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WHERE TO FIND THE NATURAL RESOURCES THAT ARE FEEDING U.S. BUSINESSES

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WHERE TO FIND THE NATURAL RESOURCES THAT ARE FEEDING U.S. BUSINESSES

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Manufacturers operate complex supply chains that, in many cases, involve the movement of raw materials and resources from different parts of the world into their factories. 

It is an ever-moving puzzle. Indeed, manufacturing firms are often at the mercy of a range of factors outside of their control that can lead to disruptions, difficulties and, in extreme circumstances, halts in production. 

A timely reminder of this came in March when a 400-meter-long container vessel, the Ever Given, ran aground in the Suez Canal, blocking the waterway that is responsible for the safe passage of billions of dollars’ worth of goods and materials every year. Around 12% of global trade, including 1 million barrels of oil and 8% of liquefied natural gas, passes through the canal each day.


The blockage, caused by high winds, took six days to unjam and even took a human life in the process. Hundreds of other vessels were also delayed, a pile up which is thought to have consisted of almost $10 billion of goods.  

Meanwhile, as well as relying on the safe passage of goods from around the world, manufacturers are also having to take sustainability issues more seriously than ever before. 

In November, world leaders, including President Joe Biden, gathered in the U.K. for the 2021 United Nations Climate Change Conference, better known as COP26. Here, several key pledges were made to help move the world toward carbon neutrality, and there is no doubt that private sector organizations will have to play their parts in helping societies to successfully transition. In many cases, this could mean reassessing supply chains and the origin of key materials.  

Indeed, what if such materials were able to be sourced closer to home? 

There are various studies pointing toward consumers’ willingness to pay a premium for more sustainable products. IBM, for example, found that 57% of consumers are willing to change their purchasing habits to reduce negative environmental impacts, with 70% saying they would pay a premium of 35 percent, on average, for brands which are sustainable. Cheaper sourcing from abroad, it seems, could be compensated by customers who are willing to pay more for home-grown products. 

And the U.S. is home to an abundance of natural resources that are already supporting key manufacturing endeavors. Here, we explore just a few examples across states that can offer certain nearby manufacturers a competitive advantage.  

FORESTRY 

The U.S. is home to some vast areas of woodland that support key industries reliant on this versatile raw material. 

Globally, demand for wood-based products is steady. Indeed, the wood manufacturing market is projected to reach $502 billion in value by 2027, up from $442 billion in 2020–growing at a compound annual growth rate of 1.8% during the period. 

In America, according to the U.S. Forest Service, the forest products industry is among the top 10 manufacturing sector employers in 48 states. In terms of finances, this activity generates more than $200 billion a year in sales and pays about $54 billion in wages. 

The total amount of land covered by forests in the country is estimated to be around 750 million acres, with Alaska by far the most forested state. Oregon and California follow in second and third respectively. 

Several key industries are supported by this abundance of wood resources, including paper and pulp, furniture and construction. Moreover, around two thirds of American forested land is timberland, which is capable of producing industrially utilized wood. 

AGRICULTURE  

States home to a thriving agricultural scene could provide homegrown advantages to all manner of businesses, especially those operating in the food production supply chain. 

While there are many factors which determine the attractiveness of an area in regard to farming, soil quality is arguably the most important. 

In the U.S., mollisols are widely recognized to be the best growing soils due to a range of properties–namely, they are extremely fertile and of neutral pH. 

Resultantly, they constitute a large part of the country’s Wheat Belt and the wheat-growing area of Palouse in eastern Washington, with Illinois and Iowa also home to this favorable farming soil. 

Vermont is another state recognized for its high soil quality. While home to a variety, its official state soil is Tunbridge, which is described as “loamy and acidic” in nature. The state equally ranks highly across several factors such as farming infrastructure and investment. 

Agriculture also thrives in Nebraska. Here, the official state soil is Holdrege, which facilitates high yields because of its natural fertility and excellent moisture retention capacity. This translates into financials, with Nebraska’s corn yields being the third largest in the U.S. and worth $6.3 billion in 2018. 

California, however, is by far the country’s most prolific agricultural state. According to the latest figures from the U.S. Department of Agriculture’s Economic Research Service, California is responsible for 13.5% of all agricultural revenue in America. 

In 2020, the state recorded receipts of more than $49 billion across all agricultural commodities, nearly double that of Iowa ($26.2 billion) and 2.5 times the value of agricultural activity in Texas ($20.2 billion). 

