Energy Coal Resources by EveryAvenue

VIEWS: 146 PAGES: 16

									An Overview of
World Coal Resources:
Opportunities and Challenges
 British Energy Association
 London 13 March 2008




                                   Milton Catelin
                                 Chief Executive
                              World Coal Institute
                                                                          World Coal Institute
    WCI provides                          >   PT Adaro Indonesia         Coal provides:
    a voice for coal                      >   Anglo Coal

>   Assocarboni (Italy)
                                          >
                                          >
                                              Arch Coal
                                              BHP Billiton Energy Coal   25% of world primary
                                          >
>   Associacao Brasileira do Carvao
    Mineral
                                              BHP Billiton Mitsubishi
                                              Alliance                                 energy
>   Association of UK Coal Importers      >   Carbonnes del Cerrejon

                                                                         40% of world electricity
                                              Colombia
>   Australian Coal Association
                                          >   Carbonnes del Zulia
>   British Equipment Manufacturers           Venezuela
    Association                           >   Coal India Limited
>
>
    Camara Asomineros
    Coal Association of Canada
                                          >
                                          >
                                              Consol Energy
                                              Glencore International     66%     of world steel
>   Coal Association of New Zealand       >   Joy Global
>   Confederation of UK Coal Producers    >   Mitsubishi Development
>   German Hard Coal association          >   Peabody Energy
>   Indonesian Coal Mining Association    >   Rio Tinto Ltd
>   Iranian Mines and Mining Industries   >   Solid Energy NZ
                                          >   Store Norske
>   National Mining Association (USA)         Spitsbergen
>   Philippine Chamber of Coal Mines          Grupekompant Norway
>   Shaanxi Coal Industry Bureau          >   TOTAL SA
>   Svenska Kolinstitutet (Sweden)        >   XSTRATA Coal
>   UGC Partnership Limited
                                                                                   Beilungang Power Station, China
                                 An important fuel for Britain

  UK Power Station Fuel                                 UK Coal Supply
       2007 (%)                                            2007 (Mt)


                                                                 Indonesia
          Oil    Others                                 Canada      1.5
                  6%                              USA     1.7                Others
Nuclear   1%              Coal                    2.5                         0.7         UK
 16%                      36%
                                       Colombia                                          17.0
                                          3.9

                                  Australia
                                    4.7




                                        South Africa
           Gas                              7.7                                 Russia
                                                                                 20.3
          41%




                                       Source – DBERR/HMRC



    The UK is now the largest importer of coal in Europe
         and the 4th largest importer in the world
Coal reserves and advantages

        COAL LASTS 147 YEARS
        More than twice as long
          as gas (63 years)
        More than three times as long
          as oil (41 years)
         (BP Statistical Review of World Energy 2007)




                Abundant

                Globally distributed

                Affordable
                & stable in price

                Safe & reliable
                                                                                                      Coal: an affordable fuel

                                                       Energy Price Trends (US$ per tonne of oil equivalent)

                                                                                    Oil    Gas     Coal

                                  600.0




                                  500.0
US$ per tonne of oil equivalent




                                  400.0




                                  300.0




                                  200.0




                                  100.0




                                     -
                                          1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006




                                                                                                                BP Statistical review 2007
Energy security & the thirst for oil




   “41 years at current rates of
   consumption” (BP Statistical Review)
Coal-to-Liquids (CTL): environmental performance

                       > CTL use
                          • No SOx – smog/acid rain
                          • Low NOx – acid rain
                          • Low Particulates – smog
                          • Low CO – health risks
                          • More efficient, Lower CO2
                            – climate change

                       > CTL production
                          • High concentration CO2
                            - particularly suited to
                            carbon capture & storage
  The challenge of climate change
     IPCC evidence strengthening


2007 Warming of the climate system is
unequivocal. It is very likely that anthropogenic
greenhouse gas increases caused most of the
observed increase.

2001 There is new and stronger evidence that
most of the warming observed over the last 50
years is attributable to human activities.

1995 … the balance of evidence … suggests a
discernable human influence on global climate.

