Posts Tagged ‘Clean coal’

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By Heidi Bishop

As the new administration’s impact on energy policy unfolds, increased interest in pursuing “clean coal” technologies have likely put Carbon Capture and Storage (CCS) more squarely on your radar. The new “America First Energy Plan” makes no mention of solar, wind, or other renewable energy resources but does state a commitment to “clean coal technology, and to reviving America’s coal industry, which has been hurting for too long.” For DC EcoWomen active in energy policy, this is a good time to understand the current state of the technology.

While there are several ways to reduce the various harmful emissions from a coal plant so that it can be labeled “clean coal,” most energy plans citing clean coal are referring to the use of CCS as a method for reducing the carbon content from plant emissions to protect coal as a major form of baseload generation. In short, CCS requires a means of separating CO2 from either the fuel or emissions of a power plant, capturing and stabilizing this isolated CO2 in a solid or compressing it in gas, and then storing it over centuries. CO2 can be removed from coal directly through pre-firing degasification, such as in an Integrated Gasification Combined Cycle (IGCC) plant, or through oxyfiring. CO2 can also be removed in post-processing of emissions. Both approaches are feasible, but expensive, and energy-intensive operations that require significant capital expenditures can reduce plant efficiencies by as much as 20%.

CCS is a complex technology, and there are many useful resources available from the DOE, IEA, or the Carbon Capture and Storage Association (CCSA) to learn more. In more mainstream discussions, however, here are two Clean Coal myths you might come across:

Myth 1: Clean Coal Technologies are Market-Ready

Some proponents point to existing pilots for CCS or utility projects underway as proof that the technology is proven for large scale deployment and poised for growth. While there is significant technical potential for CCS in terms of engineering feasibility and substantial amounts of potential underground storage locations, as a commercial matter CCS is still an infant technology that is likely going to be very expensive initially and is not yet available at a broad scale.

NRG’s Petra Nova plant in Texas, which is paired with enhanced oil recovery to improve its economics, is now up and running as a major success, but the majority of projects are not. Several projects have generally followed a pattern of initial public support, steep cost overruns, engineering problems, eventual public opposition, and suspension or cancellation. Such projects include Future Gen 2 in Illinois. Once the poster-child for CCS, this project was in development as early as 2006, revised beginning in 2010, and then eventually cancelled in 2015. Similarly, the Kemper County IGCC project in Mississippi, which is currently 3 years behind and $4 billion over budget, has recently found that it will be more economic for it to run on natural gas than the coal it was originally intended to use. All of which leads to the next myth…

Myth 2: Clean Coal Plus Lighter Regulations Can Bring Back the Coal Industry

Coal generation and mining have steadily decreased in past years primarily due to competition with low-priced natural gas which makes coal generation uneconomical for a lot of plants. Secondary cases are low load growth, renewable generation, and environmental regulations such as the EPA’s Mercury and Air Toxics Standards (MATS) targeting arsenic and metals air pollution from coal and oil plants.

The stayed and now-cancelled Clean Power Plan (CPP) to impose carbon emission restrictions and pricing mechanisms on the power industry is often blamed for impairing coal, but in fact those regulations were not very strong and would have had little impact on an already-suffering coal industry. For example, projections from the Energy Information Administration that do not incorporate compliance with the CPP still include significant retirements of coal resources over the next few years.

Because the falling demand for coal is driven by the availability of lower cost resources, the business case to invest in new coal generation at all is weak—especially for coal with expensive CCS which can increase costs by around 75%.

Despite all these economic forces against coal and CCS, coal generation is not going to be obsolete any time soon. Today’s existing coal plants are often fairly clean in terms of more noxious pollutants like SO2, NOX, and particulates (and can still be improved), have very long engineering lives left, and can continue running on plentiful and fairly cheap coal.

Unfortunately, we are not yet in a position to rely entirely on zero-carbon technologies like renewables because the storage technologies needed to smooth their intermittent availability to meet our consumption patterns are still too expensive for wide use. Technical and economic research in clean coal may still be valuable to address CO2 emissions in parts of the world where coal remains a critical energy supply. Gas-fired power plants also emit CO2, albeit at less than half the rate per kWh as coal, so they also eventually may need CCS. Thus, in many ways, the exact future of clean coal is unsure.

Over the next few years there will be push and pull between regional and national climate policies in the U.S. as well as changes in the economics of competing with natural gas and renewable energy. These influences, however, cannot change the facts that CCS technology is nowhere close to being advanced enough to rapidly expand overnight and that the U.S. coal industry is at best looking to be sustained rather than restored to former levels.

 

 

Heidi Bishop is a marketing and policy associate at a consulting firm based in DC. She specializes in energy policy research, identifying business development opportunities, and developing publications. She has worked on a variety of energy policy topics with a focus on new business models for electric utilities, “Utility of the Future” efforts, distributed energy resources, and retail regulatory strategy. Ms. Bishop received her BA and MBA from Salisbury University and a Master of Public Management – Policy Track, Environmental Concentration from the University of Maryland.