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^I__ ~ . _______x . . __ .

Printed ii-s the UiliZed States of America. Available f r 0 i r - iN a t o na I- ec 1 n ca In fo rmat o 7 S e v c c

U S. Department of Commerce5285 Pori Soya? Road, Springfield. Virginia 72i8;

NTIS price codes---Printed Copy: ,405; Microfiche A01

Til l s report was prapared as an account of work sponsored by an agency of theUnit& States Gowc innm t. Nsilhei he 1niied States Gounrl?:nethereof, nor any of their employees, makes any warraniy, exprassuiiles any legal liability or responsibility for the accuracy. completeness, ori.sefuIness of any information, npparatus, product . or process disclosed, orrepresznts thst its usewould not infringe privatsly awned rights. Re c:ence hereinto any specific commsrcial product, process, or service by tiade name,trademark,manufacturer, or otherwise, does not necessarily constilde or imoiv 1 2endoisemen . recommendation, or favoring by i h e LJnited Staies G o v z :any agsilcy thereof. The V ~ ~ V J Snd opinions of authors e

necessarily state or refk ct those of the uni te d StatssGo ,thereof._ _ _ ......-.._______I_ ..... _ _I____ . ......

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ORNL/T&9770

PROSPECTS FOR COAL BRIQUETTES AS ASUBSTITUTE FUEL FOR WOOD AND CHARCOK

I N U. S. AGENCY FOR INTERNATIONAL DEVELOPMENTASSIS TED COUNTRIES

R. D. Per1 ackG. G. Stevenson

R. B. She1 t o nEnergy Divis ion

Oak Ridge Nati m a l L a b o r a t o r y

Date of i ssue - February 1986

Prepared for t h eOffice @ I f Energy

Bureau o f Science and TechnologyU. S. Agency for In ternat ional Devel opmentunder Contract No. E6T-57 2 6-P- ER-4257 -01

Interagency Agrement No. 40-1485-84a s p a r t o f t h e Energy Pol i c y Development and

Canservat i on Pr oj ec t

Prepared by theOak Ridge Nati m a l L a b o r a t o r y

Oak Ridge, Tennessee 37831operated by

M a r t in Mar? etta Energy Systems, Inc.f o r t h e

U. S DEPARTMINT OF ENERGYunder Con t ract No. DE-AC05-84OR21400

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TPBLE OF CONTENTS

L I S T OF TPBLES ..................................................L I S T OF FIGURES .................................................ABSTRACT........................................................EXECUTIVE SUMMARY...............................................I INTRODUCTION...............................................11. FUELWOODDEFICIENCIES AND COAL AVA I L A B I L I T Y I NA. I. D.

ASSISTED COUNTRIES.........................................111. SMOKELESS C O P L BRIQUETTES AS A POSSIBLE SUBSTITUTE FOR

FUELWOOD................ ....................................I V. INTERNATIONAL EXPERIENCESWI W CDPC BRIQUETTING:

I N D I A AND KOREA.............................................

V. THE POTENTIAL FOR COAL BRIQUETTE SUBSTITUTIONI N A I.D. ASSISTED COUNTRIES.,..............................

V I STRATEGIES FOR REA LIZING M E POTENTI&FOR COPLBRI QUE TTIN G I N A. I.D. ASSIS TED COUNTRIES....................

APPENDIX A: COAL BRIQUETTINGANDCARBONIZATION PROCESSES,.......APPENDIX B: POTENTIAL H E K M EFFECTS OF BURNING RPWCOAL........APPENDIX C: RE VI RJOF COR. BRIQUEITTING POTENTIAL

I N A. I.D. ASSISTED COLJNTRIES........................REFERENCES.......................................................

V

v i i

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1

6

13

16

21

24

A-1

B-1

c-1

R l

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LIST OF TPBLES

Tabl e 1. FA0 q u a l i t a t i v e fu el wood d e f i c i e n c i e s i n A. 1.0.a s s i s t e d c o u n t r i e s ............................... 8

Tabl e 2. Coal a v a i l a b i l i t y i n A. 1 D. a s s i s t ed c o u n t r f e sw i t h f u el wo od d e f i c i e n c i e s e ....... ................ 11

Table 3. Cooking fue l cos t s i n Pe ru ........................... 17Tab le 4 . Po te nt f a1 of A. I. 0. ass i s ted count r I s f o r

Tabl e C. 1.

Table C.2.

Table 6 . 3 .

Table C.4,

Tabl e 6.5.

Table C.6.

Table C.7.

Table 6.8.

c o a l b r i q u e t t i n g ...................................Fuel wood energy ba l ance f o r Botswana (1961) . .Fuel wood energy b l ance f o r Morocco (19Bl.l . . .Fuel wood energy bal ance f o r Ni ge r (19811 . *..Fuel wood ene rgy bal ance f o r Tanzania (1981) . . .Fuel wood energy bal ancf f o r Zambia (1981) .. . .Fuel wood ene rgy ba l ance f o r Zimbabwe (1981) . . .Fuelwood energy balance f o r H a i t i (19791 ...........*Fuelwood energy balance f o r the Sie r ra o f

Peru (1981) .......................................

23

C-2

c-3

@-4

C-6

c-7

C-9

C-13

C-15

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LIST OF 'IG URES

Fig. 1. Percen t age o f t r a d i t i o n a l f u e l s i n t o t a l energyconsunp t ion .............................................. 2

F i g . 2 . To t a l r u r a l and u r ba n p o p u l a t i o n s a f f e c t e dby a c u t efuelwood s c a r c i t i e s a n d f u e l w o o d d e f i c i t si n1980 and 2000 ............................................ 7

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ABSTRACT

Fuel wood shorta ges and p ot on t i a1 shortag es a re widespreadthrougho ut th e devel oping world, and a r e becoming i ncr ea si ng ly morep r w a l en t because o f t h e c l easi ng o f 1 and f o r subsi stence and p l an t at i onagr i cu l t u re , excessive and i n e f f i c i sn t commerci a1 t imber ha rves t ing f o rdomestic and exp or t const ruct i on, and charcoal produc t ion t o meet r i s i ngurban demands. I t i s e st im at ed t h a t t h r e e b i l l i o n p eopl e w i l l l i v e i nacute wood sca rc i t y and wood d e f i c i t regi ons by t he year 20QQ. Further,t h e env i r o m e n t a l and socioeconomic consequences of t h e r e s u l t i n gdef ore sta tdo n ar e both pervasive and complex. There ar e th re e energyp o l i c y o p t i o n s f o r m i t i g a t i n g t h e o n s l a u g h t of d e f o r e s t a t j o n a n d t h e

1nev i t a b l e and perni c i ous e f f e c t s o f fue l wood sc a r c i t i e s --conse rva tion, r e fo re s t a t i on , and subs t i t u t i on . Th i s r e po r t focuses ont h e s u b s t i t u t i o n o f co al b r i q u e t t e s f o r fuelwood. Coal b r i q u e t t i n g i s aprocess by which raw coal i s compacted i n t o uniform, us ua ll y hardr andimpact res4 st a nt aggl omerations. A1 though subs tan t ia l adverse heal t he ffec t s cou ld be expec ted from burni ng non-anthraci te coal or coalb r ique t t e s , a we1 1-devel oped technique, carb oniz ati on, e x i s t s t o c o n v e r tcoal t o a saf er form f o r combust ion. The cos ts associa ted wi t hb r fq ue t t in g and ca rbon iz ing coa l i nd ica t e t h a t 8fsmokel sstV coalbr iq ue tt es can be produced a t o s t s com pet i t i ve wi th fue l wood andcharcoal. Coal br ique t t ing and ca rbon iza t ion have bean p rac t i cede x t e n s i v e l y i n I n di a , and t h i s ex pe ri en ce i s i n s t r u c t j v e because of t h ewlde range of tec hno log ies and coal types u t i 1 zed. The U. S Agency f o r

Internat ional Development U S A I D ) i s w or ki ng o n imp1 emanling t h i s energyo p t i o n i n H a i t i and P a k is t a n by (1) evaluating resources, 2 ) assessingmarkets, ( 3 ) analyzing techno7 ogi esr ( 4 ) st ud yi ng government pol ic y andplannings and (5) packag ing the idea f o r t h e p r i v a t e s ec t or t oimplement. A pr el iminary exarninatjcn o f o the r U S A I D a s s i st e d c o u n t r i e sI n d i c a t e s t h a t an a d d i t i o n a l f i f t e e i i c o u n t r i e s h av e t h e n ece ssa ry c oa lreserves t o become candidates f o r sonikel ess coal b r i q u e t t i ng.

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INTRODUCTION.

11.

W E U.S. KiENCY FOR INTERNATION D ~ V ~ O ~ ~ ~ N ~A. I D. 1 ISWORKING ON A PRCBLEM TI-%A"- I S C RI TI CA L I N DDEVE l OPING GO NTRIES. TF.IAT PROBLEM I S F11ELWOOD SHORTPGES.

H A I T I AND PAKISTAN--SMOKELESS COAL BHIQLIETTES.IMPLEMENTATION OF OWE PQTENTAL S a u T r m IS OCCURRING IN

TRADITIONAL ENERGY SOURCES@E A SIGNIFICANT FRACTIONOFND IN DEVELOPING COUNTRIES. THESE TRADITIONAL

INCREASINGLY SCARCE BECAUSEOF THE CLEARING OF LAND FORff i R I ULTUREI WAhiCQpL PRODUCTION D EXCESSIVE TIlirE1ERWARVESTING.

SOURCES, ESPECIALLY FIREWOCO AND CHARCOEV., WAVE BECOME

W E R E ARE MREE PQLICY OPTIONSFOR MITIGATINGME FUELWOOD

BRIQUETTES. THIS PROSPECTUS ADDRESSES THE LASTOF THESEOPTIONS -- USE OF SWKELESS COPL BRIQUETTES.C R I S I S CONSERVATIQN> REFORESTATIONI AND SUBS TITUT INGCOAL

RESWRCE AND MARKET NDI TI ONS ARE EXCELLENT I NSOMEDEVELOPING COUNTRIES FOR THE SUBSTITUTION OF COALBRIQUETTES FOR F ~ ~ ~ ~ O ~ *H POTENTIAL FOR SUBSTITUTION I S

ON RELATIVEFUEL PRICE.GREATEST I N UWW AREAS, WHEkE F U R CHOICEI S LAFGELYBASED

COAL BRIQUETTING PROVIDESAN EXCELLENT OPPORTUNITYFOR THEPRIVATE SECTOR TQ CONTRIBUTE TO SOLVINGA DEVELOPING WORLDPRCBLEM. ST ASPECTS OF RESGLlRCE SUPPLYPRQ5UCTIONCAN BE HANDLEDBY PRIVATE ENTREPRENEURS.

F U ~ ~ ~ ~ ~EFICIENCIES ANDCOPL W A I L I L I T Y IN A. I. 13ASS S ED COU NTR IES

I F N O C O R R E C T I V EACTIONS A9E TAKEN, AN ESTIMATED THREEB I L L I O NPEOPLE WILL LIVE I N PCXlTE WOODSCARCITY ANDD E F I C I TREGIONS BY THE YEAR 2000, PL ST ALL A. 1.5. SUPFQRTED

D E F I C i T FLSECWOQD SITUATIONS.COUNTRIES PRE EXPERIENCIMGIOR W I L L EXPERIENCE, ACUTE OR

TELY 50 Q E V ~ ~ ~ ~ GBUNTRIES REPORT GE

RESERVES. WERE ARE 1-8 A . I . D . COUNTRIES THAT ESPECIALLYAPPEAR TO BE CAND ATES FOR I ~ T ~ ~ Q U C I ~ ~OPS, BRIQUETTES--COAL RESQURCES. ENTY A . ~ , D . COUNTRIES REPORT COAL

EIGHT I N AFRICA, S EN I N A S I A , AND TWO I N L AT IN AMERICA.

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111"

I V.

KELESS COAL BRIQUETTESAS A POSSIBLE SUBSTITUTE FORFUELWOOD

SQME ON BRIQUETTING TECHNIQUES MAKECOAL AN ATTRACTIVEFUELWOOD SUBSTITUTE BY CONVERTINGI T INTO A SMOKELESS,COMPACT, STABLE, AND INEXPENSIVE FORMOF FUEL.

COK BRIUUETTING HAS BEE3 SH N WORLD-WIDE TO BE ATECHNOLOGY CAPABLE OF USING COAL OF VARIOUS GRADES ANDPRODUCING BRIQUETTES WITH DIFFERENT CHARACTERISTICS FORDIFFERENT USES.

OR UNTREATED BRIQUETTED COAL PRODUCES EMISSIONSTHAT CAN HAVE SERIOUS HEPLTH EFFECTS.

