coal - energy for sustainable development final(16!04!2012)
TRANSCRIPT
Coal – Energy for Sustainable Development
Coal – Energy for Sustainable Development 2
Contents
3 Keymessages
4 Part1:Theglobalenergychallenge
10 Part2:Coalandcleanenergy
18 Part3:Coalandsustainabledevelopment
32 Part4:Timeforaction
34 Annex
36 Glossary
37 Furtherreading
38 WorldCoalAssociation
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Coalisthemostwidelyavailablefossilfuelresource.Itformsthebackboneoftheworld’selectricitysupply,providingmorethan40%ofourelectricityneeds.Itisalsoakeycomponentintheproductionofsteelandconcrete;vitalmaterialsinbuildingsustainablesocieties.
Energyiscriticaltosustainabledevelopment-tobuildingstrongercommunitieswithhospitalsandschools.Itsupportsbusinessandindustrysothattheycandeliversustainableemploymentandeconomicgrowth.
Acrosstheworldthereare1.3billionpeoplewithoutaccesstoelectricity.Internationalactionisneededtochangethis.Itispredictedthatby2035,unlessactionistaken,aroundonebillionpeoplewillstillbelivingwithoutelectricity.
Theworldneedsanenergyaccesstargettoprovideenergytothosewhoneeditmost.
Coalwillbethebedrockonwhichenergyaccessisbuilt.InternationalEnergyAgencyprojectionsshowthatitwillprovidemorethanhalfofthe‘on-grid’electricityneededtodeliverenergyforall.
Cleancoaltechnologies,suchasadvancedcoal-firedpowergenerationandcarboncaptureandstorage,canenabletheworld’scoalresourcetobeusedinlinewithenvironmentalandclimateobjectives.
Coalminingprovidesmorethansevenmillionjobsworldwideandin2010theindustryinvestedmorethanUS$7billionincapitalexpenditureindevelopingcountries.
Key messages
Forfurtherexplanationoftechnicaltermsusedinthisreport,seetheglossaryonpage36.
Coal – Energy for Sustainable Development 4
In1992thefirstRioConferencetookplace.Butaftertwentyyearsofactiontoaddressthechallengesofsustainabledevelopment,billionsofpeopleacrosstheworldstillliveinpoverty.Forsomany,livinginpovertymeanslivingwithunfulfilledpotential.Itisbroughtaboutbyalackofopportunity,ofeconomicandeducationaladvantagesandalackofaccesstoenergy.Povertyleadstopoorhealthoutcomesandprematuredeathbecausepeopleareunabletoaccesscleanwater,nutrition,healthcare,education,clothingandshelter.
Accesstoenergyisessentialtoaddressingtheproblemsthatcausepoverty.Afterfoodandshelter,energyisoneofthefundamentalsofmodernsociety.Withoutenergy,peoplecannotaccesstheopportunitiesprovidedbythemodernworld.
Alifelivedwithoutenergy,isalifelivedinpoverty.
Theworldmusttakeaction.Beforewecanmeetthemyriaddevelopmentchallengesfacedbythosemostinneed,weneedtoprovideaccesstoenergy.Growing,dynamiceconomiesareessentialprerequisitestoaddressingtheenvironmentalchallengesthatconfrontusthiscentury.
Global energy poverty and its impactTodaythereare1.3billionpeopleacrosstheglobewithoutaccesstoelectricityand2.7billionpeoplewhodon’thavecleancookingfacilities.Theproblemisspreadacrossthedevelopingworld,butitisparticularlysevereinsub-SaharanAfricaanddevelopingAsia,whichtogetheraccountfor95%ofpeopleinenergypoverty.
At89%,theDemocraticRepublicofCongohasthehighestpercentageofpopulationlackingaccesstoelectricity.
Withouttargetedglobalaction,theInternationalEnergyAgency(IEA)estimatesthatin2035therewillstillbeonebillionpeoplewithoutaccesstoelectricityand2.7billionwithoutaccesstocleancookingfuels.
Withoutacommitmenttoachieveuniversalenergyaccessithasbeenestimatedthatby2030,therewillbeanadditional1.5millionprematuredeathsperyearcausedbyhouseholdpollutionfromburningwoodanddungandthroughalackofbasicsanitationandhealthcare.Modernenergysourcesareessentialtomeetingthesechallenges.
Thereareexamplesthatshowtheimpactthatdedicatedactioncanhave.Chinadoubleditsenergyoutputfrom1990to2005andelectrificationincreasedtojustover99%.ThelevelofelectrificationinSouthAfricarosefrom36%in1994to75%attheendof2009.
Whiletherearemanypointsofcomparisonandcontrastbetweentheseexamples,itcannotbeignoredthatbothhavebenefitedfromeaseofaccesstolargereservesofcoal(seefigure2).
Part 1Theglobalenergychallenge
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However,thechallengeremainsimmense.Thelatentdemandforelectricityishuge.Anestimated400millionpeopleinIndiastilllackaccesstoelectricity.By2030thisisonlyexpectedtofallto300million.
Beyondhouseholdsandindividuals,energyaccessisalsocriticaltothebroadereconomyandsociety.
Businessesandindustriesaremajorconsumersofelectricity.Globally,industrialuseofelectricityaccountedforaround42%ofconsumptionin2008.Economicgrowththroughtheexpansionofbusinessandindustrywillbetheonlywaythatpovertycanbeeradicatedindevelopingcountries.Businessandindustryneedsreliablebaseloadelectricityinordertoexpand.Inthedevelopingworld,economic
expansionwillprovidesecureemployment.Withoutthis,hundredsofmillionsofpeoplewillremaininpoverty,particularlyinurbanareas.
Otheressentialsocialservicesarealsoheavilyreliantonamodern,reliableelectricitysupply.Hospitalsandschoolscannotfunctioneffectivelywithoutaccesstoelectricityandinmanydevelopingcountriesthelackofelectricitycompoundstheproblemsofdiseaseandpooreducation.
Thisiswhyimprovingaccesstomodernenergyinthedevelopingworldissoimportant.Theworldneedstoadopttargetsforenergyaccessthatwillsupportresidential,industrialandsocialaccesstoelectricalservices.
Without targeted global action, the IEA estimates that in 2035 there will still be one billion people without access to electricity and 2.7 billion without access to clean cooking fuels.
Figure 2. Electrification and coal reserves
Country Electrification Coal reserves % coal from rate (2009) (million tonnes) electricity (2008)
China 99.4% 114,500 79%SouthAfrica 75% 30,156 93%
Figure 1. Global energy poverty
Source: International Energy Agency, World Energy Outlook 2011
Coal – Energy for Sustainable Development 6
Energy access targetsTheworldcurrentlylacksaninternationallyagreedglobaltargettoimproveaccesstoelectricity.Thetargetsthatdoexistlackambition.
TheIEA’sWorldEnergyOutlook2011providesadefinitionofwhatitsownenergyaccesstargetswoulddeliverintermsofelectricityfordomesticuse.Inruralareastheirtargetswouldsupport“useofafloorfan,amobilephone,andtwocompactfluorescentlightbulbsforaboutfivehoursaday.Inurbanareas,consumptionmightalsoincludeanefficientrefrigerator,asecondmobilephoneperhouseholdandanotherappliance,suchasasmalltelevisionoracomputer.”Critically,thedefinitionalsostates“someothercategoriesareexcluded,suchaselectricityaccesstobusiness.”Otherinternationalagenciesusesimilardefinitions.
Thetargetsalsofocusontheneedtoprovidecleancookingfuels.Thisisvitallyimportantbecausetheburningofwoodanddungreducesairqualityinthehome.Itisalsoamajorcauseofrespiratorydisease.Thedailyforageforfuelsofthistypecanleavepeoplephysicallyandemotionallydepletedandwithlittlesparetimetodevotetotheireconomicandsocialadvancement.Alongsideprovidingsmall-scale,off-gridrenewablepowersources,providingcleancookingfuelswillbeimportantintheshorttomediumterminaddressingthehealthchallengescausedbyenergypoverty.However,targetsbasedsolelyonprovidingfortheseminimalrequirementsignorethetruescaleofeffortneededtoeradicatepoverty–andtheenergyneededtomatchthatambition.
Arecentstudy1consideredthecurrentsituationinsub-SaharanAfrica.Itlookedattheexpansionofelectricitythatwouldbeneededonaneconomy-widebasistocomprehensivelyaddressenergyaccess.Toreachwhatthestudydescribedas“moderateaccess”toenergy,whereelectricitygenerationcapacityisaround200-400MWpermillionofpopulation,theregionwouldneedatotalofaround374GWofinstalledcapacity.That’sabout12timesthecapacitythatexistsinsub-SaharanAfricatoday.