There are many reasons why California is so well suited to growing crops. Not only is the western state home to some extremely fertile soil, but its climatic conditions also ensure the most is made of the quality of the land. It is the leading producer of a range of commodities, including wheat, lemons, oranges, grapes and avocados, and is among the most prolific grower of commonly consumed vegetables such as onions, lettuce, broccoli, carrots and mushrooms. Indeed, California produces more than 200 varieties of crops, with some being exclusive to the territory. 

This translates into an enticing prospect for businesses which rely on or work with a vast array of farmed ingredients. Rather than ship them in from abroad, setting up or sourcing from closer to home could provide sustainability, financial and risk-reducing supply chain advantages.

MINERALS

As well as abundant forests and vast swathes of prime agricultural land, the United States is also home to an array of minerals that serve all kinds of industrial activities. 

In 2020, mines across the country produced more than $82 billion worth of minerals, according to figures released in the 26th annual Mineral Commodity Summaries report from the USGS National Minerals Information Center. 

“Industries–such as steel, aerospace and electronics–that use nonfuel mineral materials created an estimated $3.03 trillion in value-added products in 2020,” said Steven M. Fortier, director of the USGS National Minerals Information Center.

In terms of metals, mine production in 2020 was estimated to be $27.7 billion, which is around 3% higher than that in 2019. 

Key contributors to this total value were gold (38%), copper (27%), iron ore (15%) and zinc (6%), with a total of 12 mineral commodities each having been mined at a value of more than $1 billion in 2020.

Geographically, several states are home to sizeable mineral mining activities. In 2020, 12 states each produced more than $2 billion worth of nonfuel mineral commodities. The states, ranked in descending order of production value, were: Nevada, Arizona, Texas, California, Minnesota, Florida, Alaska, Utah, Missouri, Michigan, Wyoming and Georgia.

It is also important to note that some industries in the U.S. rely heavily on imports. In 2020, imports made up more than one half of U.S. consumption for 46 nonfuel mineral commodities, with 17 minerals being wholly imported. These imported minerals are key materials for a range of industrial endeavors, including renewable energy generation and storage, as well as infrastructure technologies.

However, there is no doubt that the U.S. offers opportunities for enterprises reliant on a range of mineral resources, as shown by those 12 states that achieved more than $2 billion in output. 

Here, we explore a few of the country’s most abundant and valuable mineral commodities: 

Gold

Gold needs no introduction. One of the most iconic minerals, it has symbolized prosperity and formed the basis of currency through the ages. 

However, gold also carries a huge number of industrial uses that stretch far beyond coinage and blocks being stored in bank vaults, thanks to a myriad of special and diverse properties that make it incredibly useful. Some of these include being a conductor of electricity, non-tarnishing, very easy to work and able to be drawn into wire and hammered into thin sheets. Moreover, gold can be melted and cast into highly detailed shapes, offering a unique and appealing color and a desirable sheen.

All of this means gold is highly sought after across many industrial practices and sectors. In electronics, for example, devices use very low voltages and currents which are easily interrupted by corrosion or tarnishing at various contact points. Gold is a reliable conductor that can overcome this problem. Indeed, it will be found in almost every sophisticated electronic device, from smartphones and calculators to GPS systems and home assistants like Alexa. 

In terms of gold production in the U.S., the west of the country is where most deposits are found. Nevada and Alaska are the states that lead the production rankings from both lode mines and placer deposits, these feeding primarily into jewelry, electronics and coin-making activities.

In 2016, around $8.5 billion of gold was produced across the U.S., translating into 209 metric tons.   

Crushed stone 

Somewhat less glamourous than gold, crushed stone is an equally important mineral commodity produced in high quantities and serving critical industrial activity. 

According to USGS National Minerals Information Center figures for 2016 (the most recent available), the value of American crushed stone output, which includes limestone, dolomite and granite, reached $16.2 billion. 

The vast majority of crushed stone supplies the construction and ongoing upkeep of the United States’ transportation network. In 2016, more than three quarters of crushed stone went into road construction and maintenance, with another 11% going into cement manufacturing activities and 7% being used in lime production.  

Companies working with these materials (especially those producing various construction aggregates) will therefore likely be based in states where crushed stone output is highest in order to gain a proximity advantage. This is important, as crushed stone is a heavy material of relatively low value per ton, meaning any savings that can be made on transport will greatly increase financial viability. 