HWEVER, ON CARBONIZATION SIGNIFICANTLY REDUCESTHEADVERSE HEALTH EFFECTS FROM BURNING COAL OR COALBRIQUETTES. THE RESULT OF CAFa88NIZATION I S A "SOFT

EMISSIONS FROM SMOKELESS COAL ARE PREDICTED TO BE NO WORSEMCVJ 'THOSE EMANATING FRON THE CURRENT FUELS OF CI-lARCOKANDFI EWOOD.

SMOKELESS COKE. WH ILE TESTING I S CURRENTLY I N PRGRES S,

THE COSTS ASSQCIATED WITH BRIQUE TTING AND CARBONIZING C O NINDICATE A SELLING PRICE FOR SMOKELESSCOAL BRIQUETTES I NSOMEUWAN AREAS THAT MAKETHEN COMPETITIVE WITH FUELWOODAND WARCONL.

INTERNATIONAL EXPERIENCES WITHCOAL BRIQUETTING: INDIAANDKOREA

COAL CARBONIZATION HAS BEEN PRACTICED EXTENSIVELY I N I NDI A.

THE IN DI AN EXPERIENCE I S INSTRUCTIVE BECAUSEA WIDE RANGEOF TECHNOLOGIES ANDCO TYPES HAS BEEN UTI LIZ ED. I N D I AHAS DEWSITS OF BITUMINOUS# SUBBITUMINCUStAND L I G N I T EC O L S a AND ALL HAVE BEEN USED FOR CARBONIZATION.TECHNOLOGIES RANGE FROM ONE-PERSON, "V ILLAGECOPe P I L E S " TOADV AFlCED TECHNOL CGY CARBON IZATIO Nhz.ANTS.

I N D I A HAS DEVELOPED A SMOKELESS COOKING STOVE WHICH CAN USECOAL AS A FUEL SOURCE WITH NO SIGNIFICANT ADVERSE

H E K M EFFECTS.

KOREANS HAVE USED R ANPH RAC ITE COAL BRIQUETTESEXTEN SIV ELY FOR COOKING AND HEATING. THE KOREANS STARTED

20 LARGE BRIQUETTING RA N TS I NME CQUNTRY.CQPL B K IQ U ET TI N G I N1930s A N D THERE ARE NW APPROXIMATUY

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V. TBE KITENTI& FORCOAL BRIQUETTE SUBSTITU TION I N A.I. D.ASSISTED COUNTRIES

. SIG NIF ICA NT OPPORTUNITIES EX IS T TO MI TIG ATE THE FUELWOODC R I S l S AROUND THE WORLD. A PRELIMINARY E ~ ~ I N A ~ ~F THE

SEVENTEEN A I . COUNTRIES XIENTIFIED AS HAVING BOTHCOPLRESERVES AND A FUELWOODSHORf&E INDICATESTHAT FOUR APPEAR

AND PAK IST AN. ANOTHER EI GH T COUNTRIES APPEARTO HAVE ATO HAVE AN IMMEDIA TE POTENTIAL : BOTSWANA, HA I T I 8 IND IA ,

NEAR-TERM 3 TO 5 YEARS) PO TE NT IA L: IND ONESIA, MOROCCO,NIGER$ PERU3 PHIL IPPI NES, T W A N I A , THAILAND, SWAZILAND,ZAIR E8 ZAM3IA p AND ZIM3ABWE.

V I . STRATEGIES FOR REALIZ ING M E POTENTIAL FORCOFL BRIQUETTINGI N A I. D. ASS IST ED COUNTRIES

. IblPLEMENTING SMOKELESSCOAL BRIQUETVIN G I N A.I. D ASSISTEDCOUNTRIES WI LL BE BASED ON EXPERIENCES GAIN EDBY A. I.D. I N

H A I T I AN5 PAKISTAN.

. F I V E STEPS ARE NECESSARY TO SUCCESSFULLY IMP LEM ENTSMOKELESS COAL BR IQU ETT ING AND MARKETING I N A.1.0.OOUNTRIES. THESE INCL UDE A RESOURCE EVALUATION, A MARKETASSESSMENT, A TECHNOLOGY ASSESSMENT, A STUDY OF GOVERNMENTPOLICY AND PLANNING#AND PACKAGXNGTHE I D E A FOR THE PRIVATESECTOR TO IMFLEMENT.

. USAID/WASHINGTON, OFFICEOF ENERGY8 WILL PROVIDE TECHNICALASSISTANCE TO MI SSI ONS I N IMPLEMENTING THE SMOKELESSCOALBRIQUETTE TECHNCLOGY.

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I.

A. A.I.D. IS ~~R~~~~ ON A F5RCBLEF MAT IS ITICAL IN DOZENS OF5EVEbOPING COUNTRIES. THAT PRCX3.LEW I FUELWOOD SHQRTPC;ES.~ ~ E ~ N ~ A ~ I O ~F ONE POTE TIAL s a m m IS OCCURRING ENHAITI AND ~ A ~ I S T A N - - S ~ ~ ~ ~SS IXAL BRIQUETTES,

Fuelwood shor tages and po t en t i a l shortages a r e pervasqve ~ ~ r ~h edeve lop ing world, a s the f o l l o w i n g s e c t i o n s document . One proposeds o l u t f o n i s t h e s u b s t i t u t i o n of a mokeless, coal -based cookTng f u e lwhere c oa l r e s o u r c e s a r e a v a i l a b l e . T h e i d e a i s even m o v l n g t owardsr e a l i z a t i o n l n t w o developing c o u n t r i e s a H a i t and Pak i s t an . Phlsprospectus descri bes t h e probl m oi' fuel wood s h o r t a g e , t h e mokel csscoal a1 t e rna t ive , and A. I. D. s a c t i v e r o ' t e i n b r i n g i n g t h e a l t e r n a t i v es o l u ti o n t o f r u i t i o n .

B. TRA51TIONAL ENERGY S FXES AliE ASIGNIFICA T

FRACTION OFENERGY D E M A N DI DEVELOPING COUNTRIES. IHESE TRaDITIONPk

INCREASINGLY S C A R E BECAUSE OF THE CLEARING OF LFGRIQXILTURE CHARCB PRODUCTIONI AN5 EXCESSIVEHMV ESTINGn

SOURESr ESPECI L Y FIRBJOOD AND CHARCOALI HAVE BECOME

T h e t r a d i t i o n a l energy sources , f i rewood, charcoa l$ animal d u n g t anda g r i c u l t u r a l r e s i d u e s a c c o u n t f o r n e a r l y a l l o f t h e rural householde n e rg y demand, a n d a s i g n i f i c a n t p o r t i o n of t h e e n e rg y demand among t h eurban poor, I n Afr i ca , i t has been e s t i m a t e d t h a t traditional faielsa c c o u n t f o r a b o u t 65 percent o f t o t a l per c a p i t a e n e rg y consumption; i nAsia t h e y account f o r nea r ly 3 0 percent; and i n L a t i n Americat r a d i tl nal energy c m p r ises a p p r a x imatel y 25 percent o f t o t a l perc a p l t a energy c o n s ~ ~ ~ p t i ~ ns e e Figure l . l ~ ~ I . 4 1 In many of thesec o u n t r i8 s t h e pe rcen t age of t r a d i t i o n a l e n e rg y cansumpti on i s expe&edt o i n c r e a s e c o nc o m it an t ly w i t h expanding popula t l o n s r p a r t i c u l a r l y i nurban a r ea s . As s t a t e d I n t h e A. 1 . B Pol icy Paper on E n e rg y p W s s u r l n g

u a t e domest ic e n e r g y s u p p l i e s f a r cooking p r e s e n t s a s i g n i f f c a n tchal nge i n t h e y e a r s aheado 9 E221

1

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2

64

Africu

25.4

Latin,Am

29.7

Asia

8.1

1.3 -Developed World

Fig . 1. P e rc e nt ag e o f t r a d i t i o n a l f u e l s i nt o t a l energy consumption

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3

T h e pr i i nc ipa l c ause s of d e f o r e s t a t d o n i n d e v e l o p i n g c o u n t r j e s usual 7yc a n b e a t t r i b u t e d t o three f a c t o r s : (1) t h e c l e a r i n g o f l and f o rsubsistence and p l a n t a t i a n a g r i c u l t u r e ; (2) t h e produc t ion o f charcoa lt o meet r a p i d l y r i s i n g dem ands by urban popu la t i ons ; and ( 3 ) e x c e s s l v ea n d i n e f f i c i e n t commerci a1 timber h a r v s s t ing f o r domestic a n d exportc o n s t r u c t i o n and m a n u f ac t ur i ng I n d J s t r i e s . T h e demand f o r fisewoood byr u r a l p o p u l a t i o n s i s g e n e r a l l y n o t t h e m a J w c a u s e of d e f o r e s t a t i o n .Rural firewood demand i s o f t e n c h a r a c t e r i z e d by t h e c u t t f n g o f branchesfrom l i v e t rees, s h r u b s r and b u s h e s I and gathering of seed wood and doesno t a lways require t h e d e s t r u c t i o n of w h ol e t rees. I n H a i t S r forexampler s t u d i e s i n d i c a t e t h a t h o u s e h o ld caoki ng i s done most o f t e n w i t hscavenged deadwood, O n t he o t he r hand, m a l1 i n d u s t r ia1 and cmmerc ialfuelwood consumer^ i n H a i t i do cut 1 i v e t rees.

C THE ENVIRONMENTALPND S0CIOEC:ONQMIC IMPACTS OF DEFORESTATIONAREBOTH P E RVA S I V E M D CQIU(PLEY.

T h e r a t e of d e f o r e s t a t i o n h a s b e e n e s t t m a t e d a t a b o u t 7 . 3 rnilllanh e c t a r e s per y e a r f o r t r o p i c a l f o r a s t s and ab ou t4 m i l l i o n h e c t a r e s pery e a r i n semi-ar id regions.C81 N e w wood s u p p l ies f r m r e f o r e s t a t i o nprograms have had 1 i t t l e real impact t o date . T h e Food a n d A g r i c u l t u r eO r g a n i z a t i o n (FA01 e s t i m a t e s t h a t f o r every ten h e c t a r e s o f cl e a r e dfo re s t t h e r e i s o n l y one hectar.9 reg1 anted , C 63 The environmentalimpacts o f l an d c l e a r a n c e a r e cu m u l a ti v ea n d u s u a l l y b e g i n w i t h reducedi n f i l t r a t i o n r a t e s l increased w a t e r runof fl and i c rea sed so i1t empe ra tu re s . Water and w i n d e r o s i o n q u i c k l y se t s I n motion an a l m o s tI r r eve r s ib l e process o f soil deg rada t i on . I n West A f r i c a p s o i l l o s sfrom c u l t i v a t e d f i e l d s i s a s much a s 6300 times g r e a t e r t h a n t h a t f o rf o r e s t l a n d ; i n S e n eg a l8 s o i l l o s s fro m gr ou na nu t c u l t i v a t i o ni s n e a r l y750 times g r e a t e r t h a n t h a t f o r d r y f or es t. LJ .5 1 D e f o r e s t a t i o n a l s oreduces up1and water s to rage and I n t e n s i f i e s s l l t a t i on o f r e se rvo i rs a n dr ivers r e s u l t f n g i n h ighe r fncidences o f seasona l f looding , whrch l e a d st o a d d it io n a l s o i l e ros ion . Mareoverl t h e removal af b u s h v e g e t a t i o n i na r i d a n d s e m i - a ri d regions c o n t r i b u t e s t o t h e o n s l a u g h t ofdeser t i i c a t i on. I n some areas8 p a r t i c u l a r ly t h e I n d i an subcon tl nent,t h e ru r a l popu la t i on has t u r n e d t o t h e b u r n i n g of d u n g a n d a g r i c u l t u r a lresidues, T h e use o f these fuels deprives t h e l and o f c r u c i a l l y n e e d e dn u t r i e n t s and s o i l c o n d i t t o n e r s . The e n d r e su l t i s a dramat ic d e c l i n ei n a g r ic u l t u r a l p r o d u c t - i v i t y - - t h e backbone of a11 d e v e l o p i n g c o u n t r i e s .

