The share of coal-fired electricity generation in the United
States has been on the decline over the last few years. Recent
reports estimate that over 9 GW of coal-fired power capacity
retired in 2012, which is likely to be the single largest annual
retirement of coal capacity in U.S. history. Additionally, as
much as 60 GW or nearly 20% of coal-fired generation capacity
could be shut down across the country over the next few years.
This decline in coal-fired generation is likely to dent thermal
coal demand in the U.S. in the coming years and could impact
Alpha Natural Resources (NYSE: ANR), one of the largest coal
producers in the country. Here we explore the firm’s exposure to
the thermal coal market and look at its opportunities in the
export market. Why Is There A Decline In Coal-Fired Capacity?
Environmental regulations for power plants have become more
stringent, stipulating the reduction of heavy metals and acidic
gas emissions. To comply with these standards requires coal-
fired power plants to instal