Toachievethatlevelofcapacity,thestudyestimatedthatanannualgrowthrateinelectricityofaround13%wouldbeneededforthenext20years.Inthepast20yearstheaveragehasbeenonly1.7%.Thisdemonstratesthesignificantchallengefacedinprovidingagenuinelevelofenergyaccess.
Toconsiderthisissueincontext,SouthAfricacurrentlyhasaround800MWofinstalledcapacitypermillionpeople,andyetthiscountrystillfacesitsownsignificantchallengesinprovidingenergytoitspopulation.Indiacurrentlyhasaninstalledcapacityofaround130MWpermillionpeoplewhileintheUnitedStatesandEuropethefiguresarearound2826MWand1733MWrespectively.
ThescaleofthatchallengeisshowninFigure3.Currentdebatesaboutprovidinguniversalenergyaccessoftenassumethataccessbringspeopleindevelopingcountriestoalevelatleastbroadlycomparabletothatwhichexistsinthedevelopedworld.Butinreality,eventoprovidebasicenergyaccess,inlinewithamiddleincomecountry,wouldrequireadramatictransformationoftheelectricitysupplyinthesecountries.
Achieving energy accessDespitethemanychallenges,thereisnothingpreventingtheprovisionofenergytothosewhocurrentlylackit.Withambitiousactionthesechallengescanbeovercome.Thetechnologyalreadyexists.Nationalelectricitygridsareinplaceandcanbefurtherdevelopedtoensureelectricityisdispersedacrosscountries.However,significantinvestmentinelectricitygridsisrequiredinmanyoftheleastdevelopedcountries.Stronggridstructuresareessentialtoevenoutpeaksandtroughsinthegenerationofrenewableelectricityandtheycanveryeffectivelydistributecentralisedbaseloadelectricity.
Allenergysourceshavesomeroletoplayinfeedingthosegrids,includingnuclear,hydroandtheprovisionofrenewableenergy.However,baseloadpowergenerationthroughtheuseoffossilfuels,andespeciallywithcoal,istheonlywaytoprovideaffordable,safeandreliableelectricityatthescale
1Bazilian,etal,“Energyaccessscenariosto2030forthepowersectorinsub-SaharanAfrica”
The world currently lacks an agreed global target to improve access to electricity. The targets that do exist lack ambition.
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thatisneededtoachievegenuineaccesstomodernelectricityservices.Coalis,andwillcontinuetobe,thebackboneofglobalelectricitygeneration.Itwillbefundamentaltoexpandinggeneratingcapacityinmanydevelopingcountries.
Alongwiththeambitiontoachieverealenergyaccessinthedevelopingworld,threeelementsarenecessarytohelprealisethisvision:
1 Theright policy frameworksmustbeputinplace,bothonanationalandinternationalbasis,tosupporteffectiveenergyinstitutionsandbusinessmodelsthatsupportthedeploymentofacomprehensiveenergyinfrastructurewhereitisneededmost.
2 Theseframeworkswillencourage access tofinancefromallsources,publicandprivate,domesticandinternational.Thiswillprovidetherightlevelofinvestmenttobuildtheenergyinfrastructurethatissobadlyneeded.
3 Itmustberecognisedthat all sources of energy are necessarytomeetthevastpotentialdemandforelectricity.Itisimportanttounderstandthatdifferentsourcesofenergywillsuitdifferentcountriesanddifferentenvironments.Toensurethatenergyreachesthosewhoneeditmost,therecannotbeapoliticalpreferenceforonetechnologyoveranother.Thedecisionmustbebasedonwhatismosteffectiveinmeetingtheenergyneed.
Figure 3. Scenarios and projections for installed power capacity in sub-Saharan Africa (excluding the Republic of South Africa) 2010-2030
Source: Bazilian, et al, “Energy access scenarios to 2030 for the power sector in sub-Saharan Africa”
Coal – Energy for Sustainable Development 8
The role of coal in providing energy accessCoalresourcesexistinmanydevelopingcountries,includingthosewithsignificantenergychallenges.Coalwillthereforeplayamajorroleinsupportingthedevelopmentofbase-loadelectricitywhereitismostneeded.Coal-firedelectricitywillbefedintonationalgridsanditwillbringenergyaccesstomillionsandsupporteconomicgrowthinthedevelopingworld.
TheWorldEnergyOutlook2011highlightsthat“coalaloneaccountsformorethan50%ofthetotalon-gridadditions”requiredtoachievetheIEA’sEnergyforAllcase.Thisclearlydemonstratescoal’sfundamentalroleinsupportingmodernbaseloadelectricity.Manycountrieswithelectricitychallengesarealsoabletoaccesscoalresourcesinanaffordableandsecurewaytofuelthegrowthintheirelectricitysupply.Asnationsdevelop,theyseeksecure,reliableandaffordablesourcesofenergytostrengthenandbuildtheireconomies–coalisalogicalchoiceinmanyofthesecountriesbecauseitiswidelyavailable,safe,reliableandrelativelylowcost.ThishasbeendemonstratedinVietnam,inChina,inSouthAfrica,andmanyothercountries.Manydevelopingcountrieshavesignificant,untappedcoalreserves.
Thefactthatcoalisexpectedtoaccountformorethan50%oftotalon-gridadditionsdemonstratescoal’scontinuingroleasthebackboneofourglobalelectricitysupply.Coalmetaroundhalfoftheincrementalgrowthinglobalprimaryenergydemandinthedecade2000-2010.Thesefiguresdemonstratecoal’scentralroleinsupportingincreasingelectricitydemandinthefuture,particularlyinaworldwheremorethanabillionpeopleliveinenergypoverty.Iftheworldistobeambitiousbeyondcurrentenergyaccesstargets,thencoalwillbeneededtomeetasignificantproportionofthatlatentdemand.
Thereisahugeopportunitytoensurethatmodernandcleancoaltechnologiescanbepart
ofaddressingthechallengeofenergypoverty.Nationalandinternationalpolicyframeworksandfinancingmechanismsmustsupportthedeploymentofthemostefficientandcleanestcoaltechnology.Iftheseframeworksarenotinplace,thenlessefficienttechnologieswithgreaterenvironmentalconsequencesarelikelytoprovemoreattractiveonacostbasisthanmoreexpensivebutalsomoreefficientandcleanertechnologies.
Energy and climate changeInthefaceofglobalactiontoaddressclimatechange,ithasbeenarguedthattheexpansionofenergyaccesscouldthreateninternationalclimateambitionswhichaimtocapatmosphericCO2at450partspermillionandkeepglobalwarminglessthantwodegreesabovepre-industriallevels.Developingcountrieshavebeenconcernedthatrequiringthemtoreduceemissionswillthreatenachievementoftheirlegitimatedevelopmentpriorities.
However,aneffectiveandsustainableclimateresponsemustintegrateenvironmentalaimswithenergysecurityandeconomicdevelopment.Theworld’sleastdevelopedcountriesneedaccesstolowcostenergy,buttheyarealsothemostvulnerabletotheimpactsofpoliciesaimedatreducinggreenhousegasemissions.
Asdemandforenergyincreases,affordableandsustainablesourcesofenergyareessentialtoaddressingthechallengeofreducinggreenhousegasemissionswhilstachievingaccesstoenergy.Withoutfirstaddressingthechallengeofpoverty,developingeconomieswillnothavethecapacitytofocustheirattentiononreducingtheirgreenhousegasemissions.
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Whileaddressingclimateandenergychallengestogetherseemscontradictorytosome,therealityisthattheymustbeconsideredasintegratedpriorities.
Importantly,energyneedscanbemetwithoutimpactingclimateambitions.TheWorldEnergyOutlook2011highlightsthatachievingtheEnergyforAllcasewouldonlyincreaseCO2emissionsby0.8%whileavoidingtheprematuredeathsof1.5millionpeople.Ashasbeennotedabove,achievingtheEnergyforAllcaseincludessignificantcoal-firedadditionstonationalelectricitygrids.Sothechoiceofenergysourcesforbringingelectricitytothosewhoneeditwillmakealmostnoimpactonclimateaction.Thismeansthatinrealitythereisnoclimate-basedreasontolimitthefuelsfromwhichenergycanbesourced.Renewablesourceshavealargeroletoplaybutthereisnoclimate-basedreasontoweighenergyaccesseffortsstronglytowardsrenewableenergysources.
Thefocusneedstobeonensuringthatenergyisdeliveredtothosewhoneedit.Ratherthanfocussingonparticularlow-carbonsourcesofenergy,theyshouldallbemadeavailable,leavingnationalgovernmentstochoosewhatismostsuitablefortheircircumstances.
