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WCA Welcomes Latest Report from IEA’s Coal Industry Advisory Board

LONDON – The international coal industry has welcomed the publication of an important new report by the IEA’s Coal Industry Advisory Board (CIAB) calling it an important step on the pathway to near-zero emissions coal.

Speaking about the release of the report, 21^st Century Coal – Advanced Technology and Global Energy Solution, Milton Catelin, Chief Executive of the World Coal Association (WCA) said: “This report is an important piece of advice to the International Energy Agency and global policymakers on the role of coal in a carbon-constrained world. It demonstrates a clear technological pathway to providing cleaner energy access to the 1.3 billion people who lack it. We call on the IEA and other policymakers to heed the findings and latest recommendations of the CIAB’s report.”

The key message of the report focuses on improving efficiencies for advanced coal-fired power generation as a first step to reducing CO₂emissions. It states: “An estimated 59 GT of reduced CO₂ emissions from coal power could have been achieved, had new coal units over the past 50 years used the highest efficiency technology available when built”.

The report also highlights the transformational potential of CCUS (Carbon Capture Use and Storage) for achieving near-zero emissions from coal-fired power generation, including using EOR (Enhanced Oil Recovery) to strengthen the business case for CCS.

In its conclusion, the CIAB report states that: “Coal will remain the cornerstone fuel in the global energy economy for decades to come. In 2013, the IEA should leverage its stature and undertake a special initiative to re-educate OECD leaders on this and other aspects of world energy. Such an initiative would be highly constructive by contributing to a greater understanding of crucial energy issues on the part of policymakers and the public they serve. In turn, such understanding would enhance prospects for consensus between developed and developing world leaders on balanced policy measures to achieve the dual benefits to human civilisation resulting from increased energy access and advanced emissions technology.”

Milton Catelin said: “Energy access and climate change should be treated as integrated priorities. We urge governments, the international community and the IEA to recognise that the increasing demand for coal means its central role in the global energy system cannot be ignored. The IEA has a responsibility to educate the global community that coal and clean coal technologies are here to stay and will be an essential part of the global climate solution.”

“We need to get serious about deploying carbon capture and storage – for gas as well as coal. But we can take much more effective, affordable and immediate action by supporting the deployment of high-efficiency, low-emission coal-fired power plants. The IEA’s own research has shown that deploying modern, highly efficient coal plants can reduce CO2 emissions by as much as 30% from coal-fired power generation and it can do this at a much lower cost than renewable energies. That means there are huge economic and climate benefits from building more efficient coal-fired power stations.”

Notes

The World Coal Association was founded in 1985 and has been working on behalf of the global coal industry for 28 years. WCA’s Members comprise the world’s major international coal producers and stakeholders. Membership is open to companies and not-for-profit organisations from anywhere in the world. The WCA provides a voice for coal in international environment and energy forums, presenting the case for coal to key stakeholders worldwide.

The Coal Industry Advisory Board (CIAB) is a group of high level executives from coal-related industrial enterprises, established by the International Energy Agency (IEA) in July 1979 to provide advice to the IEA on a wide range of issues relating to coal.

CIAB Members are drawn from 20 countries accounting for over 85% of world coal production. Members also represent major electricity producers, together with other coal consuming industries and coal related organisations. The CIAB supports the IEA in delivering its responses on climate change, clean energy and sustainable development, as well as advising on issues for coal relevant to world energy security. To download a free copy of the report, click here.

March 21, 2013 | Categories: CCS, Climate change, Coal News

Long live the King

Milton Catelin, Chief Executive, WCA

This week it was reported that Mayor Bloomberg, speaking at a US Department of Energy-sponsored advanced energy conference near Washington, proclaimed coal to be a ‘dead man walking’:

“Even though the coal industry doesn’t totally know it yet, or is ready to admit it, its day is done. It used to be said that coal is king… here in the US, I am happy to say, the king is dead. Coal is a dead man walking” - Mayor Bloomberg

This is the latest soundbite to come out of Mayor Bloomberg’s ‘Beyond Coal’ campaign, a joint initiative with the Sierra Club where the aim is to secure the retirement of a third of the coal-fired power stations in the US.