R e d u c e d a gr dc ul t u r a l p r o d u c t i v i t yse t s i motion a cycl e of unempl oymen tand underemployment t h a t serves on ly t o a c c e l e r a t e t h e mlgral l an ofr u r a l p o p u l a ti o n s t o o v er ly crwdad urban centers. T h e s c a r c l t y off u e l wood al so means t h a t wood ga the re r s r p r imar i l y wmen and chS1 dt-en,m u s t now s p e n d consdderab ly more time i n sea rch o f feaelwaod, Forexamplel i n up3 a n d a r e a s o f Nepal household s a r e s p e n d f n g f rworkdays per y e a r on f i rewood col~lec- t ian, and u p t o 300 workdays pesy e a r ln some p a r t s o f Tanzania hay& b e e n abserved.Cl 1 T h e scarc i ty o fwood hasr i n most u rb an a r e a s s r e s u l t e d i n t he c r e a t i o n o f markets f o rfuelwood. These marke t s have placed a heavy b u r d e n on t h e cashr e s o u r c e s o f t h e rura l and poor urban popula t ions . I n t h e c a p i t a l of

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4

Burund i, househol ds a r e spending as much as 3 0 p e r c e n t o f t h e i r incomef o r f u e l . As p ri c es r i s e f o r woad and charcoa l8 popu la t i ons beg in t oc u t back on thei r consumption, and i n some cases a r e reduced t o cookingon ly once per day. I n acute sc ar cl ty regions.. fuelwood disappearsa l t o g e t h e r f r m th e urban markets.CZ1 The fuelwood c r i s i s can become sosevere t h a t I n s m e A f ri c an towns t h e c o s t o f fuelwood exceeds th e cost sof commercial fuels such a5 kerosene and e l ec t r i c i t y.

D. WERE M E THREE POLICY OPPIQNS FOR MITIGATING WE FUELWOOD

BRIQUETTES. THIS FWSPECTUS ADDRESSES THE LAST OF THESEOPTIONS -- USE OF SMOKELESS COAL BRIQUETTES.CRISIS: CONSERVATION, REFORESTATION, AND SUBSTITUTING COAL

There ar e th re e energy po l i cy opt ion s t h a t have been advanced f o rm i t i g a t i n g the ons laught o f d e fo re s t a t i on and th e in ev i t ab le andp e rn i c i ous e f f e c t s o f fuel wood scarci ti es a1 1 of which are consi st en tw i t h A . I . D . 1 s P o l i c y Paper on Energy. They in cl ud e: (1) conservat ionthrough improvements i n fu el wood end-use eff ic iencies , speci f i c a l y t h ed i f f u s i on o f fue l - e f f i c i ent cooki ng s toves and re du ct i on i conv ersi on1 asses i charcoal product ion w i t h use of earthen, t ran spa r tab l e metaland masonry kilns; (21 i nc reas ing the supp ly o f fuelwood throughr e f s r e s t a t i an, ag ro fo re st ry , and improved f o r e s t management; and ( 3 )s u k s t i t u t i ng ot he r sources o f energy fo r f ue l wood. Thi s prospectusconcentrates on opt1 on ( 3 ) .

E. RESWRCE AND MARKET CONDITIONS ARE EXCELLENT I N SOMEDEVELOPING COUNTRIES FOR THE SUBSTITUTION OF COAL BRIQUETTESFOR FURWOOD. ME POTENTIAL FOR SUBSTITUTION I S GREATEST IN

FUEL PRICE.AN AREAS# WHERE FUEL C H O I C E IS LARGELY BASED ON RELATIVE

As t h e r e a l costs of us ing fue lwood inc rease t th e su bs t i t u t io n o f o t h e rf u e l s f o r firmcmd and charcoal w i l l become more fa vo ra bl e. Because o ffue lwood sca rc i t i e s , t h e cos t s a f t r a d i t i a n a l f u e l s are, i n some1 a c a t i oris, hi gh er tha n cornmerci a1 su bs ti tu te s. C13 I n o t h e r 1 ocationsrsuch a s P e r u and Indones ia, cornmerci a1 s u b s t i t u t e s 1 i k e kerosene a r eh e a v i l y s u b si d i ze d t o h e l p t h e poo r o r -to reduce deforestation.Cl8, 191Yet, desp i t e h igher fuelwood p r i ce s su bs t i tu t io n o f t e n does no t t akep? ace untll fuelwood s u p p l i e s h a v e b e e n v i r t u a l l y d e p l e t e d for as mucha s 100 k i l o m e t e r s or more surrounding urban areas.Cl1 I n rural areas,

high d i s t r i b u t i an costs do no t fa vo r cornmerci a1 f ue l su bs ti tu te s, andb e s i d e s the p so pl s i n t h e s e areas of ten 1 v e outside the commercialectan~my which makes th e pene tra t lon o f cmmerci a1 su bs t i tu te s l e ss1 ike l y. S t i l s 8 cmrnerci a1 su bs ti tu te s do have po te nt i a1 where th e co st s

ood and c ha rc oa l have r i s e n s u f f j c i e n t l y 8 p a r t i c u l a r l y i nconcentrated urban markets.

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5

F. COAL BRIQUETTING PROVIDES Ah1 EXCELLENT OPPORTUNITY FOR THEPRIVATE SECTOR TO ONTRIBUTE TO S O LV I N G A DEVELOPING WON0P R BLEM. M3ST ASPECTS OF RESOURCE SUPPLY AND PRODUCTPRODUCTION CAN BE HANDLED BY PRIVATE ENTREPRENEURS.

On t h e su pp ly si de , v i r t u a l l y a l l a s pe ct s o f c oa l b r i q u e t t i n gmanufactu re and d i s t r i b u t i o n can be c o n t r o l l e d by t h e p r f v a t e s e ct or.Under agreement wi t h th e government, which most o f t e n h a s ownershipr i g h t s t o coal i n deve loping coun t r i e s , p r iv a t e en te rp r i s e s can mIne th eneeded coal. Whether t h i s means expandi ng exi s t i ng min i ng ope ra t i ons o rest abl i sh i n g new ones, s i g n i f i c a n t new employment i s p o s s i b l e . P r i v a t emanufacturers can b ri qu e t t e and carboniz e t h e coal--especi a1 ly i f ani n t e r m e di a t e l e v e l of technology wl th reasonable capi ta l cos ts i s used.I n some coun tri es, t he needed machfnery can be manufactured l o ca l ly , a sis t h e case i n I n d ia . F i n a l l y, t h e d i s t r i b u t i o n ne two rk can e a s i l yc o n s i s t o f p ri v at e deal ers. Indeed, i n many co un tr ie s where fu el wood orcharcoal i s traded as a commercial i t e m i n u rban areas., t h e p o te n t i a l

p r i v a t e d i s t r i b u t o r s a l r e a dy e x i s t i n t h e f or m o f wood and c ha rc oa ldeal ers.

T h e s u b s t i t u t i o n o f coal b r iqu e t t e s f o r fuelwood , i nc lud ing t h e r easonsf o r it, a nontechnical df scus s lon o f t h e te ch no lo gi es involved, and someposs i b l e market s t r a t eg i e s r i s t he focus o f t he r ema inde r o f thlsProspectus.

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A. I F NO CORRECTIVE A C T I O N S ARE TAKEN, AN ESTIMATED THREEB I L L I O NPEOPLE WILL LIVEI N ACUTE WOOD SCA CITY AND DEFICITREGIONSBY THE YEAR 2000. AL ST ALL A.I.D. SUPFSORTED

REFICIT FUELWOOD SITUATIQNS.COUNTRIES ARE EXPERIENCINGI OR WILL EXPERIENCE, ACUTE OR

The t r a d i t i o n a l energy c r i s i s i n de ve lo pi ng c o u n t r i e s i s i n p a r t aconsequence of u t i l i z s n g wood resour ces over many ye ar s a t a r a t e muchfas t e r t han they can be renewed na tu ra l ly o r by a ff o re s t a t io n . I naccordance with a recommendation by a Uni te d Nat ion s Technical Panel onFuelwoo& th e FAO i d e n t i f i e d regi ons wdth fualw od shor tagesP theseve r i ty o f t he shor t ages i n these reg ions, and th e a ff ec t ed popu la t ion

invol ved. The FAQ concluded t h a t some 96 m i l1 io n ru ra l people and 16m i l l i o n urban peop le now l i v e i n acu te wood sca r c l t y s i tu a t io ns ( seeF i g u r e 2) .C111 These a c x k wood s c a r c i t y r e g i o n s a r e d e f i ne d a sne ga ti ve woad energy bal ance areas where e x i s t i n g resour ces have beendepl etecl through ov er eu tt i ng t o th e po i n t where popul a t i ons canno tobtal n suf f I c i en t f u e l wood.

Acute fue lwsod s c a r c i t y areas i nc lude the a r i d and semi -ar id r eg ionssouth of t h e Saharal East and Southeast Af ri ca , t h e Himalayas andmountainous regio ns of South Asia, th e Andean Plateau, t he ar i d areas i nwestern South Americap and i n many of t he densely populated urban areasi n L a t l n America. F u r t h e r p t h e FA0 e s t im a t e s t h a t ove r one b i l l i o nr u r a l people and 230 m l l l i a n u rb an p eo pl e 1 i v e i n wood d e f i c i t

s i t u a t i o n s ( s e e F i g u r e 2 ) . Wood d e f i c i t a re as a r e d e f i ne d a s re g i on swhere popu la t i ons ar e s t i l l abl e t o meet minimu fue l wood needs, butonly by harv es t i ng i n excess of th e sustadn l e fuelwood supply.D e f i c i t a re as i n c l u d e t h e A fri c a n savannah regions, t h e Indo-GangeticP l a i n s i n s ou th er n A s i a r th e p la in s and is l and s i n Southeas t Asia, andt h e populated semi- arid areas and Andean zones of South h e r f c a . TheFA 0 study goes on t o p r o j e c t t h a t -if no Immedia t e co r rec t lve ac t lons a retaken3 t h e n s a n e t h r e e b i l l i o n p e o p l e w i l l l i v e i n a cute wood s c a r c i t yand d e f i c i t r e g i o n s by t h e y ea r 2000. Mor err th e pr ic es o f f i rewoodand charcoal w i l l con t inue t o inc rease h th e sca r c i t y and on lyexa cer bat e an a1 ready i n t o l e r ab l e s i t u a t i o n .

Cur ren t fue l wood d @ f c i enci OS i n A. I D. assi s ted c o u n t r i e s a r e

summarized i n Table h . This tabula t ion shows t h a t n e a r l y a l l of t h eA. I. D. suppor t ed cou n t r i e s a re now exper i enc ing acu te o r d e f i c i tfue lwood s c a r c i t i e s o r w i l l have fuelwood problems by t h e y e a r 2000.The pervasiveness and s e v e r i t y of t he probl underscores t h e urgencyw1t.h which i t should be handled.

6

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7

Ru ra I popu u t io nsYear

198E

R 00ct;d.c

Africa Ma/Pacific

Near East/No. Africa Latin Ametica

Source: FAC-rban populat ions

T Year

El 19802000

I I237

Africa ksia/Pacific

Near East/No. Africa Latin Amerlca

ource: FA0

fu elw oo d s c a r c i t i e s and f ue lw oa d d e f i c i t si n1980 a n 3 2000

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8

Table 1. FAQ q u a l i t a t i v e fuelwood d e f i c i e n ci e s i n A.1.Da s s i s t e d c o u n t r l es

Go un t y Def i c i ency

AFRICABurundiCameroon (Northern 8 Western)Cape YerdeChad (North)

Dj i o u t iGambiaGhanaGui nea (No rt her n)

(Southern)Guinea-Bissau

Kenya (Northern)

LesothoL i b e s - i aMa daga scarMal aw iMal i ( Northern)

(Southern)Mauri an1 aNiger (Southwest)

ana (Nestern)

(Southern 8 Centra l 1

(Coastal 8 C e n t r a l )

(Southern 8 Eastern)(Northern)

Senegal (C en tr al West a R i v e r P l a i n )Sierra LeoneS m a l i aSudan (Northern)

Sw az i l andTanzan ia (Northern)

(Southern)Togs North ern 1

(Southern)UgandaUpper Vol t a (Centra l 1

Z a i r e (Northern)(Southern)Zarnbi a (Eastern)Z irnbabwe

(Centra l 1

(Eastern & Western)

NORTH AFRICA 8 NEAR EASTP t

JordanL@Sa onMarocco

AcuteAcuteDef i c i tS a t 1 sf actoryAcuteProspec t iveAcuteD e f i c i tP rospec t iveD e f i c i tProspect i eS a t i s f a c t o r yAcuteD e f i c i tAcu teSa ti s f a c t oryD e f i c i tDef i c i tAcuteProspec t iveAcuteDef i c i :ProspectdveAcuteAc u teD e f i c i tProspect iveAcuteAcuteProspect i eAcuteDef i c i tP r os pect i eProspect i eD e f i c i tB e f i c i tDef . ici tProspec t iveProspec t iveDef I c i tD e f i c i tP rospec t ive

D e f l c i tDef -I i tDef c i tD e f i c i t

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9

Table 1. (Continued)

OmanTuni s i aYemen

LATIN AMERICABarbadosB el i z eBo1 i v i a (Western)Costa RicaDominican Republ i cEcuador (Central 1E l SalvadorGuatemal a (S ou th ern )Guy anaH a i t iHondurasJamaicaNi a raguaPa nam aParaguay (Eastern)Peru (Coastal 1

(Centra l 1

A S I A & FAR EASTBang1 adeshBurma (Southern)F i j iIndia (Western Himalayas)

Indonesia

(Java)

Nepal ( H i 11 s )

Pak i s t anPh i l i pp ines (Luzon)

S r i LankaThai1 and (Coast al 1

(Centra l 1

(Remainder)

(Sumatra, Sul awesis Ti ma r)

( F o o t h i l l s )

(Centra l 1

S a t i s f a c to r yD e f i c i tD e f i c i t

S a t i s f a c t o r yS a t i sf actoryAcuteSa t1 s f ac to ryD e f i c i tD e f i c i tAcuteD e f i c i tS a t i s f actoryAcuteS a t i s f actoryAcuteS a t i s f actoryS a t i s f a c t o r yProspec t iveAcuteD s f c i t

Def id tProspec t iveS a t i s f ac to ryAcuteD e f i c i tD e f i c i tProspect i eAcuteDof c i tD e f i c i tP rospec t iveDef c4 tDef f c i tP r os pec t i eD e f i c i t

Acu te sca rc i ty = Fuelwood resources have been so re du ce d t h a t t h epopul a t io n i s no 1 onger ab1 e t o ob ta in a minimal supply.