A handful of states are resultantly responsible for more than half of the U.S. production of crushed stone. These are Texas, Pennsylvania, Florida, Georgia, Illinois, Missouri, Ohio, North Carolina, Virginia and Kentucky. It should also be noted that small amounts of crushed stone are imported from the likes of Canada, Mexico and the Bahamas. 

Copper 

Another important mineral supplying the construction sector is copper. One of the first metals ever mined and used by humans, it has played an influential role in the shaping and evolution of civilizations. 

It remains the fifth most valuable mineral mined in the United States. In 2016, 1.41 million metric tons were produced, generating $6.8 billion in revenue–most of it deriving from sites in Arizona, New Mexico, Utah, Nevada, Montana and Michigan. 

Some 44% of this copper supported construction sector activities, with 19% being used in the production of transportation equipment and another 18% going into electric and electronic products. 

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Archives, Global Trade Daily, State Spotlight, Utilities

States Most Dependent on Coal for Electricity

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At the recent UN Climate Change Conference in Glasgow, world leaders convened to negotiate new goals for reducing carbon emissions in the effort to slow the pace of global warming. Across two weeks of negotiations, one of the major issues under discussion was the use of coal as an energy source. Some coal-dependent nations including India and China argued for a “phase down” rather than a total “phase out” of coal power in the final agreement, while U.S. envoy John Kerry predicted in an interview that the U.S. would eliminate it by 2030.

It is one of the cheapest energy sources available in the U.S., in part because the U.S. houses a large portion of the world’s coal reserves. But coal also has other environmental and social downsides that have made it a less desirable fuel source. Mining and burning coal heavily emits greenhouse gases like carbon dioxide and methane and also poses risks of air and water pollution. Many policymakers and environmental advocates are now pushing for a transition away from coal for that reason.

Until recently, however, cost won out, and inexpensive coal was the predominant fuel source in the U.S., accounting for more than half of electricity generation in the U.S. up until 2003. Since then, dependence on coal has plummeted and currently accounts for only 19.3% of total U.S. generation. The swift decline in coal has been made possible as other cleaner energy sources have become less expensive. Natural gas has seen a major boom over the last two decades as techniques like hydraulic fracturing and horizontal drilling made it easier to extract. Renewable sources like wind and solar have also become less expensive and more widely adopted in recent years thanks to government investment and technological advances. As a result, the share of electricity generated from renewables has risen by two-thirds since 1990.

Some states that have traditionally relied on coal both as an economic driver and as an energy source have been slower to make the transition. The majority of coal production in the U.S. is contained to a handful of states, including Wyoming and West Virginia, and because coal is cheap and plentiful, these heavy coal producers are also among the states that generate the greatest share of electricity from coal and a lower share from renewables. In contrast, the states that depend more heavily on renewables either have governments that have prioritized clean energy and emissions reductions or geographic features that make them well-suited to wind, solar, or hydropower installations.

The data used in this analysis is from the U.S. Energy Information Administration. To determine the states most dependent on coal for electricity, researchers at Commodity.com calculated the share of total electricity generated from coal. In the event of a tie, the state with the greater total electricity generated from coal was ranked higher. Researchers also calculated the total and proportion of electricity generated from renewable sources. Renewable sources include solar, wind, geothermal, biomass, and hydroelectric.

Here are the states most dependent on coal for electricity.

State Rank Share of electricity  generated from coal 5-year change in electricity generated from coal Total electricity generated from coal (MWh) Share of electricity generated from renewables Total electricity generated from renewables (MWh)
West Virginia    1    88.6% -26.2% 50,216,398 6.2% 3,496,285

 
Wyoming    2    79.4% -22.6% 33,359,104 16.1% 6,763,997

 
Missouri    3    71.3% -20.8% 51,755,690 7.5% 5,450,572

 
Kentucky    4    68.7% -39.9% 43,638,313 8.5% 5,395,636

 
Utah    5    61.5% -28.0% 22,806,021 12.5% 4,644,687

 
North Dakota    6    58.1% -11.7% 24,496,807 38.1% 16,084,768

 
Indiana    7    53.1% -38.9% 47,772,885 8.2% 7,364,544

 
Nebraska    8    51.0% -22.3% 18,788,647 28.9% 10,648,740

 
Wisconsin    9    38.7% -36.1% 23,761,097 9.4% 5,779,793

 
New Mexico    10    37.5% -37.4% 12,788,184 27.2% 9,253,738

 
Ohio    11    37.2% -37.2% 45,008,596 2.9% 3,500,737

 
Montana    12    36.4% -47.0% 8,490,284 59.4% 13,872,119

 
Colorado    13    36.0% -38.2% 19,478,405 30.9% 16,724,964

 
Kansas    14    31.1% -31.0% 16,959,839 44.2% 24,117,519

 
Arkansas    15    28.2% -29.1% 15,420,998 10.5% 5,735,702

 
United States    –    19.3% -42.8% 773,392,897 19.5% 783,003,365

 

 

For more information, a detailed methodology, and complete results, you can find the original report on Commodity.com’s website.