But here are the facts that the campaign has not yet shared:

Coal accounts for 41% of the world’s electricity generation – and this is set to increase (IEA).
By 2030, coal will be the most widely used fuel worldwide as developing countries electrify burgeoning cities and rural areas (IEA).
The Energy Information Administration has estimated that coal will still account for as much as 35% of electricity generated for at least 30 years in the US.
In 2011, 42% of nearly 4 trillion kilowatt hours of electricity in the US used coal as its source of energy (EIA).
If you add it up, the energy potential of American coal exceeds that of all the oil in the Middle East.
Coal is key to ensuring America’s electricity supply is affordable and reliable.

It is important to remember that increased coal use brings economic advantages and enhances energy security for Americans just as it does in other countries. The good news for the world is that it is also possible to reconcile the use of coal with climate change targets. Investment in advanced low-carbon technologies, such as CCUS (carbon, capture, use and storage), as well as improved efficiency at coal-fired power stations will be key to meeting those targets.

March 7, 2013 | Categories: CCS, Climate change, Energy access

Is 2013 the year we finally get serious about CCS?

Milton Catelin, Chief Executive, WCA

Last month, the International Energy Agency renewed its calls for action on carbon capture and storage (CCS) in 2013 on what it describes as a “critical element to limiting climate change”. The IEA’s Juho Lipponen, made the point that “fossil-fuel CCS is particularly important in a world that currently shows absolutely no sign of scaling down its fossil fuel consumption”.

CCS has a unique role to play in the global transition to a sustainable low-carbon economy, in both power generation and industry. IEA analysis suggests that CCS will play a vital role in worldwide efforts to limit global warming, contributing around one-fifth of required emissions reductions in 2050. For CCS to reach this potential, around 100 CCS projects would need to be implemented by 2020 and over 3000 by 2050. Further analysis by the IEA in their Energy Technology Perspectives report also shows that climate change action will cost an additional US$4.7 trillion without CCS.

The deployment of all low carbon and renewable technologies has been well behind schedule and CCS is no exception; however, the good news is that the necessary technologies for CCS have been proven by many industries over several decades. The Global CCS Institute lists more than 70 large-scale integrated CCS projects across the world in various stages of development. The IEA has stressed that it is critical that as many of these projects as possible reach fruition this decade to perfect the technology and show CCS’s value and safety to the public.

But the distinct lack of urgency in deploying CCS reflects a general lack of political will on climate policy, as well as a reluctance to spend in the current economic climate. Both will need to change if we are to see any serious increase in large scale demonstration of CCS. What we have seen instead of government action and investment in CCS is, frequently, a lot of rhetoric and a switch to unabated gas. This is not a long-term solution to the challenge of climate change.

The IEA highlights a number of priorities to ‘re-energise’ the deployment of CCS globally. But perhaps the most critically important short-term issue, according to the IEA, is to develop practical incentive policies, with successful policies for renewable energy potentially serving as models for CCS deployment. And on that, we couldn’t agree more.

The IEA is revising its CCS technology roadmap, with the new version expected in spring 2013.

February 20, 2013 | Categories: CCS, Climate change

Coal ‘renaissance’ in Europe?

Milton Catelin, Chief Executive, WCA

I have been reading in the press recently about a new surge in coal use across Europe – a much vaunted ‘renaissance’ of coal. The Financial Times reports on an ‘EU coal revival’ and the Washington Post speaks of Europe as a new and voracious consumer of coal. The coverage has been largely negative, focusing almost entirely on climate implications and ignoring the benefits of coal as an affordable and reliable fuel.