Coal – Energy for Sustainable Development 10
Coalisthebackboneofmodernelectricity.Coalcurrentlysuppliesaround30%ofprimaryenergyand41%ofglobalelectricitygeneration.Coaluseisforecasttoriseover50%to2030,withdevelopingcountriesresponsiblefor97%ofthisincrease,primarilytomeetimprovedelectrificationrates.
Between2000and2010itisestimatedthatcoalmetaroundhalfofglobalincrementalenergydemand(seefigure4).Despitetherapiddeploymentofrenewableenergytechnologies,particularlyinthecontextofdebatesaboutclimatechange,ithasbeencoalthathasaccountedforthelargestincreaseinenergydemandamongtherangeofenergysources.Thegrowthincoalusage,inbothvolumeandpercentageterms,wasgreaterthananyotherfuel.
Coalhasmetthissignificantgrowthinenergydemandbecauseofitsstatusasareliable,widelydistributedandaffordablefuel.Coalisalsotheleastsubsidisedofallfuelsources.AccordingtotheIEA,“…consumptionsubsidiestocoalworldwidearesmallanddiminishing,comparedwiththosetooilproducts,naturalgasandelectricity,accountingforonly0.7%ofthesesubsidies”.
Coalwillalsoplayamajorroleasacomplementtorenewableenergysources.Itwillbeoneofthekeysourcesofenergytoaddressgapsinwindandsolarpoweredelectricity,bothofwhichincluderisksofintermittentsupply.
TheWorldBankrecognisesthesignificantrolethatcoalenergyplaysinsecuringenergysupplies,especiallyindevelopingeconomies.Thiswasdemonstratedbythedecisionin2010toprovidefundingforthedevelopmentoftheMedupipowerstationinSouthAfricawherethePresidentoftheWorldBankstatedthat,“Coalisstilltheleast-cost,mostviable,andtechnicallyfeasibleoptionformeetingthebaseloadpowerneedsrequiredbyAfrica’slargesteconomy”.
ThisisalsorecognisedbytheIEA.InitsWorldEnergyOutlook2011,ithighlightedthatcoalwillplayanimportantroleinunderpinningtheincreaseinpowergenerationthatisneededtoprovideelectricitytothe1.3billionpeoplethatcurrentlydonothaveit,stating,“morethanhalfofthe…increaseinon-gridelectricitygenerationcapacityisexpectedtobecoal-fired.”
Part 2Coalandcleanenergy
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The coal resourceCoalisthemostwidelyavailablefossilfuelenergyresource.Unlikegasandoilitiswidelydistributed,bothgeographicallyandintermsofresourceownership.Itsabundanceprovidesenergysecuritytomanycountriesbecauseitssupplywilllastsignificantlylongerthangasoroil.Itispredictedthatcoalwillcontinuetoplayaverysignificantroleinworldprimaryenergydemandwellintothefuture.
Ithasbeenestimatedthatthereareover860billiontonnesofprovencoalreservesworldwide.Thismeansthatthereisenoughcoaltolastusatleast118yearsatcurrentratesofconsumption.Incontrast,provenoilandgasreservesareequivalenttoaround46and57yearsatcurrentconsumptionlevels.However,reserveestimatesvary.Worldwide,potentialcoalresourcesdwarfprovenreservesandmanyanalystsbelievethatcoalcouldlastconsiderablylonger.Somedeposits
areestimatedtohaveasmuchas400yearsofproductionremainingandnewtechnologiesforutilisingcoalresources,suchasundergroundcoalgasification,arelikelytoboostcoal’sfutureroleinenergysupplyevenfurther.
Coalreservesareavailableinalmosteverycountryworldwide,withrecoverablereservesinaround70countries.ThelargestreservesareintheUSA,Russia,ChinaandIndia.
Importantly,manycountrieswithsignificantenergypovertychallengesalsohavesignificantcoalreserves.Theabilitytoutilisedomesticcoalreservestoaddressproblemsofenergyaccessreducesrelianceonimportedenergy,particularlyoilandgaswhichareoftensourcedfromunreliableandunstablemarkets.Utilisationofcoaltocomplementrenewableenergysources,particularlywind,reducestheriskofanintermittentsupply.
Figure 4. Incremental world primary energy demand by fuel, 2000-2010
Source: IEA, WEO 2011
Coal – Energy for Sustainable Development 12
ManyAfricancountrieshavecoalreserves;however,SouthAfricahasbyfarthemostabundantreservesandhasalreadydevelopedasignificantcoalindustry.Furthermore,anumberofsouthernAfricanstatesbelievetheyhavesignificantcoalreservesthathavenotyetbeenproperlyassessed.ThiscouldsignificantlyincreasethepotentialroleforcoalintheAfricanregion.
Figure 5. Proved recoverable reserves of coal in sub-Saharan Africa at end-2008 (million tonnes)
Country Total reservesBotswana 40CentralAfricanRepublic 3Congo(DemocraticRepublic) 88Malawi 2Mozambique 212Niger 70Nigeria 190SouthAfrica 30,156Swaziland 144Tanzania 200Zambia 10Zimbabwe 502
Source: World Energy Council, Survey of Energy Resources 2010
Whilethereservesinothersub-SaharancountriesaredwarfedbythoseofSouthAfrica,manyhavesizeabledepositsthatcouldsupplysecureandreliableenergytohelpgrowtheirdomesticeconomies.
SouthAfricaobtainsover90%ofitselectricityfromcoalandhasdevelopedextensivecoalconversionprojects,especiallycoal-to-liquids(CTL).Currentlyaround30%ofSouthAfrica’sgasolineanddieselneedsareproducedfromindigenouscoal.
SouthAfrica’sconsiderablecoalreservesalsomakeitakeymemberoftheSouthernAfricanPowerPool,whichestablishesacommonpowergridandacommonpowermarketacrosscountriesintheSouthernAfricanDevelopmentCommunity.
TheseresourcesallowSouthAfricatoexportelectricitytoanumberofcountriesinthearea–includingBotswanaandNamibia–bothcountrieswhereoverhalfthepopulationhasnoelectricity.ThismeansSouthAfricancoalcouldplayasignificantroleinexpandingenergyaccessintheregion.
InAsia,coalreservesaremorewidelydispersed.China,IndiaandKazakhstanallhavereservesgreaterthanSouthAfricaandafurtherfivecountrieshavewelloverabilliontonnesofavailablereserves.
Figure 6. Proved recoverable reserves of coal in Asia at end-2008 (million tonnes)
Country Total reservesAfghanistan 66Armenia 163Bangladesh 293China 114,500Georgia 201India 60,600Indonesia 5529Japan 350Kazakhstan 33,600Korea(Democratic 600People’sRepublic)Korea(Republic) 126Kyrgyzstan 812Laos 503Malaysia 4Mongolia 2520Myanmar(Burma) 2Nepal 1Pakistan 2070Philippines 316Taiwan,China/ChineseTaipei 1Tajikistan 375Thailand 1239Turkey 2343Uzbekistan 1900Vietnam 150
Source: World Energy Council, Survey of Energy Resources 2010
South African coal could play a significant role in expanding energy access in the region.
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Theimportanceofcoaltoelectricityworldwideissettocontinue.IntheIEA’scentralNewPoliciesScenario,coalisstillexpectedtoprovidearound33%ofglobalelectricitygenerationin2030.However,thatscenariorequiresimplementationofallpoliciescurrentlyplannedbygovernmentsandthereforecomeswithconsiderableuncertainty.ItalsodoesnotincludetheverysignificantincreasesinelectricityneededtoreachtargetsbeyondtheIEA’sEnergyforAllscenariotoprovideevengreaterelectricityinthedevelopingworld–whichwilllikelyseeanevengreaterroleforcoalinsecuringthoseenergysupplies.Itisthoughtthatthisscenariowouldbringcoal’sshareinfutureelectricitygenerationmoreinlinewiththeIEA’sCurrentPoliciesScenarioforecastfor2035ofaround43%.
Tomeetthehugeglobaldemandforenergy,allenergysourceswillbeneeded.Differentsourcesofenergywillsuitdifferentcountriesanddifferentenvironments.Dependingontheavailabilityofnaturalresources,adecisionmaybetakenbetweencoalandgasasthemostviablemeansofpoweringbaseloadelectricity.Inmanycasesbothwillhavearoletoplay.Nucleartechnologymaybeavailableinsomecountriesandnotothers.Renewableenergywillhaveaparticularroletoplayinprovidingoff-gridelectricityandinmeetingpeakdemand.Incountrieswherethereisasignificantcoalresource,itislikelytobethepreferredfuelforsupplyingbaseloadelectricity.Inmanycasesthiswillbeamatterofaffordabilityandsecurity.
