types of coal

Types of Coal: Properties, Formation, and Uses

Published on July 8, 2025
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8 Min read time

Quick Summary

  • Coal is a fossil fuel formed from ancient vegetation, widely used for electricity, steel, and cement production.
  • It exists in four types—peat, lignite, bituminous, and anthracite—classified by carbon content and energy value.
  • India relies heavily on coal, especially for power generation, with key reserves in Jharkhand, Odisha, and Tamil Nadu.
  • Coal pricing depends on grade, logistics, import dependence, market demand, and government regulations.
  • Environmental concerns are driving adoption of cleaner technologies and gradual transitions to renewable energy.

Table of Contents

Introduction

Understanding the types of coal is crucial for anyone interested in energy production, industry, or environmental science. Coal is classified into four main types based on carbon content and heat value: anthracite, bituminous, sub-bituminous, and lignite. Anthracite is the highest grade of coal, with a carbon content of 86-97%, known for its hardness, shiny black appearance, and clean, high-heat burning, though it’s relatively rare. Bituminous coal, the most common type, offers high heating capacity and is widely used for electricity generation.

Sub-bituminous coal, dull in appearance, sits between bituminous and lignite in terms of carbon and energy value and is mainly used for power generation. Lignite, also called brown coal, is the lowest grade with high moisture content and lower efficiency for energy production. Exploring the types of coal helps us understand their uses, advantages, and role in global energy systems.

What is Coal?

Coal is a dark, combustible sedimentary rock formed from the remains of ancient vegetation buried under layers of sediment over millions of years. Comprised mainly of carbon (60–90%), hydrogen, and oxygen, coal also contains smaller amounts of sulfur, nitrogen, and mineral impurities. It is categorized as a fossil fuel because it originates from biological material and stores solar energy captured through photosynthesis.

  • Formation Period: 300–400 million years during the Carboniferous period.
  • Combustibility: Ignites easily and releases heat energy.
  • Versatility: Used in power generation, metallurgical processes, and chemical manufacturing.
  • Availability: Over 1 trillion tonnes of proven coal reserves worldwide.

Importance of Coal in India and Globally

Coal remains a cornerstone of global energy, particularly in developing economies.

Detailed Explanation: Coal accounts for around 70% of electricity generation in India, making it indispensable to the nation’s energy security. Internationally, coal contributes approximately 38% to the global electricity mix. Its abundance, established infrastructure, and continuous power supply capability make coal a reliable choice despite the rise of renewables. Coal also supports allied industries, railways transport bulk coal, mining operations generate significant employment, and thermal plants spur growth in ancillary services.

  • Energy Security: Domestic production reduces dependence on imported fuels.
  • Employment: Over 4 million direct and indirect jobs in mining, logistics, and power generation.
  • GDP Contribution: Coal mining contributes significantly to the economies of Jharkhand, Odisha, Chhattisgarh, and West Bengal.
  • Industrial Backbone: Steel (coking coal) and cement (thermal coal) sectors rely heavily on coal supplies.
type of soil- formation of coal

Formation of Coal: How Coal is Formed

The process of how coal is formed involves progressive stages of burial, compaction, and chemical transformation of plant matter.

Detailed Explanation: Initially, dense vegetation accumulated in swampy environments and formed peat, a loose, spongy deposit with high moisture. Over geological time, peat layers were buried under sediments, where increasing pressure and heat expelled water and volatile compounds, concentrating carbon. This metamorphism yielded various coal ranks: lignite, bituminous, and anthracite, each reflecting a higher degree of coalification.

  1. Peat Stage: Accumulation of plant debris in anaerobic swamps; moisture >70%, low calorific value.
  2. Lignite Formation: Burial to shallow depths; moisture reduces to 30–45%, carbon content rises to 60–70%.
  3. Bituminous Stage: Increased depth and temperature; carbon content 75–87%, develops workable thermal and metallurgical properties.
  4. Anthracite Stage: Deep burial and high heat yield 92–98% carbon content, the highest calorific value, and hardness.
  • Geological Time: Hundreds of millions of years.
  • Pressure & Temperature: Key drivers of coal rank progression.
  • Organic Composition: The type of vegetation that influences coal chemistry.

