Sechin says the world is entering a new coal era

A new coal era is underway, thanks in part to the high energy return on investment in fossil fuels, Rosneft CEO Igor Sechin told the Verona Eurasian Economic Forum in Ras al-Khaimah, UAE, on December 5.

"Experienced investors have returned to coal. In fact, we are witnessing the advent of a new coal era," he noted.

According to him, the energy transition requires a restructuring of the real economy, not the virtual economy. Increasing the share of generation using renewable energy sources requires early resolution of problems related to the stable operation of power grids, creation of electricity storage capacity and smoothing out consumption peaks, Sechin emphasized.

In particular, China, which is the world leader in renewable generation, is simultaneously breaking records in commissioning coal-fired capacity due to the high cost of renewable energy sources. Thus, over the past 10 years, China, being a leader in wind and solar energy, has increased coal-fired generation capacity by more than 350 gigawatts, or 45%, he noted.

Earlier, on September 17, Alexander Daniltsev, director of the Trade Policy Institute of the National Research University Higher School of Economics, told Izvestia that coal has always been an important commodity for Russia, and the demand for it in the countries remains. According to him, first of all, Russian coal is in demand in Asia. At the same time, on November 15, Deputy Prime Minister Alexander Novak said that Russia is ready to increase coal supplies to China. In addition, the export of Russian coal to China by the end of 2023 exceeded 100 million tons.

Before that, on August 25, Russian President Vladimir Putin said that the coal industry still has great prospects for development. The well-being of the country's future largely depends on its growth and success, he added.