Coal powers our nation’s energy companies and is an essential raw material in the steel and iron industries. However, you may be a company that needs smaller amounts of coal for its heat producing properties. Or, you may need a by-product of coal for manufacturing plastics, synthetic fibers, fertilizers, medicines and other products. The price of coal, energy output, and how clean each type burns are factors to consider.
Coal is classified into four main types by the amount or carbon it contains and the amount of heat energy it produces. You'll need to identify the type of coal you need, process it and transport it to your company’s location. Here are the types of coal available for consideration:
1. Lignite has a low energy content and is mainly burned at power plants.
2. Bituminous is the most abundant type of coal, mined mostly in West Virginia, Kentucky, and Pennsylvania.
3. Subbituminous coal, produced mainly in North Dakota and Wyoming, accounts for a large portion of the U.S. coal industry.
4. Anthracite is used commercially in manufacturing and chemical industries.
Action Steps
The best contacts and resources to help you get it done
Find producers of lignite and bituminous coal
Lignite and bituminous coal are mined around the Appalachian mountains of the U.S. These types of high BTU coal are used for generating electricity, and as a raw material in the iron and steel industries.
I recommend: Consol Energy is the largest bituminous coal manufacturer in the country, operating 17 mining complexes in six states. Check if they have a mining operation near your company to reduce transportation costs.
Arch Coal is one of the largest coal distributors in the U.S. You can select a specific mining operation to see what method of transportation they use.
Identify subbituminous coal suppliers
Subbituminous coal manufacturers are mainly located in the mountain states of North Dakota, Wyoming and Montana. This type of coal contains more carbon than lignite but less than bituminous. It can also burn cleaner and produce less sulfur.
I recommend: Union Pacific has a directory of high BTU mines operating in Southern Wyoming which produce subbituminous coal.
Westmoreland Coal Company has several mining operations in Wyoming and Montana. They have sales offices in Colorado and Minnesota to serve customers across the country.
Locate anthracite coal producers
Anthracite coal has the highest carbon content of any type. Mined primarily in the Northeast and Midwest, anthracite is mainly used for domestic fuel and industrial applications. The anthracite coal price can be high, but it is also very energy efficient.
I recommend: Reading Anthracite has numerous dealers across the Northeast and Midwest. They sell coal to clients with many needs, like heating, metallurgical refining, power plant fuel and water purification.
Penn Keystone Coal is one of the biggest coal producers in the east, selling up to 23 tons of hard or soft coal to anyone from New England to North Carolina.
Keep track of the price of coal
If your business purchases and trades coal or coal stocks, the price of coal is very important. It fluctuates as often as the price of oil or any other commodity. You need someone with expert advice on what the coal market will do.
I recommend: The
Energy Information Administration provides the current import and export prices of coal, including steam coal and coking coal.
Global Insight offers multiple services to track coal prices, including monthly and quarterly analyses.
Tips & Tactics
Helpful advice for making the most of this Guide
- Buy anthracite or other high-carbon types of coal one you can afford it. It's more energy efficient and will help you meet environmental regulations.
The official source of Coal is the Coal page at Business.com