D e f i c i t = Present fuel wood resources are bel ow requi rments, ob1 i g i ngt h e popul a t i on t o o ve re xp l o i t.

P r o s p e c t i v e d e f i c i t = Present fuelwoDd resources are higher thanrequi remen t s, bu t s i t u a t io n evo lv ing toward a c r i s i s i n 2000.

Sat1 sf ac to ry = Resources cons ider abl y exceed pres ent and for eseeabl eneeds.

Source: M. R. de Montalembert and J . Clement, f m w w.Devel op i w ood and Agr i c J l t u r e Organ iza t ion o f t h e Uni tedNations, Rme, 1983.

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3. APPROXIMATELY50 DEVELOPINGCOUNTRIES REPORT GEGLOGICAL COALRESOURCES. TWENTY-QNEA. I . COUNTRIES REPQRT COAL RESERVES.WERE ARE 17 A.I.D. COUNTRIES THAT ESPECIALLY APPEAR TO BECANDIDATES FOR INTRODUCING COAL BRIQUETTES -- EIGHT I NAFRICA9 SEVEN I N A S I A ? AND WQ I N LATIN AMERICA.

E x p l o r a t i o n o f coal i n developing co un tr ie s has been very l i m i t ed t odate, and on ly began i n earn est sfnce th e second major 011 p ri c ei ncr ea se i n t h e l a t e 1970s. Desp it e th e l ac k o f exp lo ra t ion , about 50developing c ou nt ri es now re po rt geol ogi cal coal resources and 19 havete ch ni ca l l y and econ ica l ly -re cov era bl e reserves . C253 The d i s t r i b u t i o nand size o f proven coal reserv es a r e r hwe ver , skewed and a r econcent ra ted i n a few devel oping coun tri es. To be sure, coal resourcesa re broad ly d i s t r i bu te d th roughou t th e wor ld , and th e r epor t edoccurrences of coal i n the deve loping coun t r i e s a r e wide ly r ecogn ized t obe vast1 y understated.

The a v a i l a b i l i t y and c u r r e n t p r od u ct i on a f c oa l i n A. I.D. ass i s t edc o u n t ri e s i s r ep o rt e d i n Tab le 2, The da ta ind ica t e th a t 21 A.I.D.co un tr ie s have coal reserves. These coal re serve data ar e veryencou rag i ng, bu t devel opment of coal reserves has hig h f ront-end costsand lo ng le ad t imes . Consequently, th e cou nt r i es t h a t have ongoingp r o d u c t i o n or t h e p o t e n t i a l f o r immediate development are 1 k e l y t o bet h e b es t ca nd id at es f o r c oa l b r i q u e t t i ng.

The A. I . a s s i s t e d c o u n t r i e s t h a t a ppear t o h ave t h e r e q u i s i t e s f o rcoal br iq ue t t in g techno1 ogy ( i. . , fu el wood de fi ci en ci es anda v a i l a b i l i t y of coa l ) a re :

B o t s ana Bang1 adesh H a i t iMorocco Burma PeruN i g e r I n d i aSwaz 11 and In do ne si 9Tanzani a P a k i s t a nZad r e Ph i l i pp inesbambi a T h a i1 andZ i mba bw e

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1 1

Table 2. Coal av a i l a b i l i ty ln A . I . D . ass i s t ed coun t r i e s w i t hf u e l wood def i c i enci es

ResourcesCountry ( MMtonnes) * Re e r ve s( MMtonnesIY ProductionMMton nes 1*

AFRICABotswana (1)Burundi (3 ) (1)Cameroon ( 3 )ChadD j b o u t iGambSa (1)GhanaGui nea

Kenya (1 )Lesotho (1)Madaga sca r ( 2 1Malawi ( 3 )Ma ilclaur i an i aNiger (1 )Rwanda (1)Senegal (1)Si er ra Leone ( 3 )Somalia 3 )Sudan (1)Swaziland ( 3 )

Tanzania(1)

TogoUganda (1)Upper Vol t aZ a i r e 3 )Zambia (1)Zimbabwe (1)

100,000n. a.500--

Egypt 3 )JordanLebanonMorocoo (1)OmanTunis ia ( 3 )Yemen

--n. a.

I

n. a.n. a.9214

--n. a.n. a.n. a.n. a.n. a.n. a.

5 000

1,900In. a.7 3

22829,000

--

NORM AFRICA 8 NEAR EAST

LATIN AMERICA

80--I96

n. a.e

-..

Bo1 i v la (1) 2) n. a.Dominican Republ i c --Eucador ( 3 ) 22

17,000n. a.n. a.----n. a.----n. a.n. a.n. a.n. a.----

1 2n. a.n. a.n. a.n. a.n. a.

3 04n. a.

n. a.5 8

2,200

1,620

----

n. a.

n. a.--

0.415n. a.n. a.----n. a.

2

--n. a.n. a.

n. a.L

n. a.n. a.n. a.n. a.n. a,n. a.

0.1000.010

n. a.

0.1080.610

3.20

--*...

n. a----0.750

n. a.----

n. a.

n. a.--

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1 2

E l S a l v a d o r (2 )Guatemala (21H a i t i ( 5 1Jama ica ( 2 )Paraguay ( 1)Peru (1)

A S I A 8, FAR EAST

Bang1 adesh 1)(4)

Burma ( 3 )( 4 )

I n d i a ( 3 )( 4 )

Indonesia 1 )( 4 )

Nepal (11 4 )P a k i s t a n ( 6 )

( 3 )(44

P h i l i p p i n e s ( 3 )( 4 )

Sari Lanka ( 1 ) 4 )Thai land ( 3 )

( 4 )

n. a.n. a.

n. a.n. a e

9 7

-...

n. a.1,056

24.5

56 17 9982,90010,000

6 74n. a.n. a.

113759567

27 0n. a.

7 82 46

n. a.n. a.4 . 2 .n. a.n. a.

126

n. a.n. a.n. a.n. a.

3 3 , 7 00n. a.3 O i l

n. a.n. a.,50 8

n. a.

n. a.n. a.n. a.n. a.

n. a.

n. a.

n. a.n. a.

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A. SONE COAL BRIQUETTING TECHNIQUES MAKE COAL AN ATTRACTIVEFUEL-MOOD SUBSTITUTE BY CONVERTING I T INTO A SMOKELESS,COMPACT, STABLE, AND INEXPENSIVE FORM OF RIEL.

Coal i s o f t en desc ribed a s a ' t d i r t y f l f u e l r e m i t t i n g smoke t h a t i soffens ive and c o nt a i n i ng cons t i tu en t s th a t a re ha rmful t o human heal th .Moreover, sune raw coa ls ar e h i gh ly f r i a b l e and ar e no t ea s i ly handledo r d i s t r i b u t e d i n t h e i r n a t u r a l s ta t e . However, by b r i q u e t t i n g andcar bon iz i ng when necessary, coal can be put i n t o a re l a t i v e l y c lean,compact, and st a bl e form f o r use. The r e s u l t i n g f u e l i s a l s o n o texpensive.

B. COAL B R I Q U E l T I N GHAS BEEN SHCWN WORLD-WIDETO BE A TECHNCLGYCAPABLE OF USING COPL OF VARIOUS GkADES AND PRODUCINGBRIQUETTES WIM DIFFERENT CHARACTERISTICS FOR DIFFERENT USES.

Coal b r l q u e t t i n g i s a process z~y which raw coal i s compacted i n t oun i orm, usual 1y hard, and 1mpac:t- re s1 s t a n t aggl ome rat i ons, maki ng i tm o r e s u i t a b l e f o r use? t ran spor t , and/or f ur t h er process ing. I t hasbeen pr ac t ic ed f o r many years, a t l e a s t s i nc e t h e be gi nn in g o f t h i scentury.Cl21 I t i s a l so a technology t h a t ha5 been researchedworldwide, i n such widely dlspersed plac es a s Germany, USSR, Austral ia,Korea, India, and t h e Un it ed States. The wide ex te nt of th e researchhas severa l reasons . Fi rs t , a l l coa ls ar e not a1 ike, and of te n researchhas been aimed a t developing aF" improved b r fq ue t t in g p rocess fo r apa r t ic u la r coal . Second, br iq ue t t in g can be done wi th or wi t hou t ana d d i t i v e ( b i n d e r) t o h e l p i n a g g l m e r a t i n g and g i v i n g c oh es iv e s t r e n g t ht o t he br iqu et t e . Much research has gone i n t o s u i t a b l e binders, as w e l la s i n t o processes by which br iq ue t t in g can be performed wi t hou t abinder. Third, same research has been d i r e c t e d a t i m pr o vi n g t h ep r o p e r t i e s of t h e b r i qu e t t es , such as m a i n t a i n i n g i g n i t a b i l t y w h i l ek ee pi ng v o l a t i l e ma t t e r low as we l l as reducing smoke and su l fu rcmissians upon burning.

I t s ho ul d be emphasized t h a t t h e r e i s n o t j u s t a s i n g l e b r i q u e t t i n gtechnologyr nor we n a se t of two or t h r ee o r a h a l f dozen we l l -de f inedtechno log i es f o r coal b r iq ue t t in g . Rathe r, a s e t o f pa ramete rs f o r t h eb r i q u e t t i ng o f coal such as tc-mperature, pressure, pres sin g time,b i n d e r r t y p e o f c o a l p t y p e of press, pre tr eal nen t, etc., can be va ri edt o p roduce un ique b r iq ue t t in g p rocesses .

C o a l b r i q u e t t i ng can be pe rformed on 1 ump coal o r on coal fj ne sr t h el a t t e r a pp l I c a t i o n o f t e n b e in g a n at t e mp t t o s al va ge an o t h er w is e w ast edproduct of coal handling. The usual process o f coal br iq ue t t in g

1

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c o n s i s t s o f crushing, siz ing , drying, poss-ibly mixing wf th a binder,of t en heating, pressing i n molds, cool ing, and packagdng o r loadlng.[See Appendix A f o r a more d e t a i l e d d e s c r i p t i o n o f c oa l b r i q u e t t i n gprocess. 1

I n t h e U n i t e d S t a t e s i n r e c e nt y ea rs p c oa l br iq ue t t in g research has beend i rected mai nl y a t man ufac tur ing an aggl ornerate su i tab1 e fo r coalg a s i f i c a t i o n . Because t h i s i s an i n d u s t r i a l a p p l i c a t i o n and n o t oneaimed a t domestic user proper t ies such as mokine ss o r su l f u r emissionshave rece?ved secondary at te nt io n. A domestic 1ndu str y i n %charcoal Itbriquettes supplying the backyard barbeque market9 a l so exists, and t h eproduce rs o f t h i s p roduc t use some coal as a csnstltuent. However, i tmay be mixed w i t h t r u e charcoal i n t h e pro du ct io n process. The amountof coal used var ies , depending upon th e lo ca t i on of t he p la nt re l a t i v et o a coal source and t h e type of coal ava ila ble . Bituminous and 1 i g n i t ecoa ls must be carbonized, as described I n a l a t e r s ec tion, be fo re theycan be used i n t he ? backyard barbeque br i quet te . Ant hrac i te coal doesnot need t o be carbonized i n the manufacture of th e I fcharcoalstb r i q u e t t e .