Energy efficiencyEfficiencyincoal-firedpowergenerationwillplayanimportantroleinthefutureproductionofelectricity.ThisisparticularlythecasewiththepotentialforhighefficiencypowergenerationtoreduceCO2emissions.
Manyofthecountrieswithsignificantcoalreservesalsohavesubstantialcoalproduction.However,thereareanumberofcountrieswhosecoalreservesareyettobeutilisedatalargescale.ThisprovidesbotheconomicopportunityforcountriessuchasIndonesia,MongoliaandPakistan,amongstmanyothers,tofurtherdeveloptheircoalextractionindustryandagreatpotentialforasecureandaffordabledomesticenergysupplyusingtheirindigenouscoalresource.
Coalminingplaysasignificantroleinmanynationaleconomies.Developingeconomiesrankhighlyamongtheworld’smajorcoalproducingnations.InthecasesofChina,India,SouthAfricaandKazakhstanmuchofthisisutilisedfordomesticelectricitygeneration.However,thesecountriesalsohavelargecoalexportmarketswhichcreatevaluableforeigninvestment.ColombiaandIndonesiabothearnconsiderableexportrevenuesfromcoalproductionindustriesthatareheavilyexport-focused.
Figure 7. Top Ten Hard Coal Producers (2010e)PRChina 3162Mt Russia 248MtUSA 932Mt Indonesia 173MtIndia 538Mt Kazakhstan 105MtAustralia 353Mt Poland 77MtSouthAfrica 255Mt Colombia 74Mt
Source: IEA 2011
Coalplaysavitalroleinelectricitygenerationworldwide.Coal-firedpowerplantscurrentlyfuel41%ofglobalelectricity.Insomecountries,coalfuelsanevenhigherpercentageofelectricity.
Figure 8. Coal in electricity generationSouthAfrica 93% Israel 63%Poland 92% CzechRep 60%PRChina 79% Morocco 55%Australia 77% Greece 52%Kazakhstan 70% USA 49%India 69% Germany 46%
Source: IEA 2010
Coal – Energy for Sustainable Development 14
Improvingefficiencylevelsincreasestheamountofenergythatcanbeextractedfromasingleunitofcoal.Increasesintheefficiencyofelectricitygenerationareessentialintacklingclimatechange.Asinglepercentagepointimprovementintheefficiencyofaconventionalpulverisedcoalcombustionplantresultsina2-3%reductioninCO2emissions.Highlyefficientmodernsupercriticalandultra-supercriticalcoalplantsemitalmost40%lessCO2thansubcriticalplants.
Efficiencyimprovementsincludethemostcost-effectiveandshortestleadtimeactionsforreducingemissionsfromcoal-firedelectricity.Thisisparticularlythecaseindevelopingcountriesandeconomiesintransitionwhereexistingplantefficienciesaregenerallylowerandcoaluseinelectricitygenerationisincreasing.
Theaverageglobalefficiencyofcoal-firedplantsiscurrently28%comparedto45%forthemostefficientplants(seefigure9).Aprogrammeofrepoweringexistingcoal-firedplantstoimprovetheirefficiency,coupledwiththenewerandmoreefficientplantsbeingbuilt,willgeneratesignificantCO2reductionsofaround1.8gigatonnesannually.Althoughthedeploymentofnew,highlyefficientplantsissubjecttolocalconstraints,suchasambientenvironmentalconditionsandcoalquality,deployingthemostefficientplantpossibleiscriticaltoenabletheseplantstoberetrofittedwithCCS(carboncaptureandstorage)inthefuture.
Improvingtheefficiencyoftheoldestandmostinefficientcoal-firedplantswouldreduceCO2emissionsfromcoalusebyalmost25%,representinga6%reductioninglobalCO2emissions.Bywayofcomparison,undertheKyotoProtocol,partieshavecommittedtoreducetheiremissionsby“atleast5%”.Theseemissionreductionscanbeachievedbythereplacementofplantsthatare<300MWcapacityandolderthan25years,withlargerandmarkedlymoreefficientplantsand,wheretechnicallyandeconomicallyappropriate,thereplacementorrepoweringoflargerinefficientplantswithhigh-efficiencyplantsof>40%.
TheroleofincreasedefficiencyasameanstoCO2mitigationisoftenoverlookedindiscussionsaboutclimateandenergy.AsisnotedinWorldEnergyOutlook2011(WEO),“Iftheaverageefficiencyofallcoal-firedpowerplantsweretobefivepercentagepointshigherthanintheNewPoliciesScenarioin2035,suchanacceleratedmoveawayfromtheleastefficientcombustiontechnologieswouldlowerCO2emissionsfromthepowersectorby8%andreducelocalairpollution”.Itisalsoimportanttonotethatthecostofavoidedemissionsfrommoreefficientcoal-basedgenerationcanbeverylow,requiringrelativelysmalladditionalinvestments.Thisisespeciallythecasewhencomparedtothecostofavoidedemissionsthroughdeploymentofrenewablesandnuclear.
Carbon capture and storageCarboncaptureandstoragetechnologywillbeakeytechnologytoreduceCO2emissions,notonlyfromcoal,butalsonaturalgasandindustrialsources.FiguresintheIEA’sWEO2011reportestimatethepotentialforCCStocontribute22%ofglobalCO2mitigationthroughto2035.Further
Figure 9. Reducing emissions through efficiency improvements
Source: IEA “Focus on Clean Coal” (2006)
Note: 1% increase in efficiency = 2-3% decrease in emissions
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analysisbytheIEAintheirEnergyTechnologyPerspectives2010reportalsoshowsthatclimatechangeactionwillcostanadditionalUS$4.7trillionwithoutCCS.
Likeallnewlowemissionenergytechnologies,CCSwillcostsignificantlymorethanconventionaltechnologyandrequiresextendeddevelopmenttime.Whileavailableonacomponent-by-componentbasis,CCShasnotyetbeencommerciallyprovenonanintegratedbasisoratthescalerequiredtomeetglobalgreenhousegasconcentrationtargets.Oncedemonstrated,CCSwillenablecountriestorelyonsecureandaffordableenergysourcessuchascoalwithoutcompromisingtheirenvironmentalambitions.
Furtherinvestmentisneededtofast-trackCCSdemonstrationandallowforthenecessarycostreductionsthatwillsupportthefuturelargescaledeploymentofCCS.AlongwiththesignificantinvestmentsalreadybeingmadebygovernmentsindevelopedeconomiesandChina,animportantaspectofCCSdeploymentindevelopingcountries
willbetherecentinclusionofCCSintheCleanDevelopmentMechanism;animportantstepforitsinclusioninotherfutureclimatefinancinginstruments,suchastheGreenClimateFund.
Utilising captured CO2 to secure energy suppliesAnothertechnologyofgrowingimportanceinsecuringnationalenergysuppliesiscarboncapture,utilisationandstorage(CCUS).Itprovidesapathwaytotwoimportantenergygoalsofmanycountries–producingreliableandaffordableelectricityfromcoalpowerplantswhilereducinggreenhousegasemissionsandproducingmoreoiltomeetgrowingdemandandenhancenationalsecurity.UtilisingtheCO2fromtheconsumptionoffossilfuelsisacrucialstepineconomicallyreducinggreenhousegasemissions.
Abouttwo-thirdsofareservoir’soriginal-oil-in-placeremainsuntappedafterprimaryandsecondaryoperationsbecauseitistoodifficultorexpensivetoextract.Withevolvingtechnology,however,significantlymoreofthereservoir’sremainingoilcanbeproduced.InjectingCO2
Figure 10. Key technologies for reducing CO2 emissions
Source: IEA Energy Technology Perspectives 2010
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undergroundtoproducesuch‘stranded’oilisknownasenhancedoilrecovery(EOR).Over110projectsusingthisestablishedtechnologyarecurrentlyproducingabout280,000barrelsofoilperdayintheUnitedStatesaloneandthetechnologyisalsobeingdevelopedinmanyotheroil-producingnations.
EORwouldsupportthedeploymentofCCSandcreatearevenuestreamforCCSprojectsastheCO2capturedbecomesaneconomicresource.Deploymentofthistechnologyatagloballevelrequiresfurtherinvestigation.However,earlystudiesdemonstratethatthereissignificantcapacityforstorageofCO2inunder-utilisedoilfields.