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States That Produce the Most Renewable Energy

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Since President Joe Biden and a new Congress took office earlier this year, federal policymakers have been working to speed up the U.S. transition to clean and renewable energy sources. One of Biden’s first actions in office was to rejoin the Paris Climate Accord, the 2016 agreement in which countries pledged to significantly reduce their CO2 emissions. The Biden Administration followed this up with aggressive carbon reduction targets and the American Jobs Plan proposal, which includes provisions to modernize the power grid, incentivize clean energy generation, and create more jobs in the energy sector. Much of Biden’s agenda builds on prior proposals like the Green New Deal, which would achieve emissions reductions and create jobs through investments in clean energy production and energy-efficient infrastructure upgrades.

 


The transition to renewables has taken on greater urgency in recent years with the worsening effects of climate change. Carbon emissions from non-renewable sources like coal, oil, and natural gas are one of the primary factors contributing to the warming of the atmosphere, and climate experts project that to limit warming, renewable energy must supply 70 to 85% of electricity by midcentury.

Renewable energy still represents less than a quarter of total annual electricity generation in the U.S., but the good news is that renewable energy has been responsible for a steadily increasing share of electricity generation over the past decade. Most of the upward trajectory comes from exponential growth in the production of solar and wind power. In 1990, solar power generated only 367,087 megawatt-hours of electricity, while wind power was responsible for 2,788,600 megawatt-hours. Since then, technological improvements and public investment in wind and solar helped lower costs and make them viable competitors to non-renewable sources. By 2020, solar production had reached 89,198,715 megawatt-hours, while wind produced 337,938,049 megawatt-hours of electricity.

But this evolution is uneven across the U.S., a product of differences in states’ economies, public policy toward renewables, and perhaps most importantly, geographic features. Even among states that lead in renewable energy production, these factors contribute to different mixes of renewable sources. For instance, Texas—the nation’s top producer of renewable energy—generates most of its renewable electricity from wind turbines. Runner-up Washington and fourth-place Oregon take advantage of large rivers in the Pacific Northwest to generate more hydroelectric power than any other state. And California, which is third in total renewable production, has been a long-time leader in solar energy thanks in part to an abundance of direct sunlight.

Meanwhile, states that lag behind in renewable generation include several states without the size or geographic features to scale up production, like Delaware, Rhode Island, and Connecticut, along with states whose economies are more traditionally dependent on fossil fuels, like Mississippi and Alaska.

To determine the states producing the most renewable energy, researchers at Commodity.com used data from the U.S. Energy Information Administration to calculate the percentage of total electricity generated from renewable sources. Renewable energy sources include wind, solar, geothermal, biomass, and hydroelectric. In the event of a tie, the state with the greater five-year growth in renewable electricity production, between 2015 and 2020, was ranked higher.

Here are the states that produce the most renewable energy.

State
Rank
Percentage of electricity generated from renewables
5-year change in renewable electricity production
Total electricity generated from renewables (MWh)
Largest renewable energy source
Vermont    1     99.9% +9.0% 2,155,177 Hydroelectric Conventional
South Dakota    2     80.5% +55.0% 11,388,457 Hydroelectric Conventional
Maine    3     76.7% -1.7% 7,674,956 Hydroelectric Conventional
Idaho    4     76.1% +15.0% 13,456,149 Hydroelectric Conventional
Washington    5     75.0% +5.6% 87,109,288 Hydroelectric Conventional
Oregon    6     67.5% +9.5% 42,928,468 Hydroelectric Conventional
Iowa    7     59.4% +85.6% 35,437,099 Wind
Montana    8     59.4% +16.8% 13,872,119 Hydroelectric Conventional
Kansas    9     44.2% +117.6% 24,117,519 Wind
California    10     42.6% +38.9% 82,239,832 Solar Thermal and Photovoltaic
Oklahoma    11     39.7% +91.9% 32,687,539 Wind
North Dakota    12     38.1% +87.0% 16,084,768 Wind
Colorado    13     30.9% +77.4% 16,724,964 Wind
Alaska    14     30.8% +8.3% 1,931,545 Hydroelectric Conventional
Nebraska    15     28.9% +115.7% 10,648,740 Wind
United States    –     19.5% +43.9% 783,003,365 Wind