I n o t h er p a r t s o f t h e wor ld , coa l b r i que t t e s p l ay o the r ro l es . I nEurope and th e Sov ie t Union, they con tin ue t o be used f o r domesticpurposesI es pe ci al ly home hea ti ng $ and some a t t e n t io n has been paid t ot h e smokiness o f th e product. I n India , where br iq ue t t es dersvec f r mcoal are used no t only i n space heat in g b u t a1 SO coaki ng, emiss ions area primary concern.

C. BURNING R N OR UNTREATED BRIQUETTEDCOAL PRODUCES EMISSIONS7HAT CAN HAVE SERIOUS HEALTH EFFECTS.

Whether raw or br iquet ted , th e burning o f coal produces emiss ions t h a tcan b e harmful t o human hea lth . T h i s i s e s pe ci al ly r el ev an t t o t h es u b s t i t u t i o n o f a coa l-based p roduct f o r fue lwaoch s ince th e l a t t e r i sused e x t e n s i v e l y i n d ev el op in g c o u n t r i e s f o r c ook ing , o f t e n i nunv ent l l a ted s i t uat ion s . Depending on t h e compos i t ion o f the coal andt h e compl eteness o f combusti on, burn ing coal re1 eases vo l a t i le organ1 cmatter, sul fu r compoundsp nit ro ge n oxide5, pa rt i cu l ates, and tr ac eelements. Each o f these has pot en t ia l adverse e f f e c t s on human health,and a r e discussed i n more de ta i l i n Appendix B.

EVER8 COAL CARBONIZATION SIGNIFICANTLY REDUCESME ADVERSEHEALTI1 EFFECTS FROM BURNINGCOAL OR COAL BRIQUETTES. THERESULT OF CARBONIZATIONI S A 50FT SMOKELESS COKE.Is WHILE

COAL ARE R E D I C T E D TO BE NO WORSE WAN T H O S E EMANATING FROMTHE CURRENT FUELSOF CHARCOAL AND FIRENO0D.

TESTING I S CURRENTLY I N PR(XRESS9 EMI SSI ONSFROM SMOKELESS

A1though subs ta nt i a1 adverse heal t h e f f e c t s coul d be expected f ranburning coal or coal br iq ue t t es f o r cooki ng p urpos es~ a we1 l -devel opedt e c h n i q u e e x i s t s t o c o n v e rt c oa l t o a sa fe r form f or combustion. Th is

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i s c oa l c a rb o ni z at i on , c o n v e r t i n g i t t o a "' so f t coke" by pyro lys l s .T h i s i s s i m l l a r t o t h e c o nv e rs i on o f wood t o c ha rc oa l. D u ri n g t h ehea t i ng o f the coa l w i thou t i t s combustion, vo l a t i l e con ten t i s reduced,and gases and t a r s co nt ai ni ng some of t h e o t h e r h ar mf ul c o n s t i t u e n t s a r eg l v e n o f f . The r e s u l t i s a product hi gh i n fi x e d carbon, which can beburned wi t h 1 i t t l e or no smoke and mi s s i o n s no worse tha n th e presentpr ac ti ce of bu rni ng coal and firewood. Carboniza tion can be performedb e f or e o r a f t e r b r i q u e t t i n g -- o r w e n w i t h o ut b r i q u et t i n g , i f i r r e g u l a r" s o f t coke" lumps and l o s s o f th e coal f i ne s ar e acceptable . [SeeAppendix A , ] Because t h e s o f t coke i s v l r t u a l l y smokeless9 i t w i l l ber e f e r r e d t o of t en as ?"smokeless coal" i n th e remainder o f t h i s document.

One of th e importa nt aspects of th e coal carb oni zat ion process i s t h a tmany of th e po te nt ia l l y harmful co nst i t uen ts o f coal are removed. Asmentioned, most o f t h e v o l a t i l e s a r e d r i v e n o f f d u r i n g p y r o l y s i s f n t ot h e o ff -gases , t a r s , o r l i q uor s . A c e r t a i n l ev el o f v o l a t i l e s i s l e f ti n t h e s o f t c oke ( ap pr ox im at e ly 1 t o 20%) t o promote i t s easy i g n i t i o nC61, but t h i s le ve l i s deemed safe and does no t a l l o w th e fue l t o smokes i gn i f i c an t l y. Many o f th e po te n t i a l l y ca rc inogen ic and o th e r o rganicco ns ti tu en ts , such as benzo(a1pyrene ( B a P ) , to 1 uener benzene, et c. , caneo ut i n t he t a r .

The s u l f u r c o n te n t i s a l s o r educed a s t h e s u l f u r i s co nv er te d t ohydrogen su l f ide gas. Actual ly, severa l s teps can be taken fo r s ul fu rremoval t o make th e f i n a l smokeless coal l u m p o r b r i q u e t t e r a t h e r c l e a nwi th respect t o su l f ur oxide emissions . Washing t h e coal wi th waterp r i o r t o p y r o l y s i s i s a simple, inexpensive, and e f f e c t i v e step. Moresu l f u r i s removed dur ing t h e ca rbon iza t i on p rocess . F ina l ly , i f t h ecoal i s a h i g h e r s u l f u r co al , l i m e or l imestone can be added t o th ef i n a l b r i q u e t t e so t h a t any r emain ing su l f u r combines wi th i t andremains i n t h e ash upon combustion. The co st o f 1 ime, i f needed, I sa l s o v e r y l o w p r e p r e s e n t i n g o n l y 1% o f t h e p r i c e o f a s o f t cokebr i qu et t e i n a model pl an t scenario con str uct ed by Fabuss and Tatm.C63

Par t i cu l a t e s a r e conside rab ly r educed by the process o f carbonizat ion.Only minor f l y ash r e su l t s from combust ion of th e carbonized fu el .Also, wh i l e the t empera tu re o f ca rbon iza t io n i s no t h igh enough t oremove many o f t h e t r a c e e le me nt s by v o l a t i ~ a t i o n ~ e it he r i s t h etempe rature o f combustion o f t he smoke1 ess coal. Thus, wi th ou tp a r t i c u l a t e s t o wh ic h t o a dsorb, t h e t r a c e e le me nt s r em ai n i n t h e ashwhen t h e smokeless coal b ri qu et te s ar e burned. Th is keeps t he lev el ofhuman exposure t o t r a ce e l ement s a t an i n s ig n i f i ca n t l eve l .

One remaining he al th e f f e c t shoul d be mentioned. The produc t ion of so f tcoke can expose worker s t o dange rous cond i t i ons un le ss s t r i c t con t ro l sare imposed. Coal d us t i n c ok i n g p l a n t s i s o f t e n v e ry h ig h andd i f f i c u l t t o suppress. The po te nt ia l carcinogens i n th e coal ta rs r suchas BaP, suggest ca re f ul hand1 in g of these by-products. I n develo pingc o u n t r i es , a t t e n t i o n t o w or ke r s afeTy i n c a r b o n i z a t i o n p l a n t s I s n o ta1 ways g iv en due at te nt io n. [I61

It should be noted t h a t Carbonizat ion i s onl y needed f o r co al s below t h erank o f a nthra ci te , t h a t i s , f or b i tuminous , subbi tuminous, and 1 i g n i t ecoals. A n t hr a ci t e i n i t s n a tu r al s t a t e i s s u f f i c i e n t l y low i n v o l a t i l e

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and ash c o n t e n t s and h i g h i n f i x e d c a rb on t h a t c a r b o n i z a t i o n i sunnecessary for a ,smoke1 ess fu el . Hwever, an th ra ci te s ar e re1 a t i ve l yrare.

E. THE COSTS ASSOCIATED WITH 3 R I Q U E T T I N G PND C A R B O N I Z I N GCOALI N D I C AT E A SELLING PRICE FOR SNOKELESS COAL BRIQUETTES INSOME URBAN AREAS THAT MAKETHEM CX)MPETITIVEW I T H FUELWOODANDC H r n C Q K .

Fabuss and T a t m C6l e s t i m a t e t h e c o s t s of c o n s t r u c t i n g a 100 me t r i c tonpar day ( coa l i np u t ) b r iq ue t t in g and ca rbo n iza t ion p l an t f o r Pak i st an.Whdfo t h i s i s a moderately s ized pl an t and t o a c e r t a ln e xt en t t i e d t ocon d i t ion s found i n Pak is t anr a r ev iew o f t h e i r e s t ima tes can g ive ani d ea of t h e e c o n m i c v i a b i l i t y o f t h e c oa l b r l q u e t t i n g / c a r b o n i z a t i o ntech no1 ogy.

The p l a n t v i w e d i n t h e l r s ce na ri o t ak e s t h e p at h o f an " i n t e r m e d i a t etechnology." I t would be capable of recover ing t h e coal t a r and o i l ,but none of t h e U ~ Q U S iquors . The process off -ga s would be used t ogenerate 100% o f t h e power r q u i r e m e n t s f o r t h e p l a n t . U t i 1 z i n gP a k i s t a n ' s h i g h s u l f u r l i g n i t e co al , t h e b r i q u e t t e s w ou ld be form edw i t h o u t a binder, but 1 ime would have t o be added p r i o r t o b r i q u e t t i n gt o r educe su l fu r mis s io ns . The p l an t wou ld have 66 t o n s per day o u t p u tof moke l ess coal br i quet tes . The r a t i o of 100 tons per day coal in pu tt o 66 tons per day output o f smokeless coal br iq ue t t es was f ig ur ed f o r a

t i c u l a r P a k i s t a n i c o a l r and o t h e r c o a l s w ou ld g i v e v a r y i n g y i e l d s .ever, t h e PO0 t o 66 r a t i o i s I n t h e m i dd le o f a range of about 55 t o

75% t h a t m ig ht b e expected from var ious coals .

Tota l inves tment costs , in c l ud in g th e cos t o f i n s t a l l e d equipment, s i t epreparation, bui 1 d i rigs, engi neer i ng and c on t i ngenci esa ar e put a t2,130,000 U.S. d o l l a r s (1982$) . About hal f o f t h i s amount would ber q u i ed t n fo r e ign exchange. Opera t ing c o ~ t s , i nc lud ing coa l r 1 me,1abor, m a i ntenancep 1 o a n r e t i r ent, a 25% p r o f i t on these manufacturingcost s , and t r a nsp or t a t i on b r ln g t he p r i c e o f smokeles 1 b r i q u e t t e st o 1 5 2 8 Pakis tani rupees ( R s . ) p er m e t r i c t o n o f o i l i v a l e nt (TOE)anywhere within a one hundred m i l e ra diu s o f t h e p l an By va ry ingth e scale of th e p lant , Fabuss and Tatcxn fur th er es t imate t h a t th e cos to f smokeless coal br iq ue t t es per TOE would be Rs. 1622, Rs. 1466, andRs. 1407 f o r p l a n t s w i t h c oa l i n p u t s o f 2 5, 300, and 1,000 m e t r i c t o n s(tonnes) per dayr res pec tiv ely . 3y c parison, f i r ood c o s t s a87average o f Rs. 2117/TOE. Thusl th e coal br iq u et t i ng/carboninat ion

opera t ion appea rs t o be econcmica l l y compe t i t ive , Moreover, t h i s i s t h ecase wi th ou t even cons ide r ing th e po te n t i a l va lue o f t h e coa l t a r by-product. If a market f o r t h i s can be found, w e n i f used only as boi lerf u el , e i t h e r p l a n t p r o f i t s c ou ld be r a i s e d o r t h e p r i c e of t h e m o k e l e ss

1/ I n 1982 when the cost estimates were mader 1 US$ e q u a l l e dapproximately 12 Rs. I n 1985, t h e exchange ra t e i s approximately 1US$ t o 16 Rs.

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coa l b r i qu e t t e s cou ld be subs i d i zed w 4th the by-product i cme andb ro ug ht t o a y e t l o w e r l e v e l .

Favorable economics f o r coal b r iqu e t t e s a1 so appea r 1 ik e l y fo r t w o urbanareas i n Peru, namely Lima and Puancayo. b r e w e r , t h i s countryp r o v i d e s

anexample where he av il y subsidi zed kerosene mi gh t be di splaced

by smokeless coal briquettes. As s m ma r iz e d i n Tab l e 3 , t h e UNDP/WorldBank es t im ate t h a t coal b r i qu e t t e s a:; a cooking fuel would cos t U S $ 9.30- 13.30 per ca pi ta per year.C1812/ By comparison, fue lwoo d used i n anopen f i r e c o s t s US$ 10.80 - 15.00 pe r ca pi ta per year i n Wuancayo andUS$ 27.58 - 31.70 i n Lima. Al though th e cos t of a s tove i s n o t i nc lu de di n these e s t ima tes , t h e coa l b r i qu e t t e s appea r economical ly compe t i t l v ewi th fuelwood on an ope ra t in g cos t basi s . Wi t h respect t o kerosene,Table 3 i n d i c a t e s t h a t i t i s cheaper than coal b r iq ue t t e s l bu t on lybecause of a la rge subsidy. If the subsidy on kerosene were 7 i f t e d ,coal b r i q u e t t e s c o u ld d i s pl a c e I t a s a co ok in g f u e l, a t l e a s t on a cost-of- fue l basis. Since kerosene i s s u bs i di z ed i n o t h e r c o u n t r i e s a s we l l,t h i s c o n c l u s i o n m i g h t be general.