TheprocessofEORwillstimulateeconomicgrowthandcreatejobsnotonlyinlocalareas,butregionallyandnationallyaswell.Thecaptureofformer“waste”CO2willcreateavaluableresourcethatcanbeusedforEORwheresuppliesofCO2arenowinadequate.Further,asUniversityofTexasresearchershavepointedout,utilisationofgreateramountsofCO2forEORwillprovideacommodityvaluethatcanbeusedtoreducethecostofcaptureandthefinancialburdenonpowerconsumerssuchasfamiliesandbusinesses.
Withhigheroilpricespredictedforthefuture,securingandenhancingoilsuppliesshouldbeamajorinternationalpriority.TheIEAhasindicatedthattheworldneedstoinvestoverUS$10trillioninoilinfrastructureoverthenexttwodecades,EORshouldbeoneofthetechnologiesutilisedtoimproveglobaloilsupplies.
Clean fuels from coalInadditiontoimprovementsintheefficiencyofcoal-firedpowerstationsandthedeploymentofCCSforelectricitygeneration,theworld’ssignificantcoalresourcescanalsobedeployedtosupportotherenergyneeds.
Coal to liquidsConvertingcoaltoaliquidfuel–aprocessreferredtoascoalliquefaction–allowscoaltobeutilisedasanalternativetooil.
CTLisparticularlysuitedtocountriesthatrelyheavilyonoilimportsandhavelargedomesticreservesofcoal.
SouthAfricahasbeenproducingcoal-derivedfuelssince1955andhastheonlycommercialcoaltoliquidsindustryinoperationtoday.NotonlyareCTLfuelsusedincarsandothervehicles,butSouthAfricanenergycompanySasol’sCTLfuelsalsohaveapprovaltobeusedincommercialjets.Currentlyaround30%ofthecountry’sgasolineanddieselneedsareproducedfromindigenouscoal.ThetotalcapacityoftheSouthAfricanCTLoperationsstandsinexcessof160,000bbl/d.
Fuelsproducedfromcoalcanalsobeusedoutsidethetransportationsector.Inmanydevelopingcountries,healthimpactsandlocalairqualityconcernshavedrivencallsfortheuseofcleancookingfuels.Replacingtraditionalbiomassorsolidfuelswithliquefiedpetroleumgas(LPG)hasbeenthefocusofinternationalaidprogrammes.LPG,however,isanoilderivative–andisthusaffectedbytheexpenseandpricevolatilityofcrudeoil.Coal-deriveddimethylether(DME)isreceivingparticularattentiontodayasitisaproductthatholdsoutgreatpromiseasadomesticfuel.DMEisnon-carcinogenicandnon-toxictohandleandgenerateslesscarbonmonoxideandhydrocarbonairpollutionthanLPG.
Underground coal gasificationUndergroundcoalgasification(UCG)isamethodofconvertingunworkedcoal-coalstillintheground-intoacombustiblegaswhichcanbeusedforindustrialheating,powergenerationorthemanufactureofhydrogen,syntheticnaturalgasordieselfuel.
Coal-derived dimethyl ether (DME) is receiving particular attention today as it is a product that holds out great promise as a domestic fuel.
17
InthelastfewyearstherehasbeensignificantrenewedinterestinUCGasthetechnologyhasmovedforwardconsiderably.Chinahasabout30projectsusingundergroundcoalgasificationindifferentphasesofpreparation.Indiaplanstouseundergroundgasificationtoaccessanestimated350billiontonnesofcoal.
SouthAfricancompaniesSasolandEskombothhaveUCGpilotfacilitiesthathavebeenoperatingforsometime,givingvaluableinformationanddata.InAustralia,LincEnergyhastheChinchillasite,whichfirststartedoperatingin2000.Demonstrationprojectsandstudiesarealsocurrentlyunderwayinanumberofcountries,includingtheUSA,WesternandEasternEurope,Japan,Indonesia,Vietnam,India,AustraliaandChina,withworkbeingcarriedoutbybothindustryandresearchestablishments.
Figure 11. How underground coal gasification works
Source: UCG Association
Coal – Energy for Sustainable Development 18
Inadditiontoitsdirectroleasanenergyresource,coalplaysasignificantglobalroleinsustainabledevelopment.
Coalminingisacriticalcontributortomanyeconomies.Fromprovidingemployment,exportandroyaltyrevenuesthroughtolocalservicesandthedevelopmentofinfrastructure,coalminingmakesasubstantialcontributiontoimprovingthelivelihoodsofmany.Thisisespeciallytrueindevelopingcountrieswherecoalminingmakesamajorcontributiontonationaleconomiesallowingthemtogrowstrongerandaddressthechallengesofpovertyanddevelopment.
Coalisalsoakeycomponentofimportantindustrialprocessessuchassteelandcementmanufacturing–bothofwhicharecentraltobuildingtheessentialinfrastructureofgrowingeconomies.
Economic benefits of miningCoaldirectlyprovidesmorethansevenmillionjobsworldwideandsupportsmanymoremillions.Coalproductionisthekeyeconomicactivityinmanycommunities.In2010thecoalindustryinvestedmorethanUS$7billionincapitalexpendituresindevelopingcountries.
Thepresenceofcoalminingsupportseconomiesinmanyways.Atthemostbasiclevelcoalminingprovidesemploymentforlocalcommunities.Theseemployersofteninvestinimprovingtheskillsoftheirworkforce–skillsthatcanbetransferredtootheremployersandotherindustries.Employmentprovidedbycoalminingdoesnotonlybenefitthemenandwomenemployedatthemineandtheirfamilies.Thesejobssupportthewidercommunitywhentheemployees’incomeisspentongoodsandservices.
Coalminingoftenoccursinruralandremoteareasrequiringsignificantinfrastructuredevelopment-particularlythedevelopmentoftransportationlinkssuchasroadandrail.Miningoftenbringsincreasesinotherinfrastructureservicessuchaselectricity.Improvedinfrastructureduetominingactivitycanalsosupportbroadereconomicdevelopmentwithintheregion.
Miningoperationsalsobringrevenuestogovernments.Companiespaytaxesatboththelocalandnationallevelsandcancontributeroyaltieswhichhelpgovernmentsfundotherservices,suchashealth,education,welfareandsecurity.Incaseswherecoalissurplustodomesticenergyneeds,coalproducedisexportedtoothercountries,earningvaluableexportincomeandsupportingnationalforeignexchangereserves.Thesebenefitscanbecriticaltooftenfragiledevelopingeconomies.
Manycompaniesalsolooktoinvestinthecommunitieswithinwhichtheyoperate-wellbeyondtheneedsoftheirminingoperations.Therearemanyexamplesofcoalminingcompaniesmakingsizeableinvestmentsinhealthandeducationservicesintheirlocalcommunities.Someoftheseareconsideredonpages20–27.
South AfricaCoalisakeycontributortoSouthAfrica’seconomy.Whiletherestofsub-SaharanAfricalaboursunderanelectrificationrateofonlyabout10%,
Part 3Coalandsustainabledevelopment
19
SouthAfricahasmanagedtomorethandoubleitselectrificationrateinjustoveradecadeto75%onthebackofapowersectorfuelledmorethan90%bycoal.TheeconomicandsocialcontrastsbetweenSouthAfricaandmanyofitsneighboursareobvious.WhilecoaladdressesthedomesticelectrificationchallengesinSouthAfrica,morethanaquarterofcoalminedinthecountryisexported,mostlythroughtheRichardsBayCoalTerminal.Afterplatinumandgold,coalisSouthAfrica’sthirdlargestsourceofforeignexchange.
EmploymentintheSouthAfricancoalminingindustrytotalsmorethan12%oftheminingworkforceinSouthAfrica–thatismorethan65,000workers.IthasbeenestimatedthatthecoalindustryinSouthAfricapaysmorethanUS$1billioninwagestoitsworkforceeachyear.Workersinthecoalminingindustryarerequiredtobeskilledtoahigherlevelthantheotherminingsectorsmainlyduetotheneedforspecifictraininginthetechnical,mechanical,healthandsafety-andrelatedfieldsofoperationandengineering.Muchofthistrainingisprovidedthroughemploymentwithintheindustry.
Theimpactthattheseemploymentbenefitshaveisspreadwidelyacrossthecommunitiesatlarge.Thetypicalruralorlow-skilledAfricanfamilystructureisoftencomplexandmulti-faceted.Theimpactofoneemployees’salaryintheminingindustryhasbeenestimatedtofeedandclothetheequivalentoftenpeople,includingchildrenandtheelderly.
ColombiaIthasbeenestimatedthatin2009ColombiaearnedmorethanUS$5billioninexportrevenuefromcoal–roughlytwo-thirdsoftotalminingexportrevenues.ExportsofcoalhaveplayedanincreasinglysignificantroleinColombia’seconomy,asdemonstratedinfigure12.