 

For more information, a detailed methodology, and complete results, you can find the original report on Commodity.com’s website: https://commodity.com/blog/states-renewable-energy/

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Next Generation Supply Chain – Building The Circular Economy

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It might be dismaying, if not shocking, to learn that humanity’s demand for natural resources far exceeds what the planet is capable of regenerating. We currently consume the equivalent of around 1.7 earths every year. With global demand increasing, it is expected by 2050 that we will need the equivalent of 3 earths. Our current resource consumption rates are obviously unsustainable, and if we continue on our current trajectory, we’ll inevitably deplete all of the planet’s resources.

As the global population continues to grow and the demand for goods increases in-kind, there’s mounting pressure on companies to produce more, and more quickly, in order to stay relevant. To meet this fevered demand, humanity has relied on linear ‘take‑make‑waste’ supply chains and disposable-economy models. Products get thrown away and become landfills. Yet more are produced to meet an ever-growing need.

Electronic equipment waste, in particular, represents one of the most glaring threats to our planet’s long-term stability. The United Nations estimates that the current 53 million tonnes of e-waste generated every year will double by 2050, making it the world’s fastest-growing waste stream. Likewise, global plastics production currently totals over 360 million metric tons per year. 50% of those are single-use plastics–they’re produced, used once, and thrown away. The cumulative total of plastics produced is now over 8-billion tons worldwide, with around 10 million of those tons ending up in our oceans each year.

It’s time for the disposable, ‘take-make-waste’ economy that humanity created to change. To slow down the wanton consumption of earth’s natural resources, stop plastic pollution and raw-materials waste, we need a circular economy that works for all of us. The good news is, steps are being taken toward just such a model.

Slowing Down the Natural Resource Consumption Rate

Manufacturers need to reduce the consumption of natural resources by recycling raw materials from end-of-use products and reconditioning or repurposing their components for use in new products.

By using digital and IoT technology, for example, manufacturers can empower consumers and employees to monitor the usage, performance, and overall integrity of factory or household equipment. Sensor technology can help predict problems and equipment failures, facilitate proactive maintenance, and ensure equipment remains viable at critical junctures.

Products will need to be designed with both end-of-use and remanufacture in mind. This requires designing-in processes for disassembly to reclaim raw materials and components that can be reconditioned, reused, or remanufactured.

When products are no longer viable, AI and robotics technology can salvage useful remnants from those products. For example, Apple uses a robot [Daisy] to disassemble iPhones to reclaim and conserve high-quality and precious materials in an energy-efficient way. Daisy dismantles 200 iPhones per hour and methodically places collected materials in appropriate containers. By using digital technology, manufacturers can assess returned products and materials for refurbishment, re-manufacture, or resale at a relatively low cost, and by keeping the same materials in circulation longer, they’ll constrain the rate of natural resource consumption.

Recovering End-of-Use Products for Remanufacture

Manufacturers need to increase the probability of recovering end-of-use products in order to reuse components or reclaim raw materials for new products.

To that end, they can offer direct-to-consumer, subscription-based ‘Product-as-a-Service’ mechanisms that use sensor technology to monitor product consumption and usage up until end-of-use. The manufacturer can then provide the consumer with an automated direct replacement of the product while collecting any vessels, cartridges, or containers for reincorporation in the manufacturing process.

In this scenario, the manufacturer’s reduced consumption dovetails with them gaining better insight into the consumer’s product experience by understanding the frequency of use in demand/replacement cycles.

Removing intermediaries in the supply chain can also provide greater value to the customer. Getting rid of middlemen costs less and ensures new products arrive directly at your door when you need them.

Industrial Symbiosis

Industrial symbiosis is the process by which waste or by‐products from one company or industry become the raw materials for another. The waste or by-product can either be donated or sold to another company allowing the resources to then be monetized and reused. Moving materials and resources between different companies and industries is key not just to creating a circular economy, but also to ensure the best possible use of natural resources.

Leveraging Technology and Making Circular Economies Happen

All of the above scenarios can reduce natural resource consumption, increase raw material productivity and lifecycles, and reduce manufacturing costs. Whether it’s via extending the life of mechanical and electronic appliances through remote performance monitoring, providing products direct-to-consumers with a system for reclaiming unwanted containers and cartridges, or improving the speed of disassembly and raw material reclamation for reuse, digital technology plays a pivotal role in making that reality.