It’s interesting that the media have been so quick to characterise this rise in US exports to Europe as a ‘renaissance’ for coal in Europe. Anyone who has followed energy news over the past decade will recall similar stories about a nuclear ‘renaissance’ and a renewables ‘surge’. All such reports are simplistic and demonstrate the journalistic need for sound bites more than anything else.

Coal has always played a vital role in Europe and the fact that the use of coal is now growing in Europe is simply down to economics. Coal is an affordable fuel and it’s coming from a competitive international market. At a time when economies across Europe are in turmoil, they have been fortunate to be able to turn to such an affordable fuel to meet their energy needs.

Source: U.S. Energy Information Administration / Washington Post

It’s expected that criticism will be levelled at any increase in coal usage because of climate change goals. But this is also simplistic. It is important to remember that increased coal use brings economic advantages and enhances energy security for Europeans just as it does in other countries. The good news for the world is that it is also possible to reconcile the use of coal with climate change targets.

Improved efficiency at coal power plants offers one of the few large scale and low hanging mitigation opportunities before the world. Improving average global coal plant efficiency from its current 34% to merely 40% (with off the shelf technology) would reduce CO2 emissions globally by 2 Gt – the equivalent of running the EU Emissions trading Scheme for more than 50 years at its current rate of mitigation return!

Carbon capture and storage is also key – and not just for coal. Those groups lamenting the growth of coal in Europe at the expense of gas are ignoring the fact that unabated gas is not a solution to climate change. The IPCC and the IEA say that all fossil fuels need CCS, not just coal. To criticise the growth of coal in Europe simply because it is replacing unabated gas demonstrates a short-term outlook. Climate change is a long-term challenge and requires long-term thinking. This means investing in all low-carbon technologies and creating policy frameworks to encourage these investments.

February 13, 2013 | Categories: CCS, Climate change, WCA

Coal vital to meeting energy access targets

19 December 2012

London – The World Coal Association (WCA) has today called on the International Energy Agency (IEA) to recognise the importance of coal in meeting global energy access objectives.

At the launch of the latest “Medium Term Coal Market Report” (MCMR), the head of the IEA Maria van der Hoeven, made comments that implied the world should turn to gas to reduce coal demand and meet climate change objectives.

The IEA forecasts a growing role for coal in the world’s energy supply over the next five years, potentially surpassing oil as the world’s biggest supplier of primary energy.

Milton Catelin, Chief Executive of the WCA, commented: “Unfortunately, many still only see coal use through the lens of climate change. They lament the increasing role coal has in meeting the world’s ever-growing energy needs because of the associated carbon emissions. From today’s launch of the MCMR it seems the head of the IEA, Maria van der Hoeven, is firmly within this group. While her comments highlight the need to reduce carbon emissions to meet global climate objectives, she appears to completely ignore the importance of coal to meeting global energy access objectives.

“These two global challenges, energy access and climate change, should be treated as integrated priorities. Governments, the international community and the IEA need to recognise that the increasing demand for coal means they must treat it as part of the climate solution, not part of the problem.

“Ms van der Hoeven is right that we need to get serious about deploying carbon capture and storage – for gas as well as coal. But we can take much more effective, affordable and immediate action by supporting the deployment of high-efficiency, low-emission coal-fired power plants. The IEA’s own research has shown that deploying modern, highly efficient coal plants can reduce CO₂ emissions by as much as 30% from coal-fired power generation and it can do this at a much lower cost than renewable energies. That means there are huge economic and climate benefits from building more efficient coal-fired power stations.

“It’s time to add a development filter to the climate lens when looking at coal’s role in the global energy mix. This report from the IEA is good news for the developing world when it comes to meeting their energy access challenges. But there is good news too when it comes to coal’s role in meeting global climate ambitions. It’s time for this role to be recognised.”

–ENDS—

Notes to Editors

The World Coal Association was established in 1985. It comprises the world’s leading international coal producers and stakeholders. Membership is open to companies and not-for-profit organisations with a stake in the future of coal from anywhere in the world. The WCA provides a voice for coal in international environment and energy forums, presenting the case for coal to key stakeholders worldwide.