MiningplaysakeyroleintheColombianeconomy,whichhasledtobillionsofdollarsinforeigninvestmentinrecentyears.
Thecoalminingsectorplaysanimportantroleincontributingtogovernmentrevenuesbothatnationalandregionallevels.RoyaltiesreceivedbyregionalgovernmentsinColombiaforcoalminingin2008wereaboutUS$597million,providingkeyrevenuetosupportessentialsocialservices
suchasschoolsandhospitalsandassistingthedevelopmentofkeyeconomicinfrastructure.
Responsible miningCoalisfoundin70countriesandactivelyminedinaround50countriesbycompaniesofvaryingsizes.Manycompaniesareverysmalloperations,insomecasesevenfamily-owned.Othercompaniesoperateinmanycountriesandsomealsooperateinothercommoditysectors.
Allcompanieshaveanobligationtoactresponsiblywhenminingfornaturalresources.Companiesmustconsidertheirimpactontheenvironment,thehealthandsafetyoftheirworkforcesandthecommunitieswithinwhichtheyoperate.Differentlocationshaveotherissuesthatneedtobeaddressedindifferentways.
Manycompaniesalsolearnfromtheexperienceofothersandtherearemanypositivestoriestotellaboutthecontributionthatcoalminingmakesacrosstheglobe.
WorldCoalAssociationmembersplaceahighpriorityonresponsibleminingandcommit,aspartoftheirmembership,toencourageimprovementsinminehealthandsafetyandpracticecorporatesocialresponsibility.
Figure 12. Colombian mining export revenues
Source: National Association of Employers of Columbia – Mining Chamber
Coal – Energy for Sustainable Development 20
Colombian mining complex Cerrejón has developed a comprehensive land rehabilitation programme that is now being held up by environmental authorities in Latin America as a model of best practice.
Theresultofover20years’observation,innovationandresearch,Cerrejón’saward-winningprogrammehashelpeditrehabilitateover2800hectaresoflandtodate.
Apriorityforallcoalminingcompaniesshouldbetoprotectthelocalenvironmentandcommunityaroundtheirmines.Thesoiliskey,aswithinitisheldthelocalbiodiversityofthelandalongsidenaturalresourcessuchaswaterandair.Throughcarefulplanningandlandmanagement,beforeandafterminingtakesplace,theindustrycanhelpensureasustainableandresponsiblefutureformining.
Restoring the natural balanceOverthelasttwodecades,ColombianminingandtransportationcomplexCerrejón-jointlyownedbyBHPBilliton,AngloAmericanandXstrata-hasdevelopedauniqueandaward-winninglandrehabilitationprogramme.Partofamuchwiderfocusonsustainabilityandenvironmentalmanagement,theprogrammehasalreadyrestoredmorethan2800hectaresofland-withoverhalfofthatcoveredbyforestscontainingmorethan140nativeplant,shrubandtreespecies.ItisrecognisedacrossColombiaandLatinAmericaasanexampleofbestpracticeinlandrehabilitation,winninganEnvironmentalResponsibilityawardfromtheSiembraColombiaFoundationandtheBritishEmbassyin2009.
HeadoftheProgramme,RamónGualdrón,explainshowthemethodologyhasdeveloped:“Wecreatedanactionplanbasedonsoundprinciplesandcriteria,andwecontinuallytestittoproveourassumptionsandapplythelessonswelearn”.
“Wemonitorprogressbycarefullytrackinghowthetreatedsoilevolves,andcomparingthiswithhowtheuntouchedlandsdevelopoverthesameperiod.”
A six-part journeyLandrehabilitationbeginsbeforetheminingstage,withtheremovalandpreservationofsoilbanks.Thisnaturalresourceisirreplaceableandessentialtotheprocess.Faunaisanothervitalcomponentofthelandbeingrehabilitated.It’simportantasatransformationagentinthevegetationcycle,helpingtocreatefavourablegrowingconditionswithoutexternalassistance.Protectingfauna,andtheCerrejónfaunacentre,arebothintegralpartsofthecycle,eventhoughtheyarenotconsideredapartofthelandrehabilitationprogramme.
Stage 1: Reshaping the mining depositsThefirststageintheprocessistoevenout,tillandreshapethedepositsofwasterock(tailings)fromoldpits,dumpareasandabandonedsupportareas,andaddalayerofloosesoilwhichhasbeenstoredinsoilbanksandwhichwillberestoredthroughanacceleratedrehabilitationprocess.
Stage 2: Merging the deposits and the new soilMildrainfallthenbindstheolddepositsandtheloosesoiltogether,andthisistilledagain-flatterlandbyplough,slopesbyoxen-beforetheonsetofthe
Case Study
CerrejónlandrehabilitationprogrammeColombia
21
heavierrainyperiodinthesecondhalfoftheyear.
Stage 3: Sowing the seedsBuffelgrassseedsarethenhand-sownandmixedwithfreshsoil-whichensuresanevendistributionandincorporatesmicroorganismsintheearthforwhenthefirstplantsgerminate.
Stage 4: The first plants arriveThefirstgenerationofgreenplantsstartgrowing,alongwithother,youngeronesfromtheseedsinthesoil,andtheserapidlyproducevegetationthatprotectsthesoilagainsterosion.Carbonisaddedtothesoiltohelpitretainrainwaterandnutrients.Thiscreatesbetterconditionsforthetreeswhichwilllatergrowthere.
Stage 5: Bringing nitrogen into the soilWhenthegrasseshaveusedupthesoil’snitrogenreserves,theybecomelesscompetitiveandallowtreesandfoliagefromtheleguminousplantspeciestogrow.Essentialtotherehabilitationprocess,theseproducemorenitrogenandconvertittoammonia-aprocessknownas‘fixing’-whichcreatesanenvironmentwhereotherspeciescangrow.
Stage 6: New growth and new species arriveGradually,thevegetationgrowsandstabilises,generatesnewresourcesandcreatesahostenvironmentformorecomplexanddemandingspeciesofplants.Asthishappens,animalsstarttoinhabittheland,andthehumaninterventionbecomeslessandless-untiltherehabilitationprocessiscomplete.
A model for sustainable miningLandrehabilitationistheprocessthatclosestheminingcycle,sominingcompaniesmusthaveexpertiseinthisarea.Cerrejón’smethodologyisnowacceptedasaneffectivewaytorehabilitatelandaftermining-andthesitehasbecomeastopforvisitingacademicswithinagriculture,biologyandenvironmentalsciences.
CerrejónEnvironmentalManager,GabrielBustos,explainswhyithasbeensuchasuccess:“TheCerrejónprogramme’sbiggestimpacthasbeentoreducethecostandimprovetheefficiencyoftherehabilitationprocess.Ithasdonethisbyoptimisingthewaysoilisusedintheprocess”.
Theteamalreadysharesbestpractices,andtheirpersonalexperiences,withotherlocalinitiativesthatCerrejónpromotesinruralcommunities.Theirambitionistohelpimprovelandrehabilitationpracticeswithinthewiderindustry,andhelpmakecoalminingamoresustainableprocessforthefuture.Nooneisbetterequippedtodothisthanateamwhocanfullyrelatetotheneedsofmining,notonlyconsciousofthesectorsneeds,butalsoofitslocal,regionalandintergenerationalobligations.
hectares of land restored. Over half of thatcovered by forests containing more than140 native plant, shrub and tree species.
2800
Coal – Energy for Sustainable Development 22
Coal mining companies in Santa Catarina State (Brazil) established the Santa Catarina Philanthropic Association (SATC) in 1959. The state had been experiencing difficulties in recruiting qualified labour to work in coal mines and established SATC to assist in raising awareness of coal mining and encouraging and training people to work in the industry.
In1963,SATCinauguratedthe‘MaleIndustrialSchool’andin1969,‘GeneralOswaldoPintodaVeigaTechnicalSchool’starteditsfirsttechnicalcourses.Sincethistime,SATChascontinuedtogrowandcreatefurtheropportunitiesforlearning.
TheSATCcampusislocatedinthe‘Universitário’suburb,inCriciúma,coveringanareaof550m2.Thecampusincludesclassrooms,laboratorieswithadvancedtechnicalequipment,alibrary,anecologicalhikingsite,andsportscomplexwithtwocoveredgymnasiums,twosoccerfieldsandarunningtrack.TheworkofSATCcontinuestofocusoneducationandtechnologytohelppeoplefromlessfortunatecommunitieshaveabetterlife.SATCoffers2000scholarshipsand700studentshavefreeeducation.
