Analyzing Coal's Future
August 11, 2010
Ken Silverstein
EnergyBiz Insider
Editor-in-Chief
Carbon capture could become commercial within 10-15 years. And while it
holds the potential to significantly cut heat-trapping emissions, it may
be noticeably more expensive than current technologies and thereby cause
consumers to pay more.
That's the primary findings of the Government Accountability Office,
which concluded that current carbon capture and sequestration
technologies would increase the cost of power by 30 percent to 80
percent, albeit it has greater potential to reduce carbon emissions than
other ideas. The alternative to such progressive technologies is one
that centers on improving efficiency gains, or reducing the amount of
coal that is burned so as to limit emission levels.
But those "ultra-supercritical" generation technologies are expensive
and may only be worth it if the nation attaches a price to carbon and
therefore increases the costs of coal. Otherwise, utilities may find it
cheaper to build natural gas plants and particularly if the price of
such fuel remains relatively low.
"Commercial deployment of carbon capture and sequestration is possible
within 10 to 15 years while many efficiency technologies have been used
and are available for use now," says the government watchdog GAO. "Use
of both technologies is, however, contingent on overcoming a variety of
economic, technical, and legal challenges."
Among the key impediments, obviously, is the lack of legislation that
would provide direction to those utilities that must create long-term
business plans. Nevertheless, the U.S. Supreme Court has said that the
Environmental Protection Agency can move forward with plans to regulate
carbon dioxide under the Clean Air Act. As such, it plans to enact such
rules in 2011 -- unless Congress stops or delays it.
Coal now generates about half of all electricity in this country. By
2035 -- and because of pressures to reduce the level of harmful
emissions -- it is expected to provide about 44 percent of all such
power, says the U.S. Department of Energy. Coal now accounts for about a
third of all carbon dioxide emissions. To that end, the Energy
Department will spend $600 million to help commercialize advanced coal
generation technologies.
Carbon capture and sequestration is the gasification or combustion
process by which the carbon dioxide is separated from flue gases before
it would be captured. It is then compressed, transported and stored in
underground geological formations such as saline aquifers that are
comprised of porous rock filled with brine, says the GAO.
In 2007, the Energy Department estimated that the cost to install
current carbon capture and sequestration technologies was 85 percent
higher for plants that use post-combustion capture and 36 percent higher
for those coal gasification facilities that use pre-combustion
technologies. Efficiency levels for such advanced plants, though, would
be about 60 percent, or notably greater competing facilities.
Setting Benchmarks
Carbon capture and sequestration and advanced coal technologies focused
on efficiency are not mutually exclusive of one another. The two can be
used in tandem; however, the current high prices would tend to prevent
that possibility. Efficiency upgrades, meanwhile, could be made to
existing coal-fired power plants.
Those older and pulverized coal-fired plants are the least efficient
units with about 35 percent of the energy input converted to
electricity. But as more power generators opt for supercritical units
with higher water-side operating pressures the efficiencies associated
with pulverized coal units can increase to at least 40 percent.
Ultra-supercritical facilities are said to have efficiency rates of 50
percent or more.
While the existing coal-fired plants pale when compared to modern power
facilities, the aging plants won't likely be retired anytime soon.
Utilities with those plants say that they need the capacity. They also
reason that it is cheaper to retrofit them with pollution controls than
to replace them altogether -- improvements that can involve either the
use of newer supercritical coal units or pending, but ultra-clean,
coal-gasification plants.
"Gasification has been around for some time," John Mead, director of the
Coal Extraction and Utilization Research Center at Southern Illinois
University Carbondale, told this writer earlier. "But incremental
improvements can make the technology more attractive to industries that
use conventional processes. However, ultra-supercritical coal generation
can rival coal gasification in power generation applications. We need to
move on multiple fronts. From a planning standpoint, government and
industry must collaborate."
The ultimate goal, though, for coal generators is to nearly eliminate
their emissions while at the same time, burying the carbon dioxide.
Several test projects are currently underway. But the most prominent of
those is expected to be FutureGen, a 275-megawatt coal gasification
facility that aims to trap 90 percent of all carbon emissions and one
that would break ground next year, becoming operational in 2014.
American Electric Power, meantime, is testing a much smaller coal
facility in West Virginia to see if carbon can be captured and buried on
site. It is also building an ultra-supercritical coal facility in
Arkansas that it says will use less coal.
The success of all those projects is still unknown. What is clear is
that they will come with a high price tag -- but one that would purport
to significantly reduce the level of harmful emissions. GAO is saying
that energy regulators must set benchmarks by which to measure the
results. Only then will the government know how to allocate its money.
Coal-fired generation will change. Government mandates along with the
emergence of modern technologies will work in tandem to improve
efficiencies. The evolution is not just necessary to meet the challenges
of a carbon-constrained world. It is also essential to coal's future, if
it wants to remain a significant part of the global energy mix.
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