 145,118 st in June 2021. According to S&P, the Duke Energy utility subsidiary told the Kentucky Public Service Commission it bought barge coal with an average heat content of 11,600 Btu/lb.
Secondly, it did so from three suppliers for its East Bend Station in Boone County, Kentucky, at an average delivered cost of $43.40/st in June; up slightly from the $43.18/st in May; and down from the $43.73/st in the same month a year ago.
Thirdly, the suppliers were the Central Coal Company’s Illinois Basin mine, from which Duke Energy bought 57,067 st of 11,195 Btu/lb, at a price of $40.31/st; it also bought 45,178 st of 11,181 Btu/lb coal from Knight Hawk Coal’s Illinois mine at $47.37/st. And finally bought additional 42,873 st of 12,582 Btu/lb coal came from Alliance Coal’s Tunnel Ridge mine in Ohio County, West Virginia, at $42.32/st.
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Coal use to increase 3% during 2021; IEA
Moreover, the coal burning of the company has also increased, the company’s East Bend station burned 167,206 st of coal, up from 125,338 st in May and 130,433 st burned in June 2020. In June, the company’s coal activities generated 360,958 MWh at a dispatch price of $20.60/MWh, compared with 250,711 MWh at a net dispatch price of $22.70/MWh in May and 311,397 MWh at $22/MWh in June 2020.
Consequently, the utility ended the month with its inventories at 125,926 st worth $5.52 million, or 23 days of supply; a downturn from the 148,014 st, or 37 days of supply after May; and also, down from the 253,223 st, or 58 days cover, after June 2020.
Finally, as we have reported previously, 2021 had an increase of coal use forecast by the International Energy Agency, back in late 20202. The forecast was for an increase of 3%, globally. Main factor for the increase were the intense use and demand from the metallurgical industry.