EducationSATCEducationalTechnicalSchoolhasmorethan5000students,coveringprimaryschooltohighschoollevelstudents,aswellasofferingprofessionalqualificationcoursesforhighschoolandundergraduatelevelstudents.Everyyear,around700studentsfromtheschoolgraduate.
SATCCollegeoffersgraduateandpost-graduatecoursesfocusedontechnology.Thereareabout1200studentsenrolledinSATC’shighereducationcoursesintheareasoftechnology,engineering,designandcommunication.
SATCextensioncourses(SATCTEC)coverexecutiveeducation,businessskills,distancelearningandthefurtherdevelopmentofsocialskills,servingthecommunityandassistingcompanieswiththequalificationsandskillbaseoftheirworkforce.SATCextensioncoursescoveranumberofareas,includingmechanics,electricsandcomputing.It
hasalanguagecentre,withEnglishasthemainlanguage,andaninternshipprogrammethathelpstoplacestudentsinwork.SATCalsorunsa‘SATCforEverybody’programme,whosegoalistohelpdevelopnewprofessionalsfromlessfortunatecommunities,creatingjobopportunitiesandofferingfreecoursestoobtainprofessionalqualifications.
SATCalsoprovidesdentalhealthcaretostudentsandpsychologyassistancetostudentsandfamilies,aswellasatraineeapprenticeprogramme.
TechnologyTheSATCTEChasthreecertifiedlaboratories(NBRISO9001:2000)whichoffertechnicalsupporttocompaniesandinstitutionsthroughworkonmetrology,coalanalysisandtestingandalsochemicalandenvironmentanalysis.In2009,theworkofSATCinthetechnicalfieldincluded:
• TheCleanCoalResearchCenter(CTCL)thatworksintheareasofmining,geologyandtheenvironment.Themainfocusofthecentreisthedevelopmentofproductiontechnologiesandthetechnologiestoimprovetheenvironmentalimpactoftheuseofcoal,whichisvitalforthedevelopmentofthecoalsectorinBrazil.
• Technology-basedPre-incubator(PRINTEC)whichwillprovideinstitutionalsupporttoolstobusinessproposalsandideaswhichhavemarketfeasibility.
Case Study
CommunityEngagementBrazil
23
ThroughPRINTEC,entrepreneursinvarioussectorswillbeabletoaccesstrainingandsupporttoputtheirbusinessplansintoaction.
Environment & Social WorkSATChasmadeimprovementsinitsenvironmentalmanagementsystem,whichin2008ledittobecomecertifiedwithIS014001,makingSATCthefirsteducationalinstitutioninSantaCatarinatobecertifiedandonlythefourthinBrazil.
Coal – Energy for Sustainable Development 24
The eMalahleni Water Reclamation Plant – situated in the Witbank coalfields of South Africa’s Mpumalanga province – has turned a major liability into a valuable asset that has created far-reaching benefits for the environment, the local community, and its feeder collieries.
Theaward-winningprojectisapublic-privatepartnershipthatwasjointlyundertakenbyAngloCoalSouthAfrica,BHPBillitonEnergyCoalSouthAfrica(BECSA)andtheeMalahleniLocalMunicipality,andhasbeendescribedasa“worldclassinitiativeandanexemplarymodelfordevelopment”.
Approximately130millionm3ofwaterisstoredinAngloCoal’sundergroundworkings,afigurethatisrisingbyover20megalitresperday.Awiderangeofoptionstomanagethiswaterhasbeenmaximisedandexhaustedoveraconsiderableperiod;thecompanythereforeundertookextensiveresearchintovarioustreatmentsolutions,withdesalinationbeingoneofthem.
Followingoveradecadeofresearchanddevelopment,AngloCoalenteredintoaR300millionjointinitiativewithBECSAandabulksupplyagreementwiththewaterstressedeMalahleniLocalMunicipality.Theresultwastwocompetingglobalresourcecompaniescomingtogethertosolveacommonproblemandprovideasustainablesolutionthatbenefitsthecommunitiesthatresidearoundtheirminingoperations.
Commissionedin2007,theplantdesalinatesrisingundergroundwaterfromAngloCoal’sLandau,GreensideandKleinkopjecollieries,aswellasfromBECSA’sdefunctSouthWitbankMine.Bydoingso,itpreventspollutedminewaterfromdecantingintotheenvironmentandthelocalriversystem,whilealsoalleviatingseriousoperationalandsafetychallenges.
Usingthelatestinwaterpurificationtechnology,itiscurrentlydesalinatingrecordproductionvolumesof23megalitresofwatertopotablequalityperday,18megalitresofwhichispumpeddirectlyinto
themunicipality’sreservoirs,meetingsome20%ofitsdailywaterrequirements.
Theplant’sall-timerecordof25.8megalitresinonedaywasachievedinSeptember2008,whileaweeklyrecordof169megalitresandanall-timebestoutputof632megalitresinonemonthwereaccomplishedinAugustofthatyear.
AdditionalwaterispipedtoGreenside,KleinkopjeandLandaucollieriesaswellasvariousnearbyAngloCoalservicedepartmentsfordomesticuseandforminingactivities,suchasdustsuppression.Theseoperationsarenowself-sufficientintermsoftheirwaterrequirements,whicheasestheserioussupplyproblemsofthelocalmunicipality.
TheplantwillalsosupplyeightmegalitresofpotablewaterperdaytoZondagsfontein,anAngloInyosiCoalgreenfieldproject,BECSA’sKlipspruitmineandthePholacoalwashingplant,ajointventurebetweenthetwomininghouses.
Critical need for waterTheeMalahleniLocalMunicipalityhaslonggrappledwithsupplyanddemandproblemstocaterforthewaterneedsofanareaexperiencingconsiderableindustrial,commercialandresidentialgrowth.TheplantisalsoaidingtheprovincialgovernmentinmeetingitsMillenniumDevelopmenttargettoensurethatnohouseholdgoeswithoutapotable,reliableandpredictablewatersupplybytheendof2008.
Case Study
EmalahleniWaterReclamationPlantSouth Africa
25
Apartfrombenefitingthelocalcommunitybysupplementingthelowdomesticwatersupply,ithascreatedanumberofjobopportunities.Duringtheconstructionphase,between650and700temporaryjobswerecreated,while40permanentpositionswerecreatedfortherunningoftheplant.Eighty-sixpercentoftheworkforcecomprisesHistoricallyDisadvantagedSouthAfricans,while91%havebeensourcedfromsurroundingcommunitiesinanareaofhighunemployment.
Enterprise developmentDuring2007,AngloZimele,AngloAmerican’senterprisedevelopmentandempowermentarm,createdablackempoweredenterprisethatutilisessomeoftheplant’swaterfortheretailbottlingindustry.KnownastheWhiteRiverBeverageCompany,thebusinessmarketsabrandknownas4LifetotheSouthAfricanbottledwatermarket,whichisgrowingbyapproximately15%perannumandenjoysaturnoverofinexcessofR850millionperyear.Sofar,theenterprisehascreatedjobsforsevenpeople.Onlyaverysmallpercentage(<0.01%)ofthewaterproducedattheplantiscurrentlybottled.
Zero waste facilityTheplantoperatesata99%waterrecoveryrateandtheultimategoalisforittobeazerowastefacilitythroughthe100%utilisationofitsby-product.The100tonnesofgypsumitproducesdailyisnotonlycostlytodisposeof,butisanenvironmentalandpost-closureliability.
AngloCoalhaslaunchedtwoR16millionresearchanddevelopmentprojectsthatmayoffsetthecostofthewatertreatmentfacilityandreapfurtherfinancialandenvironmentalbenefits.
Thefirststudy,whichisbeingco-fundedbytheNationalResearchFoundation’sTechnologyandHumanResourcesforIndustryProgramme,islookingintotheconversionofwastegypsumintosulphur,limestoneandmagnesite.
Thesecondisinvestigatingtheby-product’suseintheproductionofusableminingandbuilding
products.Thelocalbankingsectorhasbeenmandatedbygovernmenttoprovideassistanceineliminatingthecountry’smassivebackloginhousing,whichhasspurredthemintoseekingalternativebuildingmaterials.
Theboomintheconstructionindustryhascausedconventionalresourcessuchasbricksandcementtobeinshortsupply,andhasdrivenupthecostofhousing.Aspartofthisstudy,thecompanyhasbuiltathree-bedroomhouseconstructedalmostentirelyoutofgypsum-basedbuildingproducts.
Itiscurrentlyundergoingarangeofteststoproveitsqualityandsocialacceptance,andshouldtheprojectbesuccessfulitisenvisagedthatablackempoweredentitywillbecreatedtomanufactureandmarketgypsumbuildingproductsonamassscale.