1990 The unequivocal detection of the enhanced
greenhouse effect from observations is unlikely
for a decade or more.
                            Power plant efficiency improvements

                                            Supply side efficiency is
                                              important…
                                            (1% ▲ LHV Efficiency =
                                               2 – 3% ▼CO2 emissions)

                                           Reduces 1.7 GtCO2 / yr
                               >300 MW     22% ▼coal emissions
                                           5.5% ▼ global emissions
           Replace:
           < 300 MW                          …and an essential
           > 25 years old                    prerequisite for CCS



IEA 2006
                                       Carbon capture & storage (CCS)
                                                  UN Intergovernmental Panel
                                                        on Climate Change
                                                   - Special Report on CCS -

                                                 Costs of stabilising CO2 emissions
                                                 can be reduced by 30% or more by
                                                 including CCS in mitigation
                                                 portfolios
                                                 Power plants with CCS could emit
                                                 80-90% less CO2 net
                                                 Majority of CCS technologies either
                                                 “economically feasible under
                                                 specific conditions” or part of a
                                                 “mature market” now
                                                 Potential leakage
                                                 very likely < 1% over 100 years
                                                 likely <1% over 1,000 years
                                                 Huge storage capacity for
                                                 CO2 in geological formations
Sleipner, storing 1 MtCO2/yr safely since 1996
CCS: geological storage potential
                        Government views & policy developments

>   EUROPE
     • Integrated environment/energy plan - efficiency & clean technologies
     • 12 CCS demonstration plants by 2015
     • All new plant CCS after 2020
     • CCS in EU ETS

>   G8 / IEA PROCESSES

>   UNFCCC / KYOTO PROTOCOL ON CLIMATE CHANGE
     • Clean Development Mechanism

>   AUSTRALIA
     • Australian COAL 21 Fund
     • Australian emissions trading by 2012

>   USA
     • Where goes the US?
              Sustainable coal - an affordable solution
                                        Present Energy Costs


   Coal             Solar PV
                  Solar CSP
                      Ocean
                    Biomass
              Nuclear power
                 Geothermal
              Hydro (>10MW)
                       Wind
                          Oil
                Natural Gas
                       Coal
                            0              500          1000         1500        2000
                                                   US$ / MWh


                                    Projected Energy Cost in 2030

                    Solar PV
                      Ocean
                  Solar CSP
                          Oil
SUSTAINABLE         Biomass
              N. Gas (+CCS)
                Coal (+CCS)
   COAL          Geothermal
                       Wind
              Nuclear power
              Hydro (>10MW)
                                0         50      100          150      200       250
                                                    US$ / MWh

                                                          (IPCC 4th Assessment Report)
                         Sustainable coal - an essential solution

EUROPE cost/savings/funding            USA cost/savings/funding

> “Impact Assessment of the          > US Pew Centre on Climate
  Geological Storage of CO2”           Change (2008)
  (EC 2008)                             • 30 x 400 MW coal CCS
    • 10 x 400 MW coal CCS                power plants $30.1b
      power plants €9b                  • Saves $80-100b by
    • Saves €60b by 2030 in               2030 in abatement
      abatement costs                     costs

> 100% Auctioning of EUAs                • PEW suggests this
  beyond 2013 for the power                could be financed
  sector alone,                            through a levy on coal
  could raise €24b each year               fuelled power stations
  (Deutsche Bank AG, 2007)                 for 10 years of between
                                           $0.0012 - $0.0015 kWh
Financing the future


‘Valley of Death’
To foster technologies
right across the
innovation chain
requires policies that
bridge the technology
‘valley of death’ and,
where successful, can
help move technologies
on to the phase of large-
scale diffusion
Thank you
                                                  www.worldcoal.org




   “The only possible overarching solution to a long-term
  sustainable future is to develop a global mix that uses all
     options simultaneously – to combine greater energy
    efficiency improvements with more renewables, more
        nuclear energy and more fossil fuels with CCS”

                         Executive Director
                    International Energy Agency

								
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