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Monday, 08 July 13
ECO-FRIENDLY COAL FOR CHINA - VALUE FOR THE ENVIRONMENT AND VALUE FOR THE POWER GENERATOR - BY: LINDSAY JUNIPER


COALspot.com : January 2013 saw an episode of extreme particulate pollution in Beijing 35 times worse than the safe level recommended by the World Health Organisation.  The Chinese Government Environmental Authority reported that the pollution derived from vehicle exhaust (22%), industry (16%), natural dust (16%), coal burning (17%) and unaccounted (29%).

Prompted by this episode, Lindsay Juniper, Director at Lindsay Juniper Pty Ltd and formerly the Director of Ultra Systems Technology Pty Ltd has written a paper entitled Eco-Friendly Coal for China – Value for the Environment and Value for the Power Generator. The paper’s objective is to investigate the extent to which Australian higher rank, low ash coal for power generation can contribute to a reduction in severe atmospheric pollution in a cost-effective way. In other words, the environment and power station performance can both be improved by utilizing better quality and relatively cleaner burning coals. But the quality of coals available on the seaborne market has been deteriorating in recent years so how is this to be achieved? To reverse the trend in coal quality deterioration a new, large volume source is required. China’s high ash, low rank domestic coal can be replaced with high rank, low ash imported coal soon to be sourced from Australia’s Galilee Basin.

Coal quality impacts on power station boiler efficiency.  As quality improves less coal is needed to be mined, less coal needs to be transported to exporting ports, less coal needs to be transported from destination ports to the power stations and less coal needs to be burnt.  All of these contribute to a better environmental outcome.

Coal with high ash content (20% or higher) causes power stations to emit more particulate matter into the atmosphere than if they used a lower ash (say 10%) coal. Higher levels of impurities (those coal components which do not contribute to the combustion process) such as ash and moisture cause power stations to operate at less than optimal efficiency. The higher the level of impurities, the less the energy content in the coal and the higher the volume consumed to achieve required power station outputs.  Substituting low rank, high ash Chinese domestic coal with high rank, low ash Australian alternatives such as those planned to be exported from the Galilee Basin will result in less emissions in terms of actual particulates per tonne burnt as well as lower tonnages to be transported and burnt to achieve equivalent power station output.

China’s 12th Five Year Plan provides for a limit on domestic coal production, capping it at 3.9 billion tonnes per annum from 2015.  Australian Galilee Basin coals will soon be available to support this measure by supplementing demand projected to exceed 3.9 billion tonnes in coming years with a cleaner more cost effective alternative to high ash coals.  Options for supplementing coal production beyond 2015 by switching to other technologies (e.g. gas, renewables) are not optimal as these are not all capable of consistently providing fuel for base load power generation. Gas supply is limited and hydro power plants and other renewable sources are susceptible to external forces such as the availability of rainfall, wind and sunshine. Additionally nuclear power has been stigmatised by the Fukushima disaster in Japan.

Pricing and more importantly valuing coals is no longer a simple process of adjusting the price in accordance with the energy content.  Price and value are now more accurately calculated by considering the impact the coal has on all of the purchase, transportation and utilisation costs involved in producing a unit of electricity.  This is achieved by measuring the coal’s Value-in-Use.  This calculates the impact of coal properties on the technical performance of the coal and their influence on costs within the power station including costs that relate to mitigation of any environmental impacts. Higher environmental value accrues through:

- A reduction in potentially deleterious trace element containing particulate material released to the atmosphere
- A reduction in CO emissions
- A reduction in ash disposal requirements.

In summary, it can be proven conclusively that improving coal quality contributes to an improvement in a power station’s environmental performance, and that coals need to be assessed based on the value they provide to a power station via the cost of production of electricity rather than on the simplistic basis of their cost per unit of contained energy. 
Author: Lindsay Juniper, Director, Lindsay Juniper Pty Ltd.

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