'Clean coal' may soften Wyo's low-sulfur edge
Newstracker
* Last we knew: Wyoming coal has a low-sulfur advantage over coals in the
eastern United States.
* The latest: Eastern utilities announce plans to build "clean-coal"
plants that negate the need for low-sulfur coal.
* What's next: Wyoming continues push for coal-fired power generation.
On the Web:
* American Electric Power; www.aep.com
* U.S. Department of Energy; www.energy.gov/engine/content.do
* Office of Fossil Energy; www.fossil.energy.gov
GILLETTE -- "Clean coal" may seem like a good prospect for a state
that churns out nearly 400 million tons of the fossil fuel annually to supply 35
percent of the nation's coal supply. The advantages of burning more coal with
fewer emissions are obvious.
However, Wyoming's mining and power generation industries face some
not-so-obvious disadvantages as utilities in the eastern United States move
toward technologies such as integrated gasification combined cycle, according to
a local economic development official. The technologies are aimed at converting
coal into relatively clean-burning gas.
Ed Werner, business development director for the Converse Area New Development
Organization, said Wyoming's high elevation puts coal gasification plants at
production disadvantage.
As for coal producers in the Powder River Basin, they stand to lose a
competitive edge to gasification plants.
The prolific mining district in northeast Wyoming has made huge gains in the
Eastern utility market during the past 20 years with its
"super-compliant" low-sulfur coal. But with coal gasification power
generation, sulfur actually becomes an asset because it is stripped from the
coal before combustion occurs.
"Not only can they sell the electricity out of these plants, but there
becomes a good market for good, high-quality sulfur. Sulfur is a valuable
industrial commodity," Werner said.
Werner said without its low-sulfur edge, Powder River Basin coal will likely
lose out to higher heating value coals in the East when it comes to fueling coal
gasification plants.
But don't panic. The United States has yet to build its first commercial-scale
gasification plant. The technology is on its way, however.
Last week, the nation's leading utility signed an agreement with Bechtel Power
Corp. and GE Energy to estimate the cost of building the nation's first
large-scale coal gasification power generation plant.
American Electric Power wants to build one or two 600-megawatt plants somewhere
in the eastern United States by 2010, marking the beginning of the so-called
"clean coal" era for the company. Other utilities are expected to
follow American Electric Power's lead as those in the industry hail the coal
gasification process as America's economically viable answer to meeting
projected increases in electrical demand while still complying with more
stringent air quality regulations.
American Electric spokeswoman Melissa McHenry said the construction cost of a
coal gasification plant is much more expensive than a traditional pulverized
coal plant. However, the difference is simply the added cost of meeting more
stringent air quality regulations. And the technology provides the long-term
advantage of fuel flexibility.
"Going forward, AEP has determined that if we're going to be able to
continue to use our coal resources in the U.S., we have to advance development
of clean coal technologies," McHenry said in a recent phone interview.
"The ever increasingly stringent air quality regulation throughout the U.S.
makes it essential that we invest in next-generation technology," McHenry
continued. "So really AEP has stepped up to move that technology
forward."
American Electric's 1,200-megawatt coal gasification ambition won't change the
coal market overnight. McHenry said Wyoming's coal will remain in high demand
simply because demand for electricity continues to grow, and coal is the
cheapest fuel.
In fact, American Electric plans to spend about $5 billion over the next 15
years to retrofit its existing coal-fired power generation plants -- including
pulverized coal-fired plants -- with new pollution controls.
"AEP is the largest coal-buyer in the U.S., so obviously there will be
facilities that use all different types of coals," McHenry said.
Greg Schaefer, spokesman for Arch Coal Inc., noted there are about 1,100
coal-fired electrical generation units in the United States today.
"Those aren't going away anytime soon," Schaefer said.
And the Powder River Basin's low-sulfur content, low British thermal heating
unit value doesn't prevent the coal from being burned in a gasification plant.
"We're still going to compete on price. This is relatively inexpensive
fuel," Schaefer said.
Energy reporter Dustin Bleizeffer can be reached at (307) 682-3388 or dzeffer@trib.com.
Copyright © 2005 by the Casper Star-Tribune published by Lee Publications, Inc., a subsidiary of Lee Enterprises, Incorporated