The Future of Coal – The economic prospects of advanced coal technologies have never seemed so promising.

Despite all of the attention given to wind and solar power, the development and deployment of advanced coal technologies may be far more important in shaping our energy future. Consider where world energy use and research is headed. Coal, and other fossil fuels, remain the backbone of the global energy system and will remain so for the foreseeable future.

If the politics of coal have never seemed so anguished, the economic prospects of advanced coal technologies with higher generating efficiencies have never seemed so promising. Not so far into the future, several new coal technologies are expected to come into greater commercial use in the United States. The best known are new pulverized coal combustion systems, operating at increasingly higher temperatures and pressures, and plants with an integrated gasification combined cycle. Increasing the average efficiency rate of the U.S. coal fleet from 33 to 40 percent using these available technologies would reduce coal-plant emissions by between 14 and 21 percent.

And there may yet be cost-cutting breakthroughs in the development of techniques to capture carbon emissions from power plants – both coal and natural gas units — and use the carbon to produce petrochemicals, plastics and other useful products. Researchers at the Massachusetts Institute of Technology and other leading universities are trying to come up with the answers.

Global warming will continue unless all countries reduce carbon emissions. That’s because most countries burn coal, which is responsible for about 45 percent of the world’s carbon emissions. The U.S. Energy Information Administration projects that even as coal’s share of U.S. electricity generating capacity declines, its world use will rise from about 30 percent today to 50 percent by 2035.

 Its environmental impact notwithstanding, coal is a practical energy option for fast-growing economies like China and India, which don’t have large natural gas resources. These countries are determined to grow their economies and lift millions of people out of poverty, and do it at the least cost possible.
Given the certainty that coal will continue to play a large and indispensable role in electricity production, the way forward requires the deployment of innovative coal technologies to mitigate carbon emissions.

The World Coal Association says that lifting the average global efficiency rate of coal plants to 40 percent compared to 33 percent today would reduce carbon output by an amount equal to India’s annual carbon emissions, which are among the highest in the world. Some coal plants operating with ultra-supercritical technology in Europe and Japan are already achieving efficiencies in the 42 to 46 percent range.

Importantly, higher efficiencies are a critical step toward the use of carbon capture, use and storage technology, without which, it is highly improbable that global carbon emissions can be brought down to acceptable levels.

Source:

  1. @Mark_J_Perry

| US News & World Report

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Coal blocks auction for commercial mining by December

India aims to auction coal blocks for commercial mining by end- December, coal secretary Susheel Kumar told television channel ET NOW on Thursday, a move that would end monopoly of state-run firms in coal mining.

This could help the country to meet its target and produce 1 billion tonnes by 2020.

Coal accounts for about 70% of India’s power generation, and the government wants to boost domestic output to cut imports.

Despite environmental worries, India plans to continue to depend on burning coal to provide power for a population of 1.3 billion.

Indian coal companies have pithead stock – coal mined, but not supplied – of 69 million tonnes, Kumar said, adding Coal India Ltd does not need to produce more.

 

Source: HindustanTimes

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South Korean utilities fulfill plan to book US thermal coal cargoes

South Korean power generators are putting into action their stated plan to book more US thermal coal with approximately 1.5 million mt destined to arrive at Korean ports between July and September, said a market source Wednesday.

All five Korean power utilities have purchased US thermal coal cargoes for Q3 delivery, and the specification of the coal involved is understood to be 4,850 kcal/kg NAR, said one source familiar with the matter.

The shipments are coming from a port on the western seaboard of Canada, possibly Vancouver which is home to the Westshore coal terminal, said the source.

One motivation for Korean utilities to take more US thermal coal is relatively high prices of similar calorific value Indonesian thermal coal, which have fluctuated widely since late last year.

Indonesian 5,000 kcal/kg GAR grade coal was trading at $63/mt FOB Kalimantan on a 90-day basis this week, and peaked at $77/mt in mid-November 2015, according to S&P Global Platts data.

US thermal coal on a 8,800 Btu/lb GAR basis, which is equivalent to 4,880 kcal/kg NAR was trading Tuesday at $56.16/mt FOB Vancouver, according to Platts prices.

For the quickest route to Korea, across the Pacific Ocean, current Panamax cargo freight from Vancouver to Japan is $10.70/mt, indicating a delivered Japan price of about $66.90/mt CFR for US 4,850 kcal/kg NAR thermal coal.

US thermal coal can be blended with other origins, particularly higher grades from Australia and Indonesia, according to the specifications of Korean power plants, sources said.

CONSUMPTION TAX

Another spur to Korean buying of US 4,850 kcal/kg NAR thermal coal is the pending April 1 increase of Won 6,000 ($5.33/mt) in the Korean government’s consumption tax on imported thermal coal, said the market source.

“US thermal coal below 5,000 kcal/kg NAR will attract the lowest [rate of] consumption tax,” said another market source.

US thermal coal with a calorific value of 4,850 kcal/kg NAR would fit into the lowest tier of the Korean government’s consumption tax which applies to imported coal under 5,000 kcal/kg NAR, he said.

