Steam coal also known as thermal coal is a type of coal used for electricity generation and burned as a solid fuel in thermal power plants. This coal produces energy by generating high temperatures through combustion. In electricity production the coal is pulverized and used in steam generators to produce electrical energy through steam power.

The electricity generated in thermal power plants is typically fed into public power grids or directly used by industries requiring electricity. These industries include energy intensive sectors such as the chemical industry, paper manufacturers, cement plants, and brick producers.

More than 90% of the world’s coal reserves consist of thermal coal. However due to their petrographic properties, thermal coals are not suitable for coking and therefore are not used in metallurgical coke production.