For further information, please contact:

Katie Warrick, Director – Communications
kwarrick@worldcoal.org
t: +44 (0) 20 7851 0052

December 19, 2012 | Categories: CCS, Climate change, Energy access, WCA

Coal Industry Welcomes Callide Oxyfuel Demonstration Project

The Australian Coal Association (ACA) today welcomed the opening of the Callide Oxyfuel Demonstration Project in Queensland as a vitally important step towards low emissions coal technology development in Australia.

The Australian coal industry initially committed $67.9 million to the Callide Oxyfuel Project through its world-first, one-of-a-kind voluntary COAL21 Fund.

Following the Australian Government’s announcement of additional funding of $13 million to extend the demonstration phase of the project, the Australian coal industry will commit a further $9 million to allow the project to run well into 2014.

ACA Deputy Chief Executive Officer, Greg Sullivan, said the project is a landmark joint initiative between Australian and Japanese industry and governments driving the demonstration of technologies to reduce emissions from power generation.

“The project is hugely significant because it is a first-of-kind demonstration project, underlining the potential for new build and retro-fitting existing power stations with carbon capture technology in Australian conditions using Australian coal,” said Mr Sullivan.

“Retrofitting the global, fossil-fuelled power station fleet will be essential if the world is to materially reduce its greenhouse gas trajectory”.

“According to the International Energy Agency (IEA), installed coal-fired generation capacity around the world is currently 1.6 million megawatts (MW). More than 20% of this fleet is less than five-years old and more than half is younger than 20 years. The World Resources Institute estimates that another 1199 new coal-fired plants, with a total installed capacity of more than 1.4 million MW, are being proposed globally across 59 countries.

“To put this in perspective, Australia has around 30,000 MW of coal-fired generation capacity providing three-quarters of our electricity needs.

“The reality is that coal will continue to play a major role in energy generation for decades, which is why any meaningful response to climate change must address emissions from the use of coal. Projects like Callide Oxyfuel are an essential piece of the puzzle.”

“According to the IEA, broad deployment of CCS could deliver 20% of the emissions reductions needed to stabilize CO₂ concentrations in the atmosphere and avoid the worst impacts of climate change by 2050. The IEA is clear that without CCS, the costs of achieving these reductions would be 70% higher,” said Mr Sullivan.

“We note that a number of environmental NGOs around the world have recently backed CCS as a key component in the global effort on climate change. It is encouraging to see the debate begin to move away from a simplistic debate about so called good and bad fuels and towards a comprehensive suite of solutions including CCS alongside renewables.”

The Callide Oxyfuel Project is a joint venture between CS Energy, Australian Coal Association Low Emission Technologies (ACALET), Xstrata Coal, Schlumberger, and Japanese participants, J-POWER, Mitsui & Co., Ltd., and IHI Corporation.

The project was awarded $50 million from the Australian Government under the Low Emissions Technology Demonstration Fund. The Callide Oxyfuel Project has also received financial support from the Queensland and Japanese Governments and technical support from JCOAL.

———————————-

Australian Coal Association media release

For more information contact: Jai McDermott, General Manager Public Affairs, Australian Coal Association: Jai.McDermott@australiancoal.com.au

December 15, 2012 | Categories: CCS, Climate change

Industry Body Calls for New Coal Strategy

CoalImp, the Association of UK Coal Importers, has called for a new coal strategy to complement the Government’s gas strategy, announced today.

Nigel Yaxley, managing director of CoalImp said: “This year approximately 40 per cent of the UK’s electricity has been generated from coal, and at times it has been supplying over 50% of demand.

“UK consumers have been protected from the full impact of high prices of gas-fired electricity by the diversity of our power generation system, which can still benefit from the reliability, flexibility and relatively low cost of coal, the world’s most abundant fuel.

