Minister of Energy of the Republic of Kazakhstan Yerlan Akkenzhenov reported at the Government session on the measures being taken to implement the Head of State’s instruction on the development of coal generation.

He noted that in fulfillment of the instruction of the Head of State to grant the development of coal generation the status of a national project, the Government approved the National Project “Development of Coal Generation” on March 20, 2026. The document provides for the implementation of a set of investment projects with a total installed capacity of approximately 7.8 GW. The key areas of the national project are:

• Commissioning of new high-efficiency coal generation capacities based on advanced technological solutions;
• Introduction of modern emission control systems and reduction of negative environmental impact;
• Phased modernization of existing coal-fired power plants to improve their efficiency and reliability;
• Increasing coal production volumes and developing transport and logistics infrastructure;
• Improving personnel qualifications, working conditions, and strengthening social protection for industry workers;
• Attracting long-term financing and forming a sustainable investment base.

“Overall, the structure of this project is not focused on narrow development of coal generation, but on the comprehensive and holistic development of the entire industry. It is about a balanced approach that covers generation, investment attraction, development of fuel and logistics infrastructure, strengthening human resources, and related areas. This systematic approach will ensure a multiplier effect and contribute to the sustainable development of the economy as a whole,” Yerlan Akkenzhenov emphasized.

The Minister stated that Kazakhstan possesses significant coal reserves and ranks 10th in the world by this indicator — enough for more than 300 years at current production levels. The largest coal deposits are located in two main regions:

• Central Kazakhstan: Karaganda Coal Basin, Turgai Coal Basin, Shubarkol and Zhalyn deposits;
• Northeast Kazakhstan: Ekibastuz Coal Basin, Maikuben Coal Basin, Karazhyra deposit.

According to the ministry, the country’s total coal reserves amount to 33.6 billion tons. The industry is showing growth in production, ensuring stable supply to the domestic market and increasing export deliveries. The majority of extracted coal is directed to the domestic market and used in electricity generation, the housing and utilities sector, and industry. The level of coal exports remains stable. In 2025, coal production reached approximately 115.9 million tons, a 7% increase compared to 2024. Of this, 85.9 million tons were used for domestic consumption and housing and utilities needs, while coal exports reached 30 million tons. The main export destinations are the Russian Federation, Poland, Uzbekistan, Turkey, India, Malaysia, and others.

Currently, 40 subsoil users are operating in the solid minerals (coal) sector under 41 contracts. Systematic work is underway to attract new investments into the coal industry. In 2025, investment in the coal sector under working programs to contracts amounted to 305 billion tenge, and in 2026 it is expected to reach approximately 553.5 billion tenge.

“It should be noted that about 32,000 people are employed in the coal industry. With sustainable development of this sector, an increase in jobs is expected. The ministry pays special attention to the development of geological exploration in the coal sector. By the end of this year, an auction is planned for granting subsoil use rights to approximately 10 coal deposit sites,” Yerlan Akkenzhenov added.

It was noted that in August 2025, the functions of the competent authority in the coal industry were transferred to the Ministry of Energy of the Republic of Kazakhstan, which made it possible to consolidate state regulation of the sector and ensure a comprehensive approach to its further development.

Special attention is being paid to the development of coal geological exploration. By the end of the current year, an auction is planned for granting subsoil use rights for approximately 10 coal deposit sites.

Within the framework of the National Project “Development of Coal Generation”, special emphasis is placed on the application of “clean coal” technologies aimed at improving the environmental friendliness and efficiency of coal generation. This includes the construction of high-efficiency coal-fired power plants using advanced technological solutions that ensure high efficiency and reduced specific emissions.

In parallel, the introduction of modern flue gas cleaning systems, including deep filtration technologies for capturing particulate matter and heavy metals, will significantly reduce the negative environmental impact. A promising area is the development of coal gasification, which opens opportunities for more environmentally friendly use of coal resources. The implementation of these measures is expected to bring coal generation to a qualitatively new technological level, increase its competitiveness, and ensure a balance between economic development and environmental requirements.

As a result of the national project implementation, the following key effects are expected:

• Reduction in the wear level of main generating equipment and increased reliability of the energy system;
• Reduction of pollutant emissions at coal-fired power plants by 34%;
• Introduction of modern “clean coal” technologies ensuring environmental sustainability of the industry;
• Improvement of energy efficiency at coal-fired power plants and reduction of specific costs for electricity production;
• Creation of new jobs and development of industrial and related infrastructure.

The National Project provides for the comprehensive development of generating capacities, including the construction of 8 new coal generation facilities with a capacity of 5.3 GW, as well as the modernization, expansion, reconstruction, and technical re-equipment of 11 existing energy sources with a capacity of 2.5 GW.

One of the key areas in the development of the coal industry is the development of coal chemistry. Currently, 3 projects are being implemented in the coal chemistry sector:

• Construction of a metallurgical coke plant with a capacity of 1 million tons per year, costing $132 million, in the Karaganda region;
• Two projects for the production of diesel fuel from coal with a capacity of 100 thousand tons each in the Pavlodar and Karaganda regions, costing $63 million and $65 million, and creating 1,160 and 1,250 jobs respectively.

Another 3 projects are at the development stage:

• Coke-chemical production in the Karaganda region, including processing of coal tar up to 200 thousand tons/year, benzene production up to 35 thousand tons/year, coke gas purification of 145 thousand m³/hour, and biochemical wastewater treatment up to 250 m³/hour;
• Production of up to 300 thousand tons/year of ammonia and 300 thousand tons of carbamide in the Abai region;
• Production of 2 billion m³/year of gas from coal (location to be determined).

“The coal industry retains its strategic importance for the country’s economy, ensuring energy security and export potential. Kazakhstan’s rich coal resources will allow the creation of new production facilities in the coal chemistry sector. At the same time, the development of coal chemistry is accompanied by factors such as high capital intensity, technological complexity of projects, limited experience in implementing modern technologies, the need to develop human resources, and the regulatory framework still being formed,” Yerlan Akkenzhenov noted.

At the same time, positive effects for the economy are expected, including:

• Reduced dependence on petroleum product imports;
• Formation of new high-tech industries;
• Creation of jobs and development of regional economies;
• Expansion of export potential for deep-processed products;
• Increase in the added value of the coal industry;
• Growth in coal production and exports.

Further development of the industry will be linked to increasing the depth of coal processing, attracting new investments, technological modernization of mining operations, and the development of the coal chemistry direction.

An important area for improving industry efficiency is digitalization. Currently, digital services for monitoring the autumn-winter period, digitalization of tariff regulation, and artificial intelligence solutions for diagnosing thermal and electrical networks are being implemented in the electric power industry. These measures are aimed at improving the reliability of energy supply, increasing process transparency, and reducing production costs.

In addition, considering coal’s key role in electricity and heat generation, the ministry is working on the introduction of a “Coal Distribution” subsystem as part of the Unified State System for Management of the Fuel and Energy Complex. To date, a model of current processes has been developed and specifications for the software are being formed, allowing the transition to building the target architecture for digital coal distribution management. The implementation of this subsystem is aimed at eliminating systemic imbalances in the industry, including imbalances in supply and demand, limited transparency in distribution, and inefficient logistics.

“The implementation of the project will create a single digital contour for state-level coal distribution management, ensuring operational monitoring, forecasting, and management decision-making, as well as increasing transparency, manageability of distribution, and optimization of logistics. The ministry will continue systematic work to maintain the positive dynamics of development in the coal industry and generation,” Yerlan Akkenzhenov concluded.

#Energy #Government session #President's instruction

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