But tighter EU environmental regulations, not least so the Large Combustion Plant Directive, which came into force this month, mean the clock is ticking on most of Europe's existing coal-fired plant. What can replace it to offer cheap and reliable baseload plant without the emissions? Renewable energy is expanding rapidly, but nowhere near quickly enough to replace coal. Nuclear energy is back on the agenda, but even if a raft of new nuclear plants were approved tomorrow, they'd barely replace the existing nuclear plant due to be decommissioned over the next decade, and new nuclear would take that long, at least, to come on stream. Gas is cleaner than coal and is still growing fast in countries like Spain and Italy, but too much gas poses security of supply concerns because of dependency on Russian and Algerian supplies, and, with the indexation to $100-oil, gas isn't cheap these days.
So there we come back to coal. Could clean coal technology, especially with the addition of carbon capture and storage technology (CCS), replace Europe's existing coal plant?
In Britain last week local councillors in Kent gave their approval to plans by E.ON UK to build a new clean coal plant on the site of its existing Kingsnorth power plant near Rochester. The decision to build the plant ultimately rests with the UK central government, but if it does go ahead, it would be the first new coal-fired plant in 24 years, and could clear the way for many more, according to Greenpeace, which warns that without CCS, the 1.6-GW Kingsnorth plant would emit 8 million metric tons of CO2 per year, when the UK is already struggling to meet its Kyoto commitments. E.ON has said CCS technology could be retrofitted to Kingsnorth, but nothing is definite.
In Germany too, Greenpeace is alarmed that plans for new coal-fired power plants would stop the country--in spite of its green credentials--from meeting its targets. As Platts Power in Europe reported in December, no less than 24 new coal- and lignite-fired power plants are lined up for construction in Germany, with estimated combined annual emissions of 130 million metric tons/year over their lifetime, says Greenpeace. Seven have already been permitted and permits are pending on a further 13. Yet, Germany has committed to cut CO2 emissions by 270 million mt/year by 2020.
Whether "clean" or not, coal produces large amounts of CO2, and until CCS is proved, there are obvious concerns that any new coal-fired plant flies in the face of climate change goals. But what is the alternative?
--Paul Whitehead, Managing Editor Platts EU Energy, Henry Evans, Managing Editor Platts Power in Europe