Main Coal Types and Properties of Coal

types of coal

There are 4 types of Coal, classified into primary ranks based on properties of coal and carbon content:

Peat (not coal)

Detailed Explanation: Peat is the precursor to coal, composed of partially decayed plant matter. Although it contains a lower percentage of carbon (~60%), its high moisture makes it a poor energy source. Peat is harvested in regions like Ireland and Finland for local heating and agricultural soil improvement.

Key Properties:

  • Moisture Content: Up to 90%
  • Carbon Content: ~60%
  • GCV of Peat: 4,000–6,000 kcal/kg
  • Uses: Domestic heating, soil conditioner, horticulture substrate

Lignite

Detailed Explanation: Lignite is known as brown coal, lignite represents the second stage of coalification. It retains higher moisture (30–45%) and lower carbon (60–70%) than bituminous coal. Due to its low energy density, lignite is used primarily in power stations near mine sites to reduce transport costs.

Key Properties:

  • Carbon Content: 60–70%
  • Moisture Content: 30–45%
  • GCV of Lignite: 6,000–8,000 kcal/kg
  • Uses: Thermal power generation, local heating
  • Environmental Note: Higher emissions per unit energy than higher-rank coals

Bituminous Coal

Detailed Explanation: Bituminous coal is the most widely used rank due to its balance of carbon (75–87%) and moisture (2–17%). It has two subtypes: thermal bituminous for electricity and metallurgical bituminous (coking coal) for steelmaking. Its versatility and availability make it the most significant coal type globally.

Key Properties:

  • Carbon Content: 75–87%
  • Moisture Content: 2–17%
  • GCV of Bituminous: 8,000–11,000 kcal/kg
  • Uses: Power plants, steel production (coking coal), cement manufacture
  • Advantages: Lower smoke and ash compared to lower ranks

Sub-Bituminous Coal

Detailed Explanation: Sub-bituminous coal is a transitional coal rank between lignite and bituminous. It has a moderate energy content and lower carbon concentration (45–75%), but higher moisture content (15–30%), which affects its heating efficiency. Despite this, it burns cleaner than lignite due to its lower sulfur content. Sub-bituminous coal is primarily used in electricity generation in coal-fired power plants, especially in countries with significant reserves like the United States and Indonesia.

Key Properties:

  • Carbon Content: 45–75%
  • Moisture Content: 15–30%
  • GCV of Sub-Bituminous: 6,800–9,000 kcal/kg

Uses: Electricity generation, industrial boilers, cement production (to a limited extent)
Advantages: Lower sulfur emissions, abundant availability, safer transport and storage than higher-rank coals due to lower spontaneous combustion risk.

Anthracite

Detailed Explanation: Anthracite represents the final coal rank, characterized by very high carbon content (92–98%) and minimal moisture (<5%). Its high GCV of coal (11,000–15,000 kcal/kg) and clean-burning properties make it ideal for residential heating, high-grade metallurgical processes, and specialty applications.

Key Properties :

  • Carbon Content: 92–98%
  • Moisture Content: <5%
  • GCV of Anthracite: 11,000–15,000 kcal/kg
  • Uses: Industrial heating, metal smelting, premium residential coal
  • Environmental Benefit: Lowest emissions among coal ranks

Type of Coal in India: Regional Variations

India’s diverse geology yields different types of coal in India, impacting regional energy strategies.

Jharkhand and West Bengal boast rich deposits of coking and thermal bituminous coal, which are crucial for steel hubs like Jamshedpur. Odisha and Chhattisgarh supply thermal bituminous coal to power plants, while Tamil Nadu and Gujarat lignite fields support localized generation. Madhya Pradesh’s lignite reserves further contribute to regional energy security.

