US Coal Use High As China Falls
According to an analysis by Semafor, coal use is falling in China, but not the US. However, data collected by the AP may contradict this. The AP writes, “Approvals for new coal-fired power plants in China dropped sharply in the first half of this year, according to an analysis released Tuesday, after a flurry of permits in the previous two years raised concern about the government’s commitment to limiting climate change.” China had made a huge advance in renewable energy, based on a sharp rise in construction of nuclear facilities, solar and wind.
The Wall Street Journal described why coal use has not started to sunset in the US, or is it likely to. “After 15 years of relatively flat power demand, projections of electricity use are surging. Companies are extending aging fossil-fuel plants to accommodate the expected hike in demand, which is undermining U.S. goals to cut carbon emissions.” This is driven by the massive amounts of energy required by AI and Bitcoin mining.
Goldmans Sachs View
Goldman Sachs expects AI electricity consumption alone will drive total data center power requirements up by 160% in the US by 2030. The investment bank also reports, “Along the way, the carbon dioxide emissions of data centers may more than double between 2022 and 2030.”
Another indication from most of this research is that if China makes a big move into AI, its renewable energy resources may not be adequate. That means it may need to return to a larger use of fossil fuels, the supply of which is still huge.
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