Peabody Energy Chairman and Chief Executive Officer Gregory Boyce highlights long-term coal growth in Asia-Pacific markets and enormous progress being made to advance clean coal technologies in an exclusive interview on CNBC's Squawk Box with Erin Burnett and Mark Haines.
You can see video from Boyce's CNBC interview at: http://www.executiveinterviews.net/players/mini/default.asp?order=U12957
"We think there is going to be a new age for new coal," says Boyce. "When you look at energy demand globally, we need all types of fuel in the energy mix. We need to build new coal facilities. They are being built around the world at a record pace.
"The numbers globally for electricity demand are staggering when you look at today's forecast. That still assumes that more than half of the world's population does not have access to low-cost, affordable electricity."
Boyce says that China and India are driving strong demand for thermal and metallurgical coal in the Asia-Pacific region that is expected to increase at a 7.5 percent compound annual growth rate over the next five years or more.
China, the fastest-growing coal market in the world, has imported coal at a record pace through the first eight months of last year as it advances infrastructure development through its stimulus program. India is the fastest-growing importer of coal and will require as much as 200 million tons of coal per year within five years. Both economies are driving strong GDP growth that is expected to increase next year.
Globally, Boyce notes that carbon capture and storage projects are advancing, with carbon dioxide used for enhanced oil recovery or stored deep underground. The oil industry has been using carbon dioxide to increase production for 50 years.
Carbon storage is a natural part of the carbon dioxide cycle, which has been occurring since the earth was formed. Long term, Peabody continues to expand its business platform to serve emerging Asia growth markets.
"In terms of coal markets, the Pacific Rim is very, very strong," says Boyce.