Coal | Economic Consulting | FTI Consulting
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FTI Consulting has developed a proprietary and customizable U.S. coal model that forecasts mine-mouth and basin-level thermal coal supply, demand, transportation volumes, and prices. This model represents 12 basins with 37 coalfields and 465 supply tranches and simultaneously co-optimizes with our power and coal models. Our experts have applied the coal model in contract volume disputes, policy analysis of NOx and SO2 requirements, evaluation of greenhouse gas cap-and-trade and carbon tax proposals, and coal producer mergers and acquisitions.

Our Service Offerings

Coal Supply and Demand Fundamentals

The FTI Consulting coal model provides full market representation of 37 coalfields and 465 supply tranches. Our experts have conducted market and policy analyses examining impacts to coal production, prices, and consumption for coal producers, grid operators, utilities, and other stakeholders. The model is often used in addressing the challenges of increased coal plant retirements due to competing fuels and stricter emission standards required by EPA regulations.

Environmental and Regulatory Policy

FTI Consulting often deploys its propriety coal model to examine the impact of proposed or current environmental policy on coal markets, including production, prices, and plant economics. By integrating the coal model with its natural gas and electricity models, our team can analyze the impact of policy initiatives – such as the Clean Power Plan or Department of Energy’s Grid Resiliency Pricing Rule – on coal markets, as well as the entire U.S. electricity system. This includes electricity prices, emissions, and changes in the electricity sector, such as increased renewable resource development. In fact, we can simultaneously deploy macroeconomic models to further examine the effects of such policies on GDP, labor income, employment, and tax revenue. As such, our ability to model the macroeconomic and energy market effects of public policy helps our clients better understand the impacts of policy changes.

Coal Industry Mergers

FTI Consulting has advised clients on the coal market, including prices, costs, and market competition, when they are facing merger and acquisition, asset divestiture, and plant closure challenges. Specifically, our experts deploy the proprietary coal model to show the effect of a potential merger on coal prices, production, and volumes and ultimately whether the potential merger will adversely impact market competition.

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