The provenance and flow of components, products, and materials through supply chains to their end-of-use needs to be transparent. Unique identifier technologies such as cryptographic anchors, molecular DNA tags, or RFID tags can be applied to the surface of a component or product, or embedded into raw materials, to gather data on how wasteful a given supply chain is. Using these unique identifiers in conjunction with blockchain not only authenticates the provenance and origin of components and materials, it also provides location-based information for tracking and tracing product conditions.

Leading organizations are now focusing their efforts on using technologies to enable the transition to a circular economic model. Technologies such as IoT, predictive and prescriptive analytics, 3D printing, AI and machine learning, blockchain and digital twins, all have an essential role to play in this transition.

Products-as-a-Service

To further encourage the paradigm shift toward a circular economy necessitates a change in how we think about product acquisition. The motor industry offers drivers the opportunity to lease their cars with the option to buy after some certain period of time has passed. This ‘Product-as-a-Service’ leasing model is now being adopted by other manufacturers. Instead of purchasing a washing machine you can lease one. A consumer can enter into a contract with the manufacturer based on an agreed number of individual washing cycles or time, and be billed monthly. At the end of the contract, the manufacturer collects the machine and replaces it with a new one and a new leasing contract, or just takes the machine away for the consumer to consider other competitive leasing options. Either way, the machine is back in the hands of the manufacturer, who can now refurbish the machine for reuse.

During the consumer’s use of the machine, the manufacturer can not only monitor its usage, but also its integrity. Using IoT sensors and predictive analytics, the manufacturer can keep an eye on the health of the machine and recommend that the user proactively replace a given component before it breaks.

There are many examples of where ‘Product-as-a-Service’ and leasing models are becoming more commonplace by using digital technology to enable the provision, service, and financial arrangements. This is just one area where the industry is evolving to meet the moment, but an important one, and it illustrates how radically manufacturers can rethink their business models if they are so motivated. Moving to a more sustainable, less wasteful business model doesn’t have to mean a net loss for companies. If anything, the available examples seem to suggest that such transitions will open up unforeseen opportunities for new revenue streams and technological innovation. Far from being a zero-sum proposition, the conservation of raw materials and resources, it seems, can be of benefit to both consumers and manufacturers.

__________________________________________________________________

 Tim Adams is an Executive Partner at Theorem

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U.S. States Producing the Most Wind Energy

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“Meteoric” is one way to describe wind energy’s rise to the top of America’s renewable energy industry.

Amid repeated calls from scientists and activists to undertake measures to curb global warming, lawmakers, politicians, and the energy industry have responded. Foremost in that effort is the call for carbon-free energy production via alternative energy sources like wind and solar. Many states have followed suit, with governors from coast to coast implementing wide-ranging initiatives meant to gradually reduce the carbon footprint of power generation in the coming years.

Wind generation is at the leading edge of the movement toward clean energy production. Fields of wind turbines across the country have slowly started to increase their proportion of total energy production. And just this year, President Joe Biden announced measures meant to accelerate the development of offshore wind energy.

While U.S. offshore wind production currently lags behind that of other developed nations, its onshore capacity is second only to China. Wind energy’s share of total utility-scale electricity generation in the U.S. grew from less than 1% in 1990 to about 8% last year.

In 2019, more than $13 billion was invested in wind power, and the amount of new generation capacity added to the nation’s electrical grids through wind projects was greater than all other sources except natural gas. Driving the investment may be the simple fact that it’s far cheaper to install wind farms than it is to build hydroelectric plants and solar farms. Alongside the value, the federal government subsidized wind construction with tax credits. The result? Wind generation exceeded hydroelectric power for the first time in 2019.

While tax credits and reasonable construction costs have increased wind’s popularity, perhaps its greatest advantage is availability. Wind regularly barrels across the Midwest and the Texas-Oklahoma border at average speeds of 20 to 30 miles per hour, a key speed range, as turbines reach their rated generation capacity when winds hit 26 to 30 miles per hour.

This explains why the Midwest and the West South Central region are home to the top wind-generated electricity producers in the nation. Texas leads the nation in total wind energy production, generating more than twice as much wind electricity as the next state. And while the Lone Star State’s wind energy makes up a significant portion of its renewable energy generation (92%), Kansas’ renewable energy generation relies on wind more than any other state. Kansas’ wind turbines produce more than 99% of its renewable energy and 42% of total.