“Last week’s Energy Bill was rightly concerned mainly with future investment, but by failing to acknowledge the importance of coal today the Government risks a less competitive UK economy tomorrow.”

Nigel Yaxley added that Government plans for long-term decarbonisation of the electricity system must not rely too heavily on any one fuel or technology.

“CoalImp fully welcomes the Government’s commitment to Carbon Capture and Storage (CCS), but there is a risk that it is too little too late,” he said. “CCS is crucial in a world context where coal remains the fastest growing fossil fuel, and a recent report has confirmed that CCS has the potential to compete with other low carbon forms of energy by the 2020s.”

The managing director of CoalImp has also noted Energy and Climate Change Secretary Ed Davey’s warning that development of UK shale gas resources will not lead to an era of cheap gas.

“This is one of the main reasons we have called for the development of a new strategy for coal,” he explained. “It’s vital we ensure that the UK can continue to benefit from the world’s most abundant and low cost fuel at the same time as leading the way to a future where coal is utilised in a clean and fully sustainable manner.

“Failure to do this will mean the UK’s extensive coal infrastructure and associated jobs will be lost, the electricity system will lose valuable diversity, and prices will rise.”

“By providing low cost, reliable electricity, coal can already address several of the most pressing issues facing the UK energy sector. Carbon capture and storage would mean it can also be low carbon. A clear bridge is needed from today, when coal is still generating 40 per cent of our electricity from the reliable workhorses we take for granted, to the CCS-equipped plants of the future.”

For Additional Information

Email: nigelyaxley@coalimp.org.uk

Notes for Editors

CoalImp, The Association of UK Coal Importers, is the trade association for companies involved in importing coal to the UK, including major end-users, rail companies, ports and other companies with a physical presence in the supply chain.

At 39.5%, more electricity was produced from coal over the first nine months of this year than from any other fuel source (gas 26.9%, nuclear 20.6%, others (including renewables) 13.0%). The UK consumed 62.1 million tonnes of coal in the twelve months to September 2012, including 52.7 million tonnes in power stations. Coal imports to the UK over this period were 42.8 million tonnes, representing over two thirds of the total supply. (Source – DECC statistics)

The Carbon Capture and Storage Cost Reduction Task Force interim report confirming that CCS has the potential to compete with other low carbon forms of energy by the 2020s is available via the DECC website.

Secretary of State Ed Davey’s comments on shale gas were reported in the Guardian newspaper on 28th November

December 5, 2012 | Categories: CCS, Coal News

3rd European Coal Days – joint statement of CEEP, EURACOAL and WCA

BRUSSELS, 15th November, 2012 – The 3rd European Coal Days, hosted by MEPs Ehler (EPP, Germany) and Marcinkiewicz (EPP, Poland), concluded today in the European Parliament with a breakfast event chaired by MEP Garriga Polledo (EPP, Spain) and the launch of a new strategy for clean coal.

Jointly organised by the European Association for Coal and Lignite (EURACOAL), the World Coal Association (WCA) and the Central Europe Energy Partners (CEEP), the three-day event saw coal industry leaders from around the world gather in Brussels to meet with politicians and officials. Together, they examined the future of coal in Europe and the world at workshops in the European Parliament, a high-level dialogue in the EESC and a European Energy Forum dinner debate chaired by MEP Buzek (EPP, Poland).

Participants heard from the International Energy Agency, the Electric Power Development Company (EPDC or J-Power) of Japan, Eskom in South Africa and the TharPak Consortium in Pakistan about how modern clean coal technologies can offer high-efficiency and low-emission power generation at an affordable cost. These technologies allow both developed and developing nations to meet growing electricity demand cleanly and competitively. Coal’s contribution to poverty alleviation was examined with the stark conclusion that many EU citizens live in energy poverty and would benefit from a more open internal energy market in which coal could compete freely. Competitively priced energy would also help to restore industrial competitiveness in the EU.

