Due to the rising energy demand, COVID-19’s economic recovery has put more emphasis on coal. In the next year, energy demand is predicted to reach an all time high. Furthermore, Senator Joe Manchin’s thumbs down on President Biden’s Build Back Better bill proposal is expected to benefit coal producers. Given this backdrop, we think coal stocks China Shenhua (CSUAY), SunCoke (SXC), and Hallador (HNRG) could be solid bets this winter.Rapid economic recovery from the COVID-19 crisis has caused coal to rise again in prominence as a resource to meet the country’s energy needs. The amount of coal-generated electricity is expected to surpass all records this year. International Energy Agency, (IEA), predicts that worldwide power generation from coal will increase by 9% between 2021 and 10,350 terawatts. This is an unprecedented high. Meanwhile, demand for coal is projected to rise to record levels in 2022 despite this drive to produce cleaner energy. Coal has also enjoyed a competitive advantage due to its high prices.

In addition Democratic Senator Joe Manchin from West Virginia has said no to the Biden administration’s proposed Build Back Better bill, which contains $555 billion spending to shift the country toward renewable energy sources. Manchin’s negative position is aligned with his state’s coal interests. Gregory Wetstone, President and Chief Executive of the American Council on Renewable Energy, said, “All of the prior conversations had been along the lines that he did not want to penalize fossil fuel.”

The price of coal is $149 per ton this year, which represents an increase in prices by 121.2%. Therefore, we think coal stocks with sound fundamentals, China Shenhua Energy Company Limited (CSUAY), SunCoke Energy, Inc. (SXC), and Hallador Energy Company (NASDAQ:), might be ideal additions to one’s portfolio this winter.

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