Future developmentsPhasetwooftheplantmeansthefacilitycandesalinate50megalitres(withamaximumcapacityof60megalitres)ofwaterperday.
Theprojecthasbeendesignedtotakeintoaccounttheremaining20-25-yearlifeofcontributingmines,andtocaterforpostclosureliabilitieswhichwillrequirethedesalinationofminewaterinexcessof30megalitresperday.Theplantwillcontinuetorunpostmineclosure.
Coal – Energy for Sustainable Development 26
By taking responsibility for the health of its workforce, multinational mining company Anglo American showed that providing healthcare isn’t just the right thing to do – it’s also a good investment.
Between1990and1998,theprevalenceofHIVinSouthAfricarocketedfromlessthan1%tomorethan22%.InAugust2002,AngloAmericanannouncedthatitwasmakingantiretroviraltherapy(ART)availabletoitsentiresouthernAfrica-basedworkforce.Eventhearchitectofthescheme,ChiefMedicalOfficerDrBrianBrink,describeditas“aleapoffaith”.
However,byJuly2010,itwasclearthatthebenefitsoftheARTprogrammefaroutweighedthecosts.ProvidingARTtooneworkerforonemonthcostAnglo$126butresultedinsavingsof$219.
Testing and treatmentAngloAmerican’sHIV/AIDSprogrammeisbasedonanambitioustargetofthreezeroes:zeronewinfections;zeroemployeesfallingsickordyingfromAIDS;andzerobabiesbornHIVpositiveinemployees’families.UNAIDS,theJointUnitedNationsProgrammeonHIV/AIDS,hasnowadoptedthesesametargets.
AcornerstoneoftheprogrammeisvoluntarycounsellingandHIVtesting(VCT).In2003,lessthan10%ofsouthernAfrica-basedAngloAmericanstafftookadvantageofVCT,butby2010,94%ofemployeeswerecheckingtheirstatuseveryyear.ThismeansAnglocancalculatetheprevalenceofHIVandtheincidenceofnewinfectionsmoreaccuratelythaneverbefore.
AssoonasanemployeetestsHIVpositivetheycanenrolintheHIVWellnessProgramme,whichprovidesongoingcounsellingandimmune-systemmonitoring.Whenthemonitoringindicatesthetimeisright,theycanstartreceivingART.
In2010,about12,000employeeswereHIVpositiveandabout4000ofthosewerereceivingART.
Theprogrammeisalsoavailabletoworkers’dependents–acomplexexercise,giventhatmanyarescatteredaroundsouthernAfrica,ofteninremotevillageswithlittleaccesstohealthcare.About400dependentsarecurrentlyenrolledintheHIVWellnessProgramme,and75%ofthemarereceivingART–thoughestimatesindicatethattherearestillmanymoreinneed.
PeopledodropoutofART,butAngloisworkingtoimprovelong-termadherencetotreatment.Fewerthan20%ofthoseenrolleddroppedoutin2010,comparedtomorethan40%in2004.
TheprevalenceofHIVinsouthernAfricaislinkedtoarisingincidenceoftuberculosis(TB).PeopleenrolledintheHIVWellnessProgrammearealsoofferedTBpreventiontherapy,whichhasreducedAIDSmortalityby50%,andAngloAmericanalsoadministersaTBcontrolprogrammebasedonsimilarprinciplestotheHIV/AIDSprogramme.
Healthier communitiesForDrBrink,theprogrammehasdemonstratedthatHIVcanbecontainedandAIDScanbemanaged.Yetheisstillconcernedwiththebiggerpicture.
“ItisincreasinglyevidentthatastandaloneresponsetoHIV/AIDSwillneversucceedunlessitissupportedbyabroad-basedstrengtheningofthehealthsystem”.
Case Study
AngloAmericanHIV/AIDSprogrammeSouth Africa
27
In2003thecompanylaunchedtheAngloAmericanCommunityHIV/AIDSPartnershipProgramme,whichsupportsyouthprogrammes,clinicsandotherinitiatives,andengagesinpublic/privatepartnerships.TheseincludethebuildingofacommunityhealthcentreatLillydaleintheBushbuckridgemunicipality,Mpumalangaprovince,andaclinicinKathutownship,NorthernCapeprovince–bothofwhichprovideaccesstolife-savingART.
Angloisalsosponsoringthewritingofabusinessplantorevitaliseprimaryhealthcareinfoursub-districtsoftheEasternCape,anareathatmanyofitsworkersandtheirdependentscallhome.Theplanwillsetcleartargetsforimprovingthebasicindicatorsofhealth,includingHIV/AIDS,TBandmaternalandchildhealth.
Thebroad-basedstrengtheningDrBrinkenvisageswillrequirebetterhealthinformationsystems,usingmoderntechnologytomakedataaccessibleeveninremoteareas.AngloAmerican’sThermalCoalbusinesshasdevelopedsuchasystem,theHealthSource,whichiscurrentlybeingpilotedintwoimpoverishedareas.TheEasternCapeDepartmentofHealthhasalsoshownaninterest.
Setting an example to industryAngloAmerican’snexttargetistoencourageothercompaniestofollowinitsfootsteps.DrBrinkwantstheprivatesectortobecomeoneofthetoptendonorstotheGlobalFundtoFightAIDS,TBandMalaria.
AttheG20BusinessSummitinSeoul,ChiefExecutiveofAngloAmericanCynthiaCarrollpledged£1millionayeartotheFundforthenextthreeyears.
Thecompanyhasdemonstratedaclearbusinesscaseforthissortofinvestment.“Allthatisrequired,”saysDrBrink,“istheleadershipandthewilltogetthejobdone.”
Effects of Anti-Retroviral Therapy (ART) at anindividual level – the Anglo American experience
Cost savings (US$ per month)
Cost of ART Decline inabsenteeism
Note: The overall impact of HIV/AIDSis equivalent to 3.4% of payroll
Reduction ofhealthcareutilisation
Decrease instaff turnover
and benefitpayments –126 96
87
3693
33%
1%
Percentage of the world’s populationthat is currently infected with thetuberculosis bacillus – it can liedormant for years, with people onlybecoming sick when their immunesystem is weakened
Percentage of tuberculosisinfectionsamong AngloAmerican’s South Africa-basedemployees in 2010
Effects of Anti-Retroviral Therapy (ART) at anindividual level – the Anglo American experience
Cost savings (US$ per month)
Cost of ART Decline inabsenteeism
Note: The overall impact of HIV/AIDSis equivalent to 3.4% of payroll
Reduction ofhealthcareutilisation
Decrease instaff turnover
and benefitpayments –126 96
87
3693
33%
1%
Percentage of the world’s populationthat is currently infected with thetuberculosis bacillus – it can liedormant for years, with people onlybecoming sick when their immunesystem is weakened
Percentage of tuberculosisinfectionsamong AngloAmerican’s South Africa-basedemployees in 2010
Coal – Energy for Sustainable Development 28
Steel productionCoalisanimportantcomponentofglobalsteelproduction.AccordingtorecentstatisticsissuedbytheWorldSteelAssociation,therewasanincreaseinglobalsteelproductionin2010upto1413.5milliontonnesfrom1230.9milliontonnesin2009.Cokingcoalisanessentialelementinblastfurnacesteelproduction,makingup70%oftotalsteelproduction(theremainderisproducedfromelectricarcfurnacesusingscrapsteel).Worldcrudesteelproductionwas1.4billiontonnesin2010,involving721milliontonnesofcokingcoalinitsproduction.
Steelisanessentialmaterialformodernlife.Manufacturingsteeldeliversthegoodsandservicesthatoursocietiesneed–healthcare,telecommunications,improvedagriculturalpractices,bettertransportnetworks,cleanwaterandaccesstoreliableandaffordableenergy.Itisfundamentaltoamoresustainableworld,helpingtobuildlighter,moreefficientvehicles,newhighlyefficientpowerstationsandintheconstructionofsmartelectricalgrids.Steelisacriticalcomponentintheconstructionoftransportinfrastructureandhighenergyefficiencyresidentialhousingandcommercialbuildings.
Figure 13. Coal’s role in sustainable energy
Source: www.vestas.com. Key: t = metric tonnes
150tof coal required for materials for onshore turbines
250tof coal required for materials for offshore turbines
Coal Used in a 3 MW Wind TurbineCoal’s Role in Sustainable Energy
Source: www.vestas.com/en/about-vestas/sustainability/wind-turbines-and-the-environment/life-cycle-assessment-(lca)
Key: t = metric tonnes
Raw materials& