The FutureCoal Journey starts now

Michelle Manook, Chief Executive Officer FutureCoal

2023 will be remembered as the year when the global coal industry audaciously embraced transformative change.

Commenting as the now Chief Executive of ‘FutureCoal: The Global Alliance for Sustainable Coal,’ I’m proud to say this feat was only accomplished because of a dedicated and committed group of global members, who led the charge on behalf of the entire coal value chain.

Having spent nearly three decades in the fossil fuel, energy, and mining sectors, I can’t help but feel the significance of rebranding the World Coal Association’s 38-year legacy to FutureCoal. Like all things coal, it came with the expected criticism. But in the two largest coal economies, China and India, it was met with overwhelming support, signalling a new beginning. This support serves as a powerful reminder that progress can be achieved when the global coal value chain operates with self-belief and unity.

In May 2023, our now FutureCoal Board approved this reset, and just six months later, on 20 November, we launched the new organisation in New Delhi, India.

In my October/November pre-launch roadshows with high-ranking officials in both Chinese and Indian governments and the captains of industry, spanning the mining, power, steel and cement sectors, our shared vision for a unified alliance was endorsed. For these stakeholders, the only global organisation representing coal now reflected and acknowledged their vision.

FutureCoal is intended to reflect a forward-thinking approach while acknowledging our continued involvement with coal. There is no denial or defensiveness. Just ‘coal clarity’. It speaks to the reality of coal’s contribution to our future modern society, even beyond its traditional uses and its commitment to sustainability.

This is captured and underpinned by what we term Sustainable Coal Stewardship (SCS) - a pathway that supports extracting more value per tonne of coal. But when we speak of ‘value’, we speak in both economic and environmental terms because these are not mutually exclusive events for coal and its allied sectors.

SCS describes an intent, approach, and a much broader definition of the abatement opportunities beyond CO2 It is a roadmap that the entire coal value chain can embrace to modernise and transform their coal and allied businesses (i.e., power, steel, cement, chemicals, fertilisers, coal abatement technologists, etc.), to meet the environmental expectations and advance needs of our interconnected and global society.

SCS also emphasises pragmatism, rationality, and objectivity in its approach to achieving a sustainable coal value chain, ensuring that we are realistic and not undermining the very goals we set out to achieve.

FutureCoal is intended to reflect a forward-thinking approach while acknowledging our continued involvement with coal. There is no denial or defensiveness. Just ‘coal clarity’.

Two roads diverge

When I initially joined this organisation, I encountered an industry in shock – a deer in the headlights, if you will. We were at a crossroads. We could not believe how we had arrived at this vilified place. We were unsure how to proceed.

Despite this uncertainty, in November 2019, we did settle on a direction and strategy titled Evolving Coal 2020-2025. This strategy allowed us to proceed, one logical and unemotional step at a time.

As I think about our journey, I am reminded of a parallel I drew between the less-travelled road (coal) and the more common ‘renewable road’ taken by countries predominantly in the Global North. These countries opted for a popular, well-travelled route: renewables and coal plant closure. Yet they encountered energy security and supply concerns without the agility to respond to the reality of events unfolding. This further highlighted the vulnerabilities that ensue from restrictive and singular policies that ignore the importance of baseload, affordable and diverse energy sources.

I emphasised the importance of making informed and thoughtful choices. So, following the less-travelled path included all fuels and technologies, a perspective we've been advocating for over four years through Evolving Coal.

We conveyed the message that eliminating coal is neither feasible nor a solution.

Robert Frost provides an excellent metaphor for many of life’s contemplations. In the emerging and developing markets, this fork in the road - choosing the diverging path, is caught in a delicate dance around energy politics and the need for coal not just to survive but thrive if it is to deliver the economic prosperity and environmental stewardship many seek.

A New Perspective – The Global Coal Ecosystem

FutureCoal is about ushering in a new era that better represents the economic development and growth ambitions of coal-based economies and those who support them. There is no differentiation across the value chain.

It responds to research conducted under Evolving Coal with Members, prospective Members, and government and finance stakeholders across the coal value chain in all key coal markets.

It became very clear that our organisation was still entrusted with preserving the coal legacy but that the organisation of the past had to change and be more representative of an integrated coal future.

And so, the FutureCoal organisation was born, uniting coal and allied sector stakeholders as a Global Alliance of coal value chain participants representing thermal, metallurgical, renewable supply chains and coal innovation sectors.