The data used in this analysis is from the U.S. Energy Information Administration. To determine the states producing the most wind energy, researchers at Commodity.com calculated each state’s annual wind energy production, measured in megawatt-hours. Researchers also calculated the absolute change in wind energy production since 2010, wind’s share of total energy production, and wind’s share of total renewable energy production.

Here are the states producing the most wind energy.

State Rank Annual wind energy production (MWh) Change in wind energy production since 2010 (MWh) Wind share of total energy production Wind share of total renewable energy production

 
Texas     1     83,620,371 57,368,961 17.3% 92.0%
Oklahoma     2     29,008,131 25,200,048 34.0% 87.2%
Iowa     3     26,304,990 17,134,653 42.0% 96.2%
Kansas     4     21,123,539 17,718,474 41.5% 99.6%
Illinois     5     14,459,597 10,005,963 7.8% 96.0%
California     6     13,735,069 7,656,437 6.8% 14.1%
North Dakota     7     11,213,025 7,117,384 27.3% 77.9%
Minnesota     8     10,964,869     6,173,146 18.5% 75.8%
Colorado     9     10,852,376     7,400,525 19.3% 77.3%
Nebraska     10     7,211,092     6,789,447 19.3% 83.2%
New Mexico     11     6,892,087     5,059,905 19.6% 81.1%
Washington     12     6,677,261     1,932,582 6.3% 9.0%
Oregon     13     6,568,889     2,648,882 10.6% 17.0%
Indiana     14     6,216,030     3,281,987 6.1% 85.7%
Michigan     15     5,825,705     5,465,365 5.0% 58.7%
United States     –     295,882,483     201,230,237 7.2% 40.6%

 

For more information, a detailed methodology, and complete results, you can find the original report on Commodity.com’s website: https://commodity.com/blog/states-wind-energy/

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Alternative Energy Regulation and the Covid-19 Pandemic Restrict Global Coal Market Growth

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IndexBox has just published a new report: ‘World – Coal – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

In 2020, the decline in the global coal market gathered momentum, against the Covid-19 pandemic. The low cost of natural gas, combined with the development of alternative energy sources and stricter environmental regulations, are pushing the coal energy sector into stagnation. In the medium term, only the metallurgical industry is set to see stable demand for coal.

Key Trends and Insights

Since 2019, global coal consumption has been in decline, against poor growth in the demand for electricity, low natural gas prices and the enhanced use of alternative sources of energy. Data released by the International Energy Agency (IEA) indicated that, in 2019, coal-fired power production fell in the European Union by 23%, and in the USA by 17%.

In 2020, the European Union (-19%, -111 Мт) and the USA (-14%, -87 Mt), saw a significant decline in coal-fired power production. This was conditioned by the new ‘Green Deal’ aimed at the strategic reduction of carbon emissions.

In 2020, increased coal-fired electricity production was recorded only in China and ASEAN, where coal total consumption saw a growth of approx. 1.2%.

Global coal demand is set to decrease further by 2025, hampered by the new climate regulation initiatives, particularly, in the EU. Even the anticipated expansion of the coal sector in India could not alone shape the global demand for coal. China is reaching a plateau in terms of coal consumption and several countries committed to reduce coal consumption (Korea, Vietnam, Bangladesh, the Philippines and Egypt) in 2020.

The global consumption of metallurgical coal also fell by 3.2% in 2020, as a result of the decline in global steel production. Should the Covid-19 restrictions be completely lifted in 2021, alloy production is expected to recover, which is set to restore demand for coal.

China Remains the Largest Coal Consuming Country

China (4,570M tonnes) remains the largest coal-consuming country worldwide, accounting for 39% of total volume. Moreover, coal consumption in China exceeded the figures recorded by the second-largest consumer, India (1,053M tonnes), fourfold. The U.S. (644M tonnes) ranked third in terms of total consumption with a 5.5% share (IndexBox estimates).

From 2012 to 2019, the average annual growth rate of volume in China stood at -1.1%. In the other countries, the average annual rates were as follows: India (+5.5% per year) and the U.S. (-4.8% per year).

In value terms, China ($483.6B) led the market, alone. The second position in the ranking was occupied by India ($145B). It was followed by the U.S.

The countries with the highest levels of coal per capita consumption in 2019 were South Africa (3.89 tonne per person), China (3.13 tonne per person) and Russia (3 tonne per person).