Table 3 . C oo ki ng f u e l c o s t s i n Per u(US$ per cap i t a pe r yea r )

FUR HUANCAYO LLMA

Woodused i n open f i r euse i n improved s tove

10.80 - 15.00 27.50 - 31.705.40 - 11.20 13.80 - 23.70

Ch a rcoal 33.90 5 8.50Coal Br iq ue t t es 9 .30 - 13.30 9.30 - 13.30Kerosene

w i t h current subsidyunsubsi dized

7.7021 oo

7.7018.50

Source: UNDP/Worl d Bank C181

- / T h i s t r a n s l a t e s i n t o US$ 139 - 1 39 per TOE. Costs of o the r cook ingf u e l s a r e n o t t r a n s ? a te d i n t o d o l 'l a r s p er TOE because t h e method usedby the UNDP/World Bank t o es t ima te t h e i r c o s t s per cap i t a pe r yea ri nv o lv ed d i f f e r e n t u t i 1 z a t i o n e f f I c i e n c i e s f o r t h e d i f f e r e n t f ue ls .G i v i n g a cos t pe r TOE f or a l l f u e l s would be misleading.

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I V

A. COAL CARBONIZATION HAS BEEN PRACTICED EXTENSIVUY I N INDIA.WE I N D I A N EXPERIENCE I S INSTRUCTIVE BECAUSE A WIDE RANGE OFTECHNOLOGIES AND COAL TYPES HAS BEEN UTILIZED. I N D I A H A S

AND ALL HAVE BEEN USED FOR CARBONIZATION. TEWNQLGIESRANGE

CARBON I Z ATION PLANTS.

DEPQSITS OF BITUMINOUSI SUB-BITUMINWS, AND LIGNITE COALS,

FROM ONE-PERSONS "V1LLPl;rE CO PILES ' TO ADVANCEDTECHNOLOGY

The advanced t ech nol ogy coal ca rb on iz at io n p l a n t s .Bn India demonstra teseveral d i f fe re nt technol ogies . The mast advanced, which are e i t h e rgovernment pi1 o t p l an ts o r comrnerci a1 p l a n t s model ed on governmentp r o j e c t s a rac t i ce f u l l by-produc t r ecovery. The smoke less coa l ( s o f t

coke) i s &te n produced i n a cont inuous process wi th crushed and s ize dcoal or b r i q u e t t e d c oa l e n t e r i n g t h e t o p o f c a rb o n lz i n g r e t o r t s and s o f tcoke issuing a t t h e bottom. The gas may be used t o cool t h e s o f t cokerand, having been heated, reen ter t he ca rb on iz in g se ct io n a s a f u e l . I fth e c leaned gas i s no t immeddately recycled as fuel , i t can be used f o re l e c t r i c i t y g en er at io n o r f o r town gas? t h e l a t t e r u se b e in g p la nn ed f o rt h e c i t y o f C a lc u tt a . S i m i l a r l y, t h e t a r s and 1 i q u o r s a r e r et a i n e d r andmay be (1) used a s f u e l i n t h e c a rb o n iz i n g o p e ra t i on o r s o l d f o r b o i l e rf u e l o r (2 ) be r e f ined i n t o f i n e chemicals. The scales of t he p i l o tp l a n t s r u n from 20 t o 25 t o n s per day (TPD) o f coal input, whereas th ef u l l s c a l e p l a n t s can hav e de s ig n i n p u t o f 1500 t o 2700 TPD. The p l a n t sa t th e upper end of t h i s range do not gen era l l y run a t f u l l c ap ac it y.

Intorrnedi at e techn ol ogy p l a n t s a1 so e x i sL i n I n d i a, Agai n, crushed orb r i q u e t t e d c oa l t r a v e l s th ro ug h r e t o r t s or poss ib ly on cha in g ra t e sthrough a k i l n f o r ca rbon izat ion . The in t e rmed ia t e t echno logy p l ants,however, p rac t i c e l i m i t e d or no by-product recovery. I f no by-productrecovery i s pursued, these pl an t s can be heavy po ll ut er s. Often, th eoff-gases a r o passed through a scrubber, bu t t hen vented t o theatmosphere. Tars and l i q u o r s al so a r e not recovered. S t i l l , i t i spossi b l e t o c o n s t r u c t i terrnedi at e technol oyy pl ant s which, wh il e no trecxwering every chemical f r ac t i on separate ly, re ta in useful by-productssuch as soad-surfaci ng m a t e r i a l , b a i l e r f u e l , and off -ga s fue l. Fabussand Tatom i n di c at e t h a t such an operation can be accornpl is he dr e1 a t l v e l y e a s i l y and y e t w i thcrut great c o s t . . rC61 A d d i t i o n a lcap i t a l cos t s can be expec ted t o run on the o rde r of 5% t o l m r and i twok11 d reduce t h e po l l u t io n p roblem. I n Indda , t h e sca l e o f t h ei n t e m e d i a t e te ch no l ogy pl an t s runs f r a n 25 t o 100 TPD co al in pu t. c161

The s t v i l l a g e c o al p i l e ' i s t he s imples t technology of a l l 9 and t h eh e a v i e s t p o l l u t e r. A p i l e o f coal and coa l f i ne s i s i gn i t ed and whenthe smoking stopss i t i s nates quenched. By rm ov in g ou te r ashr an

18

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i n n e r c ha r i s fo un d t h a t can be used as a smokeless f u e l . Smoke f r msuch a process can be seen for miles.

The major dif fe re nc e in tro duc ed by -:he d i f f e r e n t type s of feed coal usedi n t h e i n d u s t r i a l c a r b o ni z a t i o n p l a n t s has t o do w i t h b r i q u e t t i n g . The

bit um in ous and subbltum inous c o a l s may o nly be crushed and sized, b u tn o t b r i q u e t t e d p r i o r t o ca rbon lzat ion . Hwever, b r i qu e t t i ng o f th e coa lor smokeless coal .fines may occur. Coal f in es ar e br iq ue t t ed wi t hmolasses, be nt on i t e (c l ay) , or an ino rga nic b ind er by th e Indians. Sof tcoke f i ne s may be br i que t t ed wi t h a s t ar ch b in de r. Wit h t h e l i g n i t i ccoal s p b r i q u e t t i n g p r i o r t o car bon iza t io n i s performed. The producerstak e advantage o f t he proper ty of 1 i g n i t e t h a t a ll ow s i t t o beb r i q u e t t e d w i t h o u t a binder. The br i qu et te d form of th e smokeless coalo u t p u t g i v e s i t a d i s t i n c t i ve appearance. Th i s a l l ows i t t o be e a s i l yd i s t i n g u i s h e d from lump coalr so t h a t i t cannot be adulterated byd i shonest deal ers.

P r o f i t a b i l i t y o f t h e v i l l a g e c oal p i l e and i nt e r m e d i at e t ec hn ol og y

p ro du ce rs i s p o s i t i ve , i f onl y marginal a t t imes. Costs ar e reduced byavoi ding ca pi ta l inves tment t o recover by-products . The high technol ogyproduce r s mus t o f t en ope ra t e unpro f i t ab ly f o r seven, eight, or t e n ye ar sbef ore reaching t h e break-even poi n t . The d i f f c u l i e s t h a t p l ague thel a r g e r o pe ra ti on s, i n a d d i t i o n t o h i g he r co st s, a r e i r r e g u l a r co alsuppl i es , t r a nspo r t a t io n d i f f i c u l t i e s , power outages, l ab or p rob l cans$and t h e i n a b i l i t y t o s e l l by-products. A1though hi gh techno l ogyappl ic a t io ns may be more pro f t a b l e i n th e long-run, Schwartz and TatomC161 recommend appl i c a t i o n o f intermed-l a t e 1 eve1 s of technol ogy wi thsome by-product r ecovery fo r o the r deve lop ing coun t r i e s . I n t h i sfashion, sane of t h e r i s k o f h i gh t ec hn ol og y p l a n t s a s w e l l as t h epol 1u t i o n p ro bl ems of ven t? ng by-products can be avoided.

B. I N D I A HAS DEVELOPED A SMOKELESS COOKING STOVEWHICH CAN USERAW COAL AS A FUEL SOURCE WITH NO DETRIMENTALHEALTH EFFECTS.

F i n a l l y, a te ch no lo gy u ni qu e u n t o i t s e l f has a r i s e n fran t h e I n d i a nexperience. Th ls i s t h e %smokeless cookin g stove,' which u5es raw coalra ther than smokeless coal as i t s i n i t i a l f u e l . It t h e r ef o r e c m p l e t e l yavo ids the c o s t of coal car bon iza t io n plants . Developed by th e In di anCent ra l Fue l Research I n s t i t u t e (CFRI) , the stove can be manufacturedf o r a b o u t 50 rupees ( s o f t coke s toves cos t approximately 3 0 rupee+--1982rupees). Based on t h e savings of buyin g coal rather than smokelesscoa l, t h e cos t o f t h e s tove can be r fxove red i n on ly a few months. T h i s

I sbased

ona 1982 r e t a i l c oa l p r i c e i n I n d i a of about

180rupees per

tonne and th e s o f t coke cost of about 720 rupee s pe r tonne. Assuming afami ly o f fi ve , which would use about a tonne of s o f t coke per year., a

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ne t s av ings o f 490 rupees c o u ld be r e a l i z e d by t h e f a m i l y i n t h e f l r s tyeas of operation on coal-C1613/

The s tove cons i s t s o f two cy l i nd r i ca l , conc entr lc compartments, th einner one being a smokeless coal combustion zonep and t h e ou te r oneb e in g an a i r - t i g h t c oa l c a r b o n i z a t i o n mane. S iz ed o r b r i q u e t t e d c oa l i sloaded i n the ou te r zone t o be ca rbon ized fran t h e h e a t o f b u r n i n gsmokeless coal i n th e i nn er zonep which al SO suppl i e s cooking and spaceheat ing needs. The off -gases ar e mixed wi th a i r below th e mo kel esscoal bed and t hu s consumed. The nex t day, t h e car bon ize d coa l from t h eoute r zone i s consumed i n th e i nn er zone, wh i l e ne# coal i s added t o t h eout er compartment. The only disadvantages appear t o be t h a t th e coalmust be s ized ca re fu l l y, th e opt lmal st ov e design depends on t h e typ e o fcoal burned--a1 though a1 1 ty pe s a r e candi dates--and no by-productrecovery i s poss i b l e. Thus, t h e C F R I smoke1 ess sto ve po te nt i a1 l yrepresents an ext rad ord i nary innovat ion, being "a c l ean-burning, sel f-s u s t a i n i n g syst em i n w hi ch t m o r r e w t s [ s o f t ] coke i s produced today,w h i l o t h e Csoft3 coke made yest erd ay i s ba fng consumed~~.C161

C. KOREANS HAVE USED R M ANTHRACITE C B f i k BRIQUETTES EXTENSIVELYFOR COOKING AND HEATING. THE KOREANS STARTED C O N

BRIQUETTINGPLANTS I N ME COUNTRY.BRIQUETTING I N 1930, AND THERE AF?E NCW APPROXIMATELY 20 LARGE

Korean br iq ue t t es are comprised of 90 Korean anthraci te and 10% Chineseco ki ng coa l, They ar e ver y large? by comparison t o o the r coa lbr iq uet t es , weighing approximately 8 to 16.5 pounds each. They a r epressed a t o n l y 170 t o 240 p s i , and do no t meet normal b r i q u e t t ecompression s t r e ng th c r i t e r i a : t hey can be b roken wi th th e f inge r s ,the y crus h when dropped, and pr ob ab ly would no t stan d up t o weathering.They re al ly art3 only I ta we l l compacted coal t h a t i s i n a convenient f o rmf o r hand1 ny. rlC61

I t i s i mp or ta nt t o no te tha t t he Korean expe r i ence cou ld no t bet r a n s f e r r e d t o many o t h er c ou n tr i es . F i r s t , a n t h r a c i t e ( a lo n g w i t h amal l amount o f cok ing coa l ) i s used t o manufac tu re the Koreanb r i q u e t t e s . As ment ionedr an th ra ci te can be used as a smokeless fuelf o r cooking wi t hou t carbonizat ion. However, an th ra ci te s ar e rare , andthus the Korean method of b r i q u e t t l ng w i t h o u t c a r b o n i z a t i o n c an no t bet r an sf er re d t o many othe r countr ies . Second, th e s ize of th e Koreanbr iq ue t t e s i s abnormally l a rge . Th l s i s because they use than fo r bo thcooking and heat ingr in vo lv in g a 24-hour operation. Th is would n o t ber q u i ed i n most A. I. D. countr ies .