A common theme throughout the Coal Days was the steps that need to be taken to a more sustainable future. Coal is the world’s fastest-growing source of energy and will remain indispensable as global energy demand rises. It is, after all, the world’s most abundant fossil fuel and successfully competes against other energy sources. The common challenge for all 90 coal-using nations is to reduce emissions of CO2 whilst maintaining a competitive energy supply. This challenge lies at the very core of sustainable development: governments must balance economic development with social needs and quality of the environment. The following three-step clean coal strategy, launched during the Coal Days and supported by CEEP, EURACOAL and WCA, responds to this challenge:

1. Introduce state-of-the-art technology across the EU coal-fired generation sector to boost efficiency and reduce emissions.

2. Develop the next generation of high-efficiency flexible technologies for coal-fired electricity generation.

3. Demonstrate and deploy CO2 capture and storage (CCS) at coal-fired power stations around the world. page 2 of 2

To facilitate these steps to a cleaner future, policy makers everywhere must:

• encourage what is possible today – power plant modernisation and renewal;

• prepare for what will be possible tomorrow – R&D;

• plan for the day after tomorrow – the deployment of CCS;

• set clear long-term targets and refrain from making short-term interventions; and

• invest in CO2 transport infrastructure so that CCS can deliver its potential.

With a clear, long-term framework and with a government commitment to a CCS infrastructure, industry can get on with its job of investing for the future. This is demonstrated today with some new investment in modern coal-fired power plants around Europe, but the investment is insufficient. To quickly reduce emissions, the EU’s 230 GW of coal-fired power plants require faster renewal and modernisation – three times faster than today. A long-term commitment to clean coal as a necessary part of a diverse energy mix would allow industry to raise finance and deliver tangible benefits, including a more than 30% reduction in CO2 emissions from the oldest plants with the construction of new, more efficient coal-fired plants that are ready for CCS, once this technology is commercial.

The clean coal strategy has been submitted to the European Parliament and the European Commission as the latest “voice” of organisations tackling coal issues.

November 15, 2012 | Categories: CCS, Climate change, WCA

Milton Catelin calls for increased investment to fund CCS

In an interview with The Guardian newspaper this week, WCA Chief Executive Milton Catelin called for increased investment to fund the development of CCS technology and demonstration.

In the article, Milton highlights that capturing the carbon dioxide from power stations and storing it permanently underground is essential to tackling climate change. However, carbon capture and storage (CCS) technology receives less investment than other low-carbon technologies – the Global Subsidies Initiative has found that nuclear and renewable energy projects (excluding hydro-electricity) receive $45bn (£28bn) and $27bn (£17bn) in subsidies respectively each year. In comparison, since 2005, only $12.2bn (£7.5bn) has been made available in total to fund CCS demonstration.

Read the full article here.

October 31, 2012 | Categories: CCS, Climate change

Coal companies prove commitment to CCS

Aleksandra Tomczak, WCA Policy Manager

The world’s second largest coal producer, Shenhua Group, is behind China’s first CCS demonstration project. The project captures CO2 from a coal-to-liquids plant in Ordos, Mongolia and stores it in underground saline aquifers. This is the first operating CCS project in China, out of the total of ten which are at various stages of development.

Decision-makers and NGOs like to call on coal producers to take more interest in climate change and in CCS, often ignoring the fact that the coal industry has already taken steps to support CCS demonstration.

For five years already American and Chinese coal producers have been co-financing GreenGen – one of the first CCS demonstration projects to be launched in China. In the USA, the country’s largest coal producers co-finance another CCS demonstration project – FutureGen 2.0 which is on track to to begin carbon storage and power production in 2017. It has also been six years since Australian coal producers established a fund worth AU$1 billion to finance CCS by introducing a voluntary levy on their coal production. This is more than has been spent so far on CCS by the Governments of UK or Norway – two countries which claim to be the leaders of CCS.

August 8, 2012 | Categories: CCS