Regional Highlights :

  • Jharkhand: Jharia (coking), Bokaro (thermal)
  • West Bengal: Raniganj (bituminous and semi-anthracite)
  • Odisha: Talcher (thermal bituminous)
  • Chhattisgarh: Korba & Hasdeo-Arand (power-grade coal)
  • Tamil Nadu & Gujarat: Neyveli (lignite) for captive power

Impacts:

  • Coal Price Variation: Higher for coking coal vs thermal grades
  • Logistics Costs: Proximity to rail and ports influences landed price
  • Quality Metrics: Ash and sulfur content vary regionally

Gross Calorific Value (GCV) of Coal

The GCV of coal is a critical measure in assessing its energy potential.

GCV represents the total heat released when a specific amount of coal is burned under standardized conditions. It guides power plant design, furnace dimensions, and economic viability. Higher GCV coals yield more energy per kilogram, reducing fuel consumption and emissions.

GCV Table:

  • Peat: 4,000–6,000 kcal/kg (low energy density)
  • Lignite: 6,000–8,000 kcal/kg (bulk power near mines)
  • Bituminous: 8,000–11,000 kcal/kg (versatile industrial use)
  • Anthracite: 11,000–15,000 kcal/kg (premium fuel)

Influencing Factors:

  • Moisture Content: Inversely proportional to GCV
  • Fixed Carbon: Directly correlates with heat output
  • Mineral Matter: Ash lowers net heat value

Coal Price Trends and Market Dynamics

Coal pricing is a dynamic and complex aspect of the energy economy, especially in a coal-dependent nation like India. Various internal and external factors, including the grade of coal, demand and supply patterns, transportation and logistics costs, international markets, and government policy influence it.

India’s coal prices are primarily governed by Coal India Limited (CIL), the state-owned coal mining giant. Prices are segmented based on the types of coal, such as coking coal for steel industries and thermal coal for power generation. Globally, the coal market reacts to international benchmarks like the Australian Newcastle Index and Indonesian coal prices, directly impacting the cost of imported coal. The GCV of coal is an important determinant, as higher GCV coals yield more energy and command a higher price.

Due to India’s reliance on domestic and imported coal, price volatility in international markets, driven by geopolitical events, shipping costs, or supply chain disruptions, can significantly affect national pricing strategies. Additionally, coal prices are affected by taxes, royalties, and environmental regulations that vary between states.

Factors Affecting Coal Prices in India (Bullets with Descriptions):

  • Coal Grade and Type:
    • Higher grade coal costs more, like anthracite and bituminous coal, with a high GCV.
    • Lower-grade coals like lignite and peat are cheaper but have lower calorific value.
  • Domestic vs Imported Coal:
    • Imported coking coal (especially from Australia) is more expensive due to freight and currency exchange.
    • Domestic coal is subsidized and often preferred for public power generation.
  • Transportation & Logistics:
    • Inland freight, railway tariffs, and port handling fees can account for 25–30% of the total cost of coal.
  • Market Demand & Supply:
    • Industrial and seasonal energy demands increase prices during summer and winter.
    • Festive seasons and economic booms also boost consumption, impacting prices.
  • Government Regulation:
    • Coal pricing policies, taxes, royalties, and carbon taxes affect the final cost.
    • Environmental levies and auction premiums also play a role.

Chart: Average Coal Prices in India (2025 Estimates)

Coal TypeGCV Range (kcal/kg)Average Price (₹/tonne)Use Case
Peat4,000–6,000₹1,500 – ₹2,000Limited domestic heating, agriculture
Lignite6,000–8,000₹2,500 – ₹3,500Thermal power plants, local heating
Bituminous (Thermal)8,000–10,000₹3,800 – ₹5,500Electricity generation
Bituminous (Coking)8,500–10,500₹7,000 – ₹12,000Steel manufacturing
Anthracite11,000–15,000₹10,000 – ₹15,000Premium residential & metallurgical
Imported Coking Coal11,000–13,000₹12,000 – ₹20,000High-grade steel plants

Market Dynamics:

  • Seasonal Volatility: Prices typically rise during peak electricity usage (April–June).
  • International Influence: Rising global coal prices raise the landed cost of imported coal.
  • Subsidy Effects: Government subsidies for power plants influence domestic price trends.
  • Shift to Renewables: As India increases its solar and wind power share, demand for thermal coal may plateau, influencing long-term pricing.

