The Outlook For Low Sulfur Coal Supply In Central Appalachia

Forecasts indicate that the acid rain bill currently before Congress is likely to cause an increase in demand of 30 to 40 million tons per year of compliance quality coal from Central Appalachia. This represents a doubling of this segment of the coal business. This paper will examine how this doubling can be met, what the likely implications for pricing are, the major uncertainties associated with these predictions, and the likely outcomes of the growth in compliance coal. Finally, some implications for fuel planners will be discussed.