Speaking at a WCA workshop in London on Monday, Glencore's group executive, coal assets Mick Buffier said greater investment in cleaner coal was needed to meet the growing energy needs of the developing world which forms the bulk of the demand picture for coal.
“For many countries, the reality is that the only way they can meet their growing energy needs is through affordable, readily available coal,” Buffier said at the workshop with the theme “building pathways for cleaner coal technologies”
“According to the International Energy Agency, global electricity from coal is expected to grow by around 33% to 2040. Given this growth, it is essential that there is greater investment in cleaner coal technologies to widen their deployment – this includes high efficiency, low emissions (HELE) coal technologies and carbon capture, use and storage (CCUS).”
To this end, he cited the WCA’s recently launched global Platform for Accelerating Coal Efficiency (PACE) initiative, whose vision is for the most efficient power plant technology possible to be deployed when coal plants are built.
“PACE’s objective is to raise the global average efficiency of coal-fired power plants and so minimise carbon dioxide emissions, while maintaining legitimate economic development and poverty alleviation efforts,” Buffier said.
WCA’s use of the Anglo-Swiss multi-commodity trading and mining group to ram home coal’s clean credentials reflects Woodside CEO Peter Coleman’s warning at APPEA 2015 in Melbourne last month that Big Oil can’t just assume the right to be the sector to supply gas to the developing world, as coal, despite its back against the wall, was in for a fight.
The WCA used its London workshop to call on the world’s governments worldwide to recognise the “vital role” that cleaner coal technologies play in reducing global carbon dioxide emissions and to increase investment in all low emission technologies.
It cited the IEA’s 2014 World Energy Outlook whose forecasts showed that even under its New Policy Scenario (NPS), which assumes all government promises on funding of renewables and nuclear power stations are met, global electricity from coal is expected to grow by around 33% to 2040.
At the same time, renewables are projected to have grown massively by 175%, with renewables excluding hydro a staggering 517% (from a low base).
Meanwhile, WCA pointed out, the average efficiency of coal-fired power stations around the world today is 33% – well below the state-of-the-art rate of 45% and “off-the-shelf” rates of around 40%.
Moving the current average global efficiency rate of coal-fired power plants from 33% to 40% by deploying more advanced technology could cut carbon dioxide emissions every year by 2 gigatonnes, which is the equivalent of India’s annual emissions, running the European Union’s Emissions Trading Scheme for 53 years at its current rate, and running the Kyoto Protocol three times over.
The IEA’ 2014 World Energy Outlook analysed the level of policy support for renewables and estimated the total annual value of renewables subsidies in 2013 at $US121 billion ($A158.49 billion), increasing to $230 billion in 2030.
The 2012 World Energy Outlook estimated a cumulative subsidy for renewable technologies through to 2035 at $3,500 billion. By comparison, between 2007 and 2012 some $10.02 billion was spent on CCS projects, with US$7.7 billion of that amount privately financed, according to the IEA.
As a case in point to highlight WCA’s argument of the importance of clean coal technologies, Unit 3 at Boundary Dam is capable of capturing about 1 million tonnes of CO2 per year, the equivalent to taking 250,000 vehicles off the road every year.
Mike Monea, president of SaskPower’s CCS initiatives, told the WCA’s London workshop that a mix of sources was needed to meet the ever-growing demand for power, and in a way that balances affordability, reliability and sustainability. Carbon capture and storage is part of that mix. SaskPower is a pioneer in this technology, and we benefit from working with groups around the world to stay on top of new CCS developments.”
Speakers at the workshop also highlighted the role of HELE technologies, particularly as these technologies are available off-the shelf today. Hans-Wilhelm Schiffer, executive chair, World Energy Resources Programme of the World Energy Council and consultant and adviser to the executive board of RWE AG, stated: “There are very real opportunities for improved efficiencies at fossil-fuelled power plants, CCUS and the implementation of flexibility requirements for conventional power plants in order to integrate the increased feed-in of fluctuating renewable energy sources. The use of coal and the increased share of renewables is not a contradiction; electricity from coal can be key to balancing intermittent renewables”
“The WCA recognises the vital role that all low emission technologies can play and has created a global Platform for Accelerating Coal Efficiency (PACE). PACE’s vision is for the most efficient power plant technology possible to be deployed when coal plants are built. PACE’s objective is to raise the global average efficiency of coal-fired power plants and so minimise carbon dioxide emissions, whilst maintaining legitimate economic development and poverty alleviation efforts,” said Buffier.