Understanding the coal market is crucial for policymakers, industries, and consumers to make informed decisions. With changing environmental regulations and India’s growing energy needs, coal pricing will remain a significant element of the national energy discourse.

Environmental Impact and Sustainable Alternatives

Coal’s environmental footprint necessitates cleaner technologies and alternatives.

Coal combustion emits significant quantities of CO₂, SOx, NOx, and particulate matter. Mining disrupts ecosystems and generates waste. Strategies like clean coal technology, carbon capture and storage (CCS), and gradual shifts to renewable energy sources are critical to mitigate these impacts.

  • Flue Gas Desulfurization: Reduces SO₂ emissions.
  • Electrostatic Precipitators: Capture particulate matter.
  • CCS: Captures and stores CO₂ underground.
  • Co-firing: Blending biomass with coal lowers net emissions.
  • Renewables Integration: Solar and wind reduce coal dependency over time.

Conclusion

In summary, coal remains an indispensable energy resource, powering industries, households, and economies worldwide. Understanding what coal is and the formation of coal, from peat through lignite, bituminous, to anthracite, is essential for grasping how this fossil fuel meets diverse energy needs. Each of the 4 coal types carries unique coal properties, such as carbon and moisture content, influencing its gross calorific value (GCV of coal), price, and application.

India’s reliance on coal is particularly pronounced, with types of coal in India ranging from high-grade bituminous in Jharkhand and West Bengal to lignite deposits in Tamil Nadu and Gujarat. These regional variations shape coal price dynamics, logistic strategies, and energy security. The price factors we explored, affected by grade, domestic versus imported coal, transportation costs, demand-supply cycles, and government regulations, underscore the complexity of managing a coal-based energy portfolio.

Looking ahead, balancing energy security with environmental stewardship is crucial. While coal’s economic role in job creation and industrial growth remains strong, its ecological impacts, CO₂ emissions, air pollution, and land degradation call for sustainable approaches. Clean coal technologies, carbon capture and storage (CCS), and a gradual shift to renewable energy sources represent pathways to reduce coal’s carbon footprint without compromising energy reliability.

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Frequently Asked Questions (FAQ’s)

What are the 4 types of coal?

The four types of coal are anthracite, bituminous, sub-bituminous, and lignite. Anthracite is the hardest and burns the cleanest, while bituminous is commonly used for producing electricity. Sub-bituminous coal is softer than bituminous and also used for power generation. Lignite, known as brown coal, is the softest type and has the lowest energy content.

What are the 3 grades of coal?

The three grades of coal are lithium (lowest rank, high moisture), sub-bituminous (moderate carbon, used for power), and bituminous (higher carbon, used in power and steel industries). Each grade differs in energy content, moisture, and usage. Anthracite, the highest rank, is rarer and has the highest carbon content.

What is the best type of coal?

Anthracite is the best type of coal due to its highest carbon content (above 87%) and energy efficiency.
It burns cleanly with minimal smoke and has the highest calorific value among all coal types.

How to Identify coal?

Coal can be identified by its color (black or brownish-black), hardness, luster (shiny or dull), and texture. Higher-grade coal (like anthracite) is stiff and glossy, while lower grades (like lignite) are softer and crumblier.

What is the full form of GCV coal?

The complete form of GCV in coal is Gross Calorific Value. It represents the total amount of heat released when a specific amount of coal is completely burned, including the latent heat of water vaporization.

Authored by, Amay Mathur | Senior Editor

Amay Mathur is a business news reporter at Chegg.com. He previously worked for PCMag, Business Insider, The Messenger, and ZDNET as a reporter and copyeditor. His areas of coverage encompass tech, business, strategy, finance, and even space. He is a Columbia University graduate.

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