Monday, October 21, 2013

Coal supply problems in India show how fossil fuels require massive infrastructure

India and Coal Economy Collapse | The Energy Collective: "To understand the depth and extent of the Indian coal bubble you have to first understand the country's unique problem: Despite sitting on the world’s 5thlargest supply of coal it can't secure affordable coal supplies. That's because the country can't mine coal fast enough, and has failed to expand transportation infrastructure (largely railways) to move coal where it needs to be (the power plants). The resulting supply crunch is so acute that power plants operators and Coal India have fought for years over 'Fuel Supply Agreements' while scores of coal plant developers have moved to India's coastline to bypass domestic supply problems in favor of expensive imports. In sum, this supply crunch is structural, and it's not going away anytime soon."
Fossil fuels are only profitable with huge fixed asset investment in infrastructure to support them. This infrastructure locks us in to fossil fuel usage and creates a crash when they peak.

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