Coal in Tomorrow's Energy Mix

Global energy demand is constantly rising as are oil and gas prices. Against this backdrop, good old coal remains attractive. There are large reserves of coal and extracting it to produce electricity is relatively cheap. However, there are significant environmental challenges to face.

Still Abundant Resources

On a global scale, coal represented a little over one quarter of the energy used in 2007. According to the IEA (International Energy Agency), this share could jump to almost 35% over the next 25-30 years, particularly in electricity production. By 2030, according to the same estimates, the share of coal in global electricity production will rise to 44%.

There are 909 billion tons of coal reserves, enough to last 164 years.

This scenario will not have too much impact on reserves, as 20 countries, including the United States, Russia, China and India, have known reserves of over 1 billion tons. In all, it is estimated that there are about 909 billion tons of coal left worldwide, i.e. enough to last 164 years. Given the current pace of extraction, only 22% of these reserves will have been used by 2030¹.

A Serious Environmental Handicap

While coal is a promising resource from an economic standpoint, it has a significant environmental impact. For example, a large coal-powered plant producing 1000 megawatts can supply electricity to 1.6 million households. However, it also discharges about 6 million tons of carbon per year, equivalent to the emissions from 2 million cars².

Some of coal's polluting effects can be reduced by processing flue gases. However, the carbon dioxide emissions released when coal is burnt enhance the greenhouse effect and remain a serious problem. The IEA anticipates a 43% rise in global carbon dioxide emissions between 2007 and 2035. Most of this increase is due to coal, because worldwide consumption of this resource is expected to rise almost 50%.

While countries that have signed the Kyoto protocol have endeavored to reduce their coal consumption since 1995, some countries such as China still use coal extensively to fuel their growth.

Coal is an obsolete energy source.

False. Over half of the electricity produced in the United States and Germany comes from coal. In the United Kingdom, where the share of coal has fallen, it still represents 35% of electricity production. In Poland, the figure is 93% while in Japan, which relies more on nuclear energy and oil, it is only 29%. In France, where all the mines closed one after the other between the late 1960s and the early part of this century, it now represents just 5% of energy demand.

Can Coal Be Burned Cleanly?

Coal- the black sheep of environmentalists until now- will now have to clean up its act if it wants to remain competitive. Environmental policies will have to be implemented to:

   • Encourage energy savings (tax incentives, emission permit system, etc.)

and

  • Develop appropriate technologies to produce cleaner coal.

Technological opportunities are opening up, especially in the United States, where research projects are focusing on:

   • Gasifying coal to produce hydrogen for fuel cells

and

  • Capturing and storing carbon emitted during coal combustion.

One of the leading clean coal technologies is integrated gasification combined cycle (IGCC). This involves converting the coal into gas or liquid, thus ensuring 50% more efficient combustion. It can also be used in specially adapted engines like LPG (liquefied petroleum gas).

Some of the innovative pollution control techniques for coal combustion (processing flue gases) can be adapted to existing coal-burning plants. Research is also being carried out on cleaning up coal before combustion.

The future of coal therefore depends as much on innovation as political decision-making; but it will undoubtedly remain a major energy source, at least during the first half of the 21st century.

[1] OECD Observatory
[2] OECD Observatory