For the lowest band, the consumption tax rate is changing to Won 27,000/mt post-April 1, from Won 21,000/mt, currently.

Thermal coal ranging from 5,000 to 5,500 kcal/kg NAR attracts a higher rate of consumption tax at Won 30,000/mt from April 1, up from Won 24,000/mt at present.

And, for the upper band of the consumption tax which applies to imported thermal coal higher than 5,500 kcal/kg NAR the rate is Won 33,000/mt from April, rising from Won 27,000/mt now.

Sources close to the Korean market flagged in January that a significant quantity of US thermal coal was expected to be delivered to the Northeast Asian country later in the year.

One cargo of US thermal coal that arrived in Korea in January is understood to have traveled from a US port on the Gulf of Mexico via the Atlantic and Indian Oceans, said another market source in Korea.

Korean power companies have freight agreements that provide vessels on a long-term basis at fixed prices, providing an incentive to send ships on long voyages to Colombia or the US, sources said.

Two US coal producers with mines in the vast Powder River Basin covering the US states of Montana and Wyoming are known to have served the Korean market in the past few years, but their shipments have tailed off in recent months.

One is Signal Peak Energy — partly owned by commodities trading company Gunvor — that produces bituminous thermal coal in Montana, and ships exports via Canada’s Westshore terminal.

And the other is Wyoming-headquartered Cloud Peak Energy which produces sub-bituminous coal for customers in the US and Asia, according to the company’s website.

Korea imported 1.05 million mt of US bituminous thermal coal in the 2016 year, according to Platts data.

For the 2015 year, Korean imports were 670,000 mt for US bituminous thermal coal and 555,000 mt for US sub-bituminous thermal coal, said the data.

Source: www.platts.com

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Indian power utilities’ Apr 2016-Feb 2017 thermal coal imports fall 20% on year

Indian power utilities imported 60.38 million mt of thermal coal over April 2016-February 2017, down almost 20% year on year, according to data released by the Central Electricity Authority, seen by S&P Global Platts Tuesday.

The April-February imports registered a growth of 10.8% month on month.

Of the total quantity, 18.50 million mt was imported by 29 utilities for blending with domestic coal, while 41.88 million mt was imported by 11 utilities for power plants that use only imported coal.

Fifteen utilities did not import any coal during the 11 months of the ongoing Indian fiscal year, while no data was available for one utility.

Private sector power company Adani Power imported the largest volume of thermal coal during the 11-month period at around 14.5 million mt. Tata’s Mundra Ultra Mega Power Project followed with around 9.9 million mt.

On a monthly basis, February imports stood at 5.63 million mt, falling by around 16% year on year.

The government plans to reduce the country’s dependency on imported coal, to facilitate the consumption of the surplus fossil fuel produced by state-run miner Coal India Limited.

CEA has not assigned any targets for power utilities for the current fiscal year. However, they can procure imported coal if they find it to be more economical than using domestic coal, especially for coastal power plants.

Power utilities had imported around 80.47 million mt of thermal coal in fiscal 2015-2016 (April-March), down 11.8% year on year, and below the target of 84 million mt.

Source: www.platts.com

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Wind edges coal in Oklahoma for generation in 2016, EIA data says

Wind generation edged coal in Oklahoma for the first time in 2016 as natural gas remained the dominant fuel source for electricity, according to preliminary data from the federal Energy Information Administration.

Natural gas accounted for 46.8 percent of the state’s electricity, with wind at 25.12 percent. Coal generation was 24.65 percent, while other sources made up the rest.

Continued low natural gas prices and new wind generation connecting to the grid helped push coal into third place in Oklahoma last year. Coal generation was at almost 33 percent in 2015 and 43 percent in 2014. Natural gas and coal traded positions as the dominant generation fuel in Oklahoma since 2010, with natural gas taking the top spot four times and coal three times.

“Oklahoma is blessed with an infinite supply of wind energy and a nearly infinite supply of natural gas,” Jeff Clark, executive director of The Wind Coalition, said in an email. “They complement each other well for electric generation, with each bringing unique benefits.”

The coal used for electricity generation in Oklahoma comes from Wyoming’s Powder River Basin, one of the nation’s largest supplies of coal. Clark said using Oklahoma wind and natural gas benefits the state more.

“With these blessings, Oklahoma can power Oklahoma and doesn’t need to go to Wyoming, hat in hand, asking to buy some energy,” Clark said. “We’re pleased to see these in-state resources growing to affordably and cleanly serve the power needs of this state.”

Oklahoma joined four other states — Iowa, South Dakota, Kansas, and North Dakota — with wind providing more than 20 percent of electricity generation last year, the American Wind Energy Association said Monday. Nationally, wind accounted for 5.5 percent of electricity generation, up from 4.7 percent.

On a practical basis, state borders mean little for electricity generation, at least in the central portion of the country. Oklahoma is part of a wholesale electricity market run by the Southwest Power Pool, which includes all or part of 14 states. That means all the electricity providers in the region bid into a market. The lowest-cost generation is run first, followed by other generators based on cost until demand is met.

 

Source: Newsok.com

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