I n t h i s examples Schwartz and P a t m E161 have obv io usl y assumed t h a ta f ami ly us ing one tonne o f s o f t coke per year would al so use aboutone tonne of coal pet- yea r i n t h e smokeless stove. Since t h e r e maybe h e at l o s s e s i n c o n v e r t i n g from c oa l t o s o f t coker t h t s nay not becompl et el y accurate. S t i l l , t h e econ i c advan tage of t h e m a k e l e s scooking s t o v e i s l a r g e enough t h a t t h l s s ho ul d n o t change t h econcl us i on of quick cost recovery.

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V. THE POTEl UILLFOR CCEAL.B.RIQUETTETITU.TIONJ N A I.D. ASSLSIEDC m

A. SIGNIFICANT OPPORTUNITIES E I S T TO MITIGATE THE FUELWOODCRISIS AROUND THE WORD. A PRELIMINARY EXAMINATION OF THESEVENTEEN RE3 IOUSLY IDENTIFIED COUNTRIES INDICATES THAT FOURAPPEAR TO HAVE AN IMMEDIATE POTENTIN: BOTSANA, HAITIIINDIA, AND PAKISTAN. ANOTHER ELEVENCOUNTRIES APPEAR TO HAVEA NEAR-TERM ( 3 TO 5 YEARS POTENTIAL: INDONESIA, MIROCCO,NIGER, PERU, PHILIPPINES, TANZANIA, THAILAND, SWAZILAND,ZAIRE, ZAIUBIA, AND ZIMBABWE.

The pervasiveness o f th e fu el wood c r i s i s among A. 1.5. ass i s t ed coun t r i e si s exempli f ied by the f ac t t h a t wi l y two African, one Near Eastern ,seven L a t i n American, and one Asian coun try have sa ti sf ac to ry woodenergy suppl ies. The reserves and production of coal i n A. I . ass is tedcountries were a1 so determined. O f t he twenty -one p rev ious ly id en t i f i edcountries sixteen have sane measure of current coal production and onecountry, H a i t i has th e p ot en ti a1 f o r immedi at e coal devel opnent.

Although the av a i l a b i l i t y of coal i s, of course, a necessaryp r e r q u i s i t e f o r s u b s t i u t i ng a smoke1 ess coa l-d er iv ed fu e l f a r f i w o o dand charcoa lp ot he r fa ct or s a r e equ all y important. Among these are:(1) t h e n at ur e of fuelwood use ard supply, (2) t h e l o c a t i o n o f c o a ldepo sits re1 a t i v e t o demand centers, ( 3 ) demographics, ( 4 ) t h e e x t e n tand adequacy o f distribution systms, ( 5 ) markets, (6) t h e e x t e n t o fgovernment involv ement i n energy pl anni ngO and (7) t h e compati b i l t y o ffuel use wi th social custcxns.

The examlnation of these seventeen countries i s based solely onsecondary data sources. The un if or mi ty and consistency of in fo rma ti onva ri es conside rably among countrie s, and f o r saner i n fo r ma t io n i s n o tav ai l ab l e. To be sure, sane count r;ies have a higher immediate pot ent ia lf o r coal br lq ue t t in g techno1 ogy. Countr ies t h a t have especi a l lyfavorable c i cwnstances are br ief ly d iscussed bel ow. Appendix Cprovides a more detailed examinatlon of t he seven teen iden t i f i edcount r s.

I n Africa, Botswana appears t o have an immediate po te nt ia l for coalbr iq ue tt i ng . Botswana has la rg e coal reserves and re l at fv el y l w coalex t r ac t i on and t r an spor ta t i on cos ts . Fur ther, the popu la t ion i sc on ce nt ra te d i n t h e e as te rn t h i r c o f t h e c o un tr y and i s f a vo r a bl yloc ate d t o ra il ro ad s and roads. Bec:ause th er e i s no charcoal prod uctlo ni n t h e country, smokeless coal br i que t t e s would have t o s ubs t i tu t ed i re c t ly fo r f ir ewood. Hwever, the d i ff us io n o f coa l b r i que t t e s cou ldbe coordinated wi th the USAID program t o develop and demonstrate f ue l-e f f i c i erst stoves. Morocco, Niger, Tanzani a, Zambial and Zimbabwe a1 1have a nea r te rm po ten t i a l th a t depends l a rg e ly on th e add i t i ona ldevelopment of coa l r eserves. In fo rmat ion i s no t ava i l ab l e on two

2 1

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co un tr ie sr Swaziland and Za lr ep w it h which t o make an evalua tion.However, t h e UNDP/World Bank w i l l have completed an energy assessment i nboth o f t hese co un t r i e s wi th in th e nex t s i x months.

Coal car bon iza t i on and br iq uet hin g has been ongoing i n In di a f o r anumber of years a s has been re po rt ed by Schwartz and T a t m C161. Thei s s u e i n I n d i a i s n o t w he th er co al b r i q u e t t i n g h as any p o t e n t i a l , b u twhether thei t exper ience can be t ransferred t o o t h e r d e v e lopi ngc o u n t r i e s . P a k i s t a n i s one c ou nt r y t h a t sh ar es many s i m i l a r i t i e s t oI n d i a r in c l ud iny pe rvas ive fue l wood d e f l c i t s and ma jor depos i t s o f coa l eAn in ve st ig at io n by Fabuss and Tatom E61 c o n c l u d e d t h a t t h e c a r b o n i z i n ga n d b r i q u e t t i n g o f coal and /o r t he b r i qu e t t i ng and d i r e c t u t i 1 z a t i on o fcoal i n a smoke less s tove i s both t e chn ica l l y and economical ly f e as i b l ei n Pakistan. Two o t h e r c o u n t r i e s i n t h e r e g i o n app ea r t o h av e a nearterm po te nt ia l, t h e Ph i l i pp i nes, and Thai1 and. Ind one sia a1 so has thep o t e n t i a l from t he pe r spec t ive o f having l a rge coa l depos i t s andfuelwood shor tagess a l though th e lo ca t i on of coal reserves1 a heavysubsidy on kerosene, and t h e po te nt ia l a va il a b i l i t y o f an a l e r n a t i v efu el i n 1 iq ui d propane gas compl ic a t e Indonesia ' s prospects .

I n L.a ti n America, H a l t i s tands out as a country wi th an immediatepo te nt i a1 fo r coal b r q u e t t i ng. The co un tr y has ac ut e f us1 wood def l c i st h roughou t the i s l an d and l a rge depos i t s o f 1 gn i t e . Because o f lowest imated 1 i g n i t e ex t r ac t i on COStsJ adequate t ra ns po r t a t lo n networks,and a dense u rban popu la tiond th e cos t s o f coa l b r i qu e t t e s shou ld eas i l yp ro ve t o be c o m p e t i t i v e wa'th ch ar co al i n s p i t e o f t h e l a c k o fenforcement o f stumpage fees and l o w Wood severance taxes . I n t h e nearte rn Peru has a po t en t i a l f a r coa l b r iq ue t t in gJ a l though h igh subs id ie san kerosene present an impediment t o t h e p r i c e c o m p e t i t i v e n e s s o f t h ecoa l b r ique t t e s .

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Tab1 e 4 . P o t e n t i al of A. I . D. ass1 sted c o u n t r i e sf o r coal br i q u et t i ng

---

. Four coun t r i e s appear t o h a v e immedia te potent ia l :. Botswana. Hait i. India. P a k i s t a n

. E l e v e n c o u n t r i e s a pp ea r to have near-term po ten t i a1 :.. Indonesi aMorocco

NigerPeruP h j l ippi nesTanzaniaThai 1andSw az i 1 andZ a i r eZambi aZ imbabw e

Source: Ta b l e 1 and 2 .

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V I .

A. I MP L E K N T I N G S W K ELESS COAL BRIQUETTIN G I N A.I ASSISTEDCOUNTRIES WILL BE SASED ON EXPERIENCES GAINED BY A.I.D. I NH A I T I AND PAKISTAN.

A. 1. D. Wash i g ton/Of f i c e of Energy w i l l be gai ni ng experiences onsmokeless coal br iq ue t t in g technology and market po te nt ia l i n two wlde lyd i spe r sed and d i ff e r en t deve loplng co u n t r i e s Wai t1 and Pak is t an. P r io rwork i n H a i t i has conf i rmed t h e ex i st ence o f a s u b s t a n t i a l l i g n i t eresourcer and t h e need f o r a fuel waod /cha rcoal replacem ent has beendemonstrated. I n January 1985, pl annlng began t o sampl e and ana ly ze t h ecoal def i ne th e tech nica l aspects of ca rbon izat ion needed, performmarket s tudies , def ine th e need f o r a p i l o t p la nt , l o o k a t p o t e n t i a l by-

product recoveryr and in ve st ig at e o the r aspects o f imp1 me nt in gsmokel ess coal b r i q u e t t i ng.

I n Pak is tan, t h e A. I.D, Miss ion p rov ided p lan s i n October 1 9 0 4 f o ri t i a1 s teps t o i pl m e n t moke? ess coal b r q u e t t i ng there. These

i vol ve assessi ng t h e capabi 1 i t i s of 1 oca1 market res ear ch f i ms,surveying consumers a n d r e t a i l ers, i d e n t i f y i n g t h e p o t e n t i a l m ar ke tsegments, undertaking a %eedg8 m a rk e t w i t h p r i v a t e d i s t r i b u t o r s usingsmokel ess coal br i q ue t t es prov ided by A. I. D. /GOP, and expl o r i ng thepossi b i l t y o f amy p rocur en% of th e b r ique t t e s .

As the work goes on i n t hese f i r s t t w o cou ntr fes t o implement smokelesscoal br iq ue t t e manufactur ing and rnarket i ng, t h e experience gai ned by

ashingtonw i l l

p ro ve h i g h l y u se fu l i n a p p l i c a t i o n t o o t h e rA . I . D . cou ntr ies . I n advance of these experiencesr many idea s have beenpresented t o he l p in s u re th e success o f smokeless coal br iq ue tt in g, andt h ey have been o rg an i ze d i n t h i s s e c t f o n i n t o an a c t i o n p l an or s e t sfs t r a t e g i es f o r r e al i z i n g t h e p o t e n t i a l f a r c o a l b r i q u e t t i ng i A. I .assi s ted countr ies ,

8. F I V E STEPS ARE NECESSARY 79 SUCCESSFULLY I M P L E E N T SMOKELESSCOAL BRIOUETTING AND MARKETING I NA. I.D . @BUNTRIES. THESEINCLUDE A RESOURCE EVALUATION, A MARKET ASSESSMENT, ATECHNOLEY ASSESSMENT, A S N D Y OF GOVERNMENT POLICY ANDPLANNING, AFID PACKA GINGINWE I D E A FOR ME PRIVATE SECTOR TO

IMPLEMENT.

1. . This prospectus has ecl t o p u l l t og et h erf r es ou rc es i n A. I . co t o d em on st ra te t h e

p romise o f t h i s i dea , Howeverl more de ta il ed work on depo sit snecessary i n i n d i v i d u a l c o u n t r i e s pl a n n in g t o implement the strategy.The sims and w or ka bi l i t y o f coa l depos i t s f r m a geological s tandpoint

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must be ascertained. The l o c a t i o n of coal deposf ts r economic vdab i l i t y,and p rox i mi t y t o ex i s t i ng t r a nsp or t a t i on syst ems and marke t s mus t a1 sobe de fined . The coa l depos i t s ' l o ca t i on and t h e i r p rox im i ty t o ex i s t i ngI n f r a s t r u c t u r e w i l l a f f e c t t h e c o s t of t h e co al b r i q u e t t i n g te ch no lo gy.

2. -W&KFT ASS-T. I n o r d e r t o d e te rm in e t h e b e s t c a nd i da t ecommunities and users8 a market fe a s i bi l i t y s tudy should be undertaken.Where feasible, a pre l iminary s tep t o ca r ry i ng ou t t he marke t s tudywo ul d be t o as se ss t h e c a p a b i l i t i e s o f local market research f l rmsj oneo f these fi r m s co ul d implement t h e actu al study. The market assessment

s e l f shoul d cl ude examinati on o f th e t a r g e t popul a t i on8so ci oe co no mi c and c u l t u r a l c h a r a c t e r i s t i c s ( p a r t i c u l a r l y w i t h respect tocooki nglr urban fu el user f uel pr ices, and obs tac les t o acceptance o ft h e new coal-based f ue l, etc.