From 2012 to 2019, the biggest increases were in India, while coal per capita consumption for the other global leaders experienced more modest paces of growth.

China (282M tonnes), India (241M tonnes), Japan (183M tonnes) and South Korea (141M tonnes) represented roughly 62% of total imports of coal in 2019. It was distantly followed by Taiwan (Chinese) (67M tonnes), mixing up a 4.9% share of total imports. Malaysia (38M tonnes), Turkey (30M tonnes), the Philippines (30M tonnes), Germany (29M tonnes), Viet Nam (25M tonnes), Thailand (24M tonnes), Russia (22M tonnes) and Brazil (21M tonnes) followed a long way behind the leaders.

In value terms, China ($24.6B), Japan ($19.3B) and India ($17.3B) constituted the countries with the highest levels of imports in 2019, together accounting for 51% of global imports. South Korea, Taiwan (Chinese), Brazil, Malaysia, Germany, Turkey, Viet Nam, the Philippines, Thailand and Russia lagged somewhat behind, together comprising a further 31% (IndexBox estimates).

Driven by rising demand for coal worldwide, the market is expected to start an upward consumption trend over the next decade. The performance of the market is forecast to increase slightly, with an anticipated CAGR of +1.4% for the period from 2019 to 2030, which is projected to bring the market volume to 13,602M tonnes by the end of 2030.

Source: IndexBox AI Platform

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Africa is Ready for Growth with Support from Trans-Ocean Transportation

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RTM Lines is a trans-ocean transportation company headquartered in Norwalk, Connecticut, with over 39 years of experience in the global ocean carrier business. As a respected ocean transportation provider, we are continually equipping clients with valuable information and insight related to the ocean transportation industry.  Recently, RTM Lines has invested time and research to better understand the growth of African infrastructure and resources; and how those factors affect opportunities for growth and development in the breakbulk and project cargo markets. Research shows Africa resources and opportunities in key locations such as the Democratic Republic of Congo, Ethiopia, and Northern Mozambique. 

“Right now, the Democratic Republic of Congo (DRC) is sitting on the world’s largest cobalt resource, however the ongoing political turmoil, makes it very difficult to access the cobalt,” said Richard Tiebel, RTM’s Executive Vice President. He states, “Africa is showing more exponential growth than any other continent. Right now, markets like Ethiopia have shown 8% GDP growth, per annum. Analyzation shows there are a number of factors within urbanization, ICT (Telecommunications), and the Extractives Industry (Oil, Gas, and Mining) driving this growth.” 

With an array of potential possibilities for growth in Africa in the coming years, RTM Lines recommends directing attention to trades and the international markets in Africa, specifically in the shipping and trading processes. The growth and opportunities available in the African market, have great potential for clients that develop and understand the Africa market. 

“In the next 4-5 years, city populations in Africa will double, which means the infrastructure will need development. This development will motivate the community to build infrastructure that supply power, water, sanitation, housing developments, and support to serve the new population in the area. Most governments couldn’t support fixed-line infrastructures, but Africa is going through an information, communication, and technological revolution. The private sector is supporting this revolution and allowing Africans to pursue business opportunities. Companies like Microsoft have been investing in some African tech sectors, to develop talent and to take Africa forward,” said Tiebel.

As the International Maritime Organization (IMO) 2020 regulation will soon go into effect, Tiebel shared his perspective on how Africa’s natural resources can positively influence the trans-ocean transportation industry. 

Mr. Tiebel states, “the gas in Northern Mozambique is the world’s 12th largest natural gas resource. A lot of infrastructure will be needed in order to get this gas because the town itself is very small and scarcely has roads to support it, no port, no airport, or even power and electricity. The town of Palma will literally be built up in order to access this gas resource offshore.” He continues, “the cost of the IMO regulatory change on the shipping industry is unknown, and though we know the IMO’s decision will impact refiners, producers, bunker suppliers, and more, Africa offers a variety of natural resources to emerge as a major beneficiary of this regulation. This supply of natural resources has the potential to help the trans-ocean transportation industry control the anticipated spike in fuel costs in 2020.” 

RTM Lines is committed to providing customers the information necessary to ship ocean cargo with confidence. Understanding the changes and regulations in these expanding and shifting markets is key to providing smooth transit for infrastructure, mining, and oil & gas project cargo. RTM Lines is both knowledgeable and competent in global operations. Port to port, RTM Lines strives to improve the global trade market and the quality of the ocean transportation industry.