Blog: Coal and oil remain the largest energy source

Blog: Coal and oil remain the largest energy source

Coal and oil remain the largest energy source in the world. The cabinet will introduce a CO₂ tax in 2021 to limit emissions in the Netherlands.

It is striking that coal and oil are still the largest energy source, followed by natural gas.

Chart: Coal, Oil, Natural gas, Nuclear energy, Hydropower, Biomass and waste, Sun, wind and other sources. Energy in Megaton Oil Equivalents (Mtoe)

Schematisch overzicht van verschillende energiestromen in Nederland

If we look at the European Union, the picture is more positive. For example, wind and sun have overtaken coal from electricity generation for the first time. Wind energy has increased by 14% in the past year and two thirds of this is caused by seven countries, including the Netherlands, which mainly focuses on offshore wind.

In order to take further steps, the cabinet is introducing a CO₂ tax for companies that are now part of the ETS trade (CO₂ trade), waste incineration plants and companies that emit a lot of laughing gas. Companies are given free basic allowance in this. This basic allowance has been designed in such a way that the industry currently meets its reduction target. This is based on the benchmark that applies in the ETS. They can trade in free emissions that a company has left. It is expected that a start will be made with a rate of € 30 per tonne of CO₂ and that this will increase to € 125 to € 150 by 2030. The cabinet will set the level of the rate.

It is a good thing that the government is setting this up for the business community. Especially since the natural gas price has fallen sharply due to the corona pandemic. A levy of € 30 per ton is comparable to a price of 1.7 cents per m³ of natural gas. The international competitive position remains a difficult point and I believe that an import tax on energy-intensive products is also necessary, because otherwise we will move CO₂ emissions to other countries outside the EU. Obviously, that cannot be the intention.

The situation in The Netherlands

If we look at the Netherlands, we also see the rise of sun and wind energy here. It is important to realize that renewable electricity will be the standard within 10 to 20 years. The challenge lies mainly in sustainable heat and at a later stage also in sustainable raw materials. In view of the social resistance to the import of (woody) biomass, a lot still needs to change in that area. Currently, about half of the renewable energy comes from biomass, most of which is biomass. We as CCS focus on one of the largest, hardly used biomass sources in the Netherlands: manure. With this we can give substance to the further sustainability of the energy supply in the Netherlands.

About this article

29 October 2020 / Author: Dr. Ir. René Cornelissen

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