Corporate Members and national industry partners are based in major coal economies and markets, including Australia, Botswana, Brazil, Canada, China, Colombia, India, Indonesia, Japan, Mongolia, New Zealand, South Africa, Russia, the United States, and Zimbabwe.

As an integrated coal value chain, we understand that our role is to facilitate and deliver on economic and environmental goals. We firmly believe that coal can significantly contribute to these goals when used responsibly and sustainably.

As stated before, this, underpinned by our Sustainable Coal Stewardship, captures a more comprehensive perspective on the opportunities available to the coal value chain from the pre-combustion state through combustion and into its beyond combustion phase for revitalising and reshaping coal to meet the evolving needs of our global society.

Our philosophy acknowledges the existence and further development of a comprehensive coal ecosystem, encompassing efficiency, process enhancements, safety, emissions reduction, waste management, land rehabilitation, technological innovation, and more.

Questioning the Reality

For those of you who follow any of our speeches and social media posts, you will know that my aim has never been to get people to LIKE coal. I have always believed, and still maintain, that our responsibility is to ensure the global community understand why they NEED coal. But not coal as it was. We are supporters of PHASING IN a new abated coal era.

However, as mentioned, abating coal is much more than just CCS/CCUS. We know it is a wider range of processes and technologies that get us closer to achieving our goals.

Today, our global community is confronted with issues of energy affordability, reliability, and security. They increasingly recognise coal as a critical input into many of the modern conveniences they enjoy. They are starting to understand the significant economic contributions it makes. They are learning how it supports renewables.

They are also being challenged about coal’s legitimate role in the energy transition, given the existence of abated coal solutions and technologies. This is about coal’s role as a real-world provider and supporter.

The world-wide positive and neutral media response following our rebrand launch to ‘FutureCoal’ has spanned hundreds of millions of impressions across global publications. What has become apparent is that the naysayers were few and predictable. Their narrative has not moved on, but ours has.

I believe this is because FutureCoal, and previously, the World Coal Association, never shied away from confronting reality, as we are grounded in the facts and acknowledge where we are in our transition.

But let’s not fool ourselves. This recognition is reluctant. It will be resisted until hard reality checks can no longer be ignored and there is nowhere else to point fingers. The timing of this is yet to be determined as a significant amount of vested interest remains in maintaining the mostly Global North energy transition mantra.

As we pen this article for this Yearbook, COP28 is imminent. The special envoys have been deployed along with the media to lobby for eliminating coal and fossil fuels. Interestingly, this comes from many who have brought back coal to deal with their energy security and reliability concerns.

Does the hypocrisy seem stark?

It does, but we are reminded that many reputations and billions of subsidies and investments are at stake. Some of this is coming to the fore, as we have already seen in Sweden, Germany, and the UK. McKinsey’s 2022 report titled "The net-zero transition” estimates that achieving a net-zero economy by 2050 would cost US$275 trillion, or approximately US$9.2 trillion annually, impacting every sector and timeframe. If we are to believe this statement, then shifting gears to the realities has never been more critical.

As we called it in our widely internationally read op-ed titled "Energy Debate Falling into an Alternate Reality", published by The Australian, the blurred lines between fact and fiction in the energy discourse highlighted an unjust depiction of coal which serves no purpose but to hold us all back – economically and environmentally.

It’s time for sense and balance. Frankly, we are long overdue.

The Future for Coal is Now

Looking at the path we have taken and what is unfolding around the world, the challenge of perceptions and misperceptions, the opportunity for the global coal value chain is now.

FutureCoal will provide a differentiated platform for visible and responsible coal participants. A platform where the value chain members now own and navigate the narrative to better inform the market.

It will:

• enable new co-operations and collaborations to advance coal abatement technologies and advance coal beyond its known traditional uses

• unite value chain players, including governments and the finance and investment sectors, in a common and strategic purpose - sharing opportunities and risks

• support the modernisation of a sustainable coal industry to tackle the world’s biggest challenges, including energy poverty, affordable electricity, food security, water scarcity and urbanisation

• reduce the scarcity of critical minerals that are essential for the development and functioning of many modern technologies, such as renewable energy, electric vehicles, aerospace, defence, and healthcare.

• go forward with the vision that every person deserves the opportunity to live well in the modern age What will be FutureCoal’s legacy? For my part, I hope it is full of courage and demonstration. A sophisticated coal collective delivering a sustainable coal future. This is the most responsible, long-lasting impact we can have. 