The ma.rket study should b e g i n w i t h a thorough assessment of currentfu e l s used, t h e i r sourcesI t h e i r p r ices, and th e qu an t i t i e s used pe ryea r. The assessment w i l l i n mos t cases occur i n se l e c t ed u rbance n t e r s fo r r easons no ted below. The fue l t ypes and qu an t i t i e s w i l la f f e c t t h e v o l u m e o f c oa l a nd b r i c u e t t e s t h a t c an p s t e n t l a l l y p e n e t r a t eth e market. The pr ic es of a l t e r n a t i v e f u e l s w i l l be a primarydeterminant o f the po te nt ia l o f smDkeless coal br iqu et t es . Not onl y t h ecur r en t p r i ce r bu t a nea r- te rm fc ir ecas t o f fue l p r i ces and qu an t i t i e swou ld be he lp fu l i n de te rmin ing the necessa ry en t ry p r i c e fo r coalbri que tt es. A1 so, de te rmin ing th e cu r ren t sou rces o f f i r w o o d andcharcoal supply would help evalu ate th e po te nt ia l f or smokeless coalb r i q u e t t e s t o p en e tr a te the fuel use market and reduce defo res tat ion .

An assessment o f t h e co un tr y' s demographics and a pa r t i c u l a s examina t iono f th e t ar ge t po pu la t i onf s socioeconomic and cu l t ur a l make-up ar e asecond p a r t t o t he market s tudy. Examination of t he propo r t i on o fpeo ple i n c i t i e s v e rs us t ho se i n r u r a l a re as and t h e d i s t r i b u t i o n of t h ei n h a b i t a n t s i n t he se s e t t i n g s w i l l a f f e c t t h e ma rk et p o t e n t l a l o fb r ique t t e s . It seems c l e a r t h a t i n most c ou nt rf e s, t h e i n i t i a li n t r o d u c t i o n o f smoke1 ess c o a l b r i q u e t t e s w 11 1 ta ke p l ace i n urbanareas? both t o take advantage o f a concentrated market and because thef uelWood d e f i c i e n c i e s a r e most a c u t e i n c i t i e s . Also9 t h e r u r a lpopu la t ion may no t be i n a commercial f irewoo d market, and generating acommerci a1 market f o r br i qu e t t e s coul d be d i f i c u l t.

The market assessment should examine energy use by f u el t y p e i nd i f f e r e n t economic Sectors, in cl udi ng househol d s r commerci a1establ ishments, small in du st ri es , and pub1 i c i ns t i t ut i on s. The:po t en t i a1 fo r su bs t i tu t i on o f smoke1 ess coa l b r i que t t e s i n each of thesesec tor s must be eval uated. Besides pr i cer one hi gh ly s i gn if i ca nt f ac to rf o r substitution p o ss i bi l i t i e s i s consumer acceptance. Whatc h a r a c t e r i s t i c s must t h e b r i q u e t t e h av e t o o b t a i n acceptance, e.g.s iz e t shapet i g n i t i b i l ty , packagiEg, d i s t r i b u t i o n points , needs f o r newequipment? H o w does t h e user fe e l about us ing smokeless coal r e l a t i v et o t h e c u r r en t f u e l used? One approach i s t o conduct surveys o f ce r t a i nse ct ors p say t h e househol d and commerci a1 sec tor s. These surve ysassessi ng th e po t en t i a1 acceptance of smoke1 ess co al br i qu e t t e s cou7 d bet i e d t o ge t h er w i t h t h e i n f o r m at i o n ga t h er i n g on c u r r e n t f u e l use andpr i ces .

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3. J. The tec hno l og ic al assessment shoul di n c l u d e an a n a l y s i s o f coa l cha ra c te r i s t i c s , an eng inee ring s tudy o f theappropr i a t e type and sca i e o f b r y u e t t ing and ca rb on l z i ng opera t1 6 n s ~and c a p i t a l a v a i l a b i l i t y .

The grade o f coal and i t s sul fu r and ash conte nts w i l l a f f e c t t h e t y p eo f b r i q u e t t i ng and c a r b o n i z a t i c n o p e r a t i o n t h a t i s a p pr o pr i a te .Therefore, a rep res en ta t ive sample of coal m u s t be obtaine d, shipped t oa la bo ra to ry r and assayed. Behavior o f t h e coal under b r i qu e t t i ng andcarbo n iaa t i on cond i t io ns mus t b e asc er t a i ne& e. g. , re1 a t i on hetweent i m e / t m p e r a t u r e c o n d i t i o n s and r es id ua l v o l a t i l e co nte ntr i g n i t a b i l t yvs. vo l a t i 1 B mat ter content, suppressi O D of r e s i dual sul fu r contentd u r i n g combustion, t h e op t ima l t ype of b i n d e r f o r b r i q u e t t e s t r e n g t h andd u r a b i l i t y, e tc .

I n add i t ion , an eng inee rfng s tudy i s necessa ry t o design th e type o fp l a n t a p p r o p r i a t e t o t h e coal and t h e s i z e of p l a nt t h a t i s a p pr o pr i at eto t h e market. Which of t h e many c a r b o n i z a t i o n and b r i q u e t t i n yprocesse s shou ld be used? Should off-gases be recycled or be used off-s i te? Shou? d by-product e l e c t r i c i t y by produced? kJill t h e c o r r e c tb i nder be re1 ab ly av ai l ab1 e? Where shoerl d t h e p1 ant be s i ed - - t ak i ngi n t o c o n s l d e r a t io n c oal s up pl yp l a b o r s up ply, a v a i l a b i l i t y o f u t i 1 t i e s ,t r a n s p o r t a t i on, and proximity t o markets. How 1 abor i tensfve shoul dt h e min i ng and br iq u e t t i ng/ca rbo n iz a t i on ope rat i ons be? What measuresare: needed t o pr ot ec t heal th, safety, and t h e e n v i r o m e n t ?

As p a r t a f t h e t e c h n o l o g i c a l assesmesrt, a survey o f t h e domesticc a p i t a l a v a i l a b l e i s also needed. It i s p o ss i bl e p as i n I n di a, t h a t .domestic equipment f o r t h e b r i q w e t t l n g and ca rbon iza t ion opera t ions w i l lbe adequate and cheape rr even t h o u g h not as durable as importedequipment, Th i s caw save on fo re i gn exchange cos ts. The amount ofq u i gment a v a i l ab1 e f o r b r i q u e t t i ng o p e r at i o n s o f d i ff er e nt scal es and1 eve1 L; o f technol oyy shoul d be determined.

Whll e only an examination of in di vi du al country c i curnstances cana s c e r ta i n t h i s l an i n t e e d i a t e 1we1 of t echnology i n t h e b r i q u e t t l n g /car bon iza t io n ope rat i on may prove best f o r f m p l me nt a t i on i n manyc o u n t r i e s . An in te rm ed ia te techno1 ogy approach t o produci ng t h esmoke1 e s s coal br iq ue t t es i s cheaper than t h e h igh techno1 ogy approach,whl l e a1 so prov l d ing t h e oppostuni ty for sane by-product recovery. Th ishe1 ps reduce pol 1 u t 1on prabl ems. Also, th e by-products m l g h t berec ycl ed i n t o t h e b r i q u e t t i n g /c ar bo ni z at io n o p e r a t i o n , as i n t he case o ft h e off-gases as a fuel , or sold, a s i n t h e case of t h e t a r s and 1f o r b o i l e r fu e l o r a s p h a l t s f o r road s u r f a c i n g ( i f a market f o r t hbe e s t a b l i s h e d l Art isanai manufacture a6 t h e m o k e l ess c o a l b r i q u e t t e si s a second p o s s i b i l i t y 9 i f no by-product recovery i s des i re d andp o l l u t i o n p r o b l a ~ s an be avoided. Such questlions need t o be answeredd u r i n g t h e t e c h no1 ag i ca l assessment.

4 . GOVFRNMENTPOLICYAMD-WNIN G ASSESSMENT. While coal c a r b o n i z a t i o nand b r i q u e t t i n g p r o v id e s a n ex ce l l e n t o p p o r t u n ~ t y f o r eventual controll a rge ly by t h e p r i v a t e sector, t h e r o l e s o f t h e host country governmentand A . E . D . i n s t a r t - u p o p e r a t i o n s m u s t b e assessed. For t h e host

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coun try government, t h i s in vo lv es assessi ngd i r e c t l y aimed a t c oa l b r i q u e t t i n g and o t h e rhave i n d i re ct impacts on th e new technology.

b o t h p ol d ci es t h a t a r egovernment pol i c i e s t h a t

I n g en er al , i t must be emphasized t h a t government acceptance o f t h e coalb r i q u e t t i n g t e c h n o l o g y I s i m p o r t a n t i f i t i s t o succeed. Not on ly i sgovernment backi ng necessary f o r promo tion o f t h e smokel ess coalb r i q u e t t i n g i t s e l f , b u t se em in gl y u n r e l a t e d government p r i o r i t i e s ca nhamper t h e success o f th e new technolo gy. For instance, i f r a i l c a r sa r e i n s h o r t s up pl y and c o al d el i v e r y t o e l e c t r i c p ower p l a n t s r e c e i v e sp r i o r i t y , a re 1 i a b l e s up pl y of b r i q u e t t e s w i l l be endangered by ani re gu l a r coal supply. Another exampl e o f an e x i s t i n g p o l i c y p r o v i d i n ga hindrance i s where a s t a t e - w n e d e l e c t r i c u t i 1 t y has monopoly r i g h t st o produce e l e c t r i c i t y . I n t h i s case b y-pr odu ct e l e c t r i c i t y from coalca rb on iz at io n would n o t be a1 lowed wit ho ut a pol ic y change.

The government r o l e a l s o must be assessed when i t owns r i s h t s t o t h ecoal, as i t does i n many develop ing coun tr ie s. Who w i l l do t he mining?T hi s, o f c ourse, I s a t a s k t h a t t h e p r i v a t e s e ct o r can t a k e onr b u t t h ei s sues o f whether i t should be done under concessions o r under j o i n tventures or by sane oth er arr ang eme its must be faced.

O t h e r d i r e c t a n d i n d i r e c t e f f e c t s w i l l r e su l t f r an cu r ren t gove rnmen tp r i c in g po l i c i e s , The ex ten t t o which smokeless coal b r iqu e t t e s w i l l beaccep ted i n th e marke t p l ace w i l l be af fe ct ed by such pol i c i e s a ss u b s i d i z a t i o n of a l t e r n a t i v e fuel:;, as i s t h e c ase f o r kerosene i nIndones ia and Peru. D i ff e r en t i a l t a xa t ion o r p r i ce co n t ro l s on ene rgyproducts woul d have s i m i la r ef fec ts . Whi le not genera l ly advised, thegovernment might reverse the ro? os j u s t men tioned by su bs id i z lngsmokeless coal pr ic es and promoting t h e i r use Over fuelwood.

I n addi t io n, th er e are a number of ac t ion s t h a t t he host government mayp l a n t o u nd er ta ke t o promote th e use of smokeless coal br iq ue tt esdi rec t l y. The government mi ght prcvi de in for mat ion on use t o potent la1users and f o m a t i on on p rod uct ion and markets t o po te nt i a1 producers.The government might support a m a l 1 p i l o t p l a nt o r i n te r me d ia t es i ze dd m o n s t r a t i on p l ant. T h i s wo ul d i n d i c a t e t h e v i a b i l i t y o f t h et echnology, i t s cos ts , and th e po ten t i a l marke t accep tance t oentrepreneurs. A1SO, the output woul d pr ov id e sarnpl es f o r markett e s t i n g , woul d demonstrate t o consuniers t h e advantages o f smokel ess coalb r ique t t e s r and cou l d es t a bl I s h a 'lseedl' market .

The government m igh t a ss i s t i n overcoming sane o f t he marke tu n c e r t a i n t i es f a ci n g pro duc ers by imp1 ementi ng such programs as 1oanguar ent i es and purchase agreements. Market un ce r t a i n t ie s can a f f e c t t heab11 i t y o f p r i v a t e i n d i v i d u a l s t o o bt ai n f i na nc i ng, and 1 oan guaranteesar e one method t o o f f s e t these obsta cles i n t h e market. This, however,wo ul d depend upon t h e s c a l e and r e l a t i v e c a p i t a l s c a r c i t i e s i n t h ecountry. An ad di ti on al way th e government mi gh t hel p i n overcomingmarke t un ce r t a in t i e s would be t o prov ide a ready market so t h a tp roduce r s wou ld be a ssured t h a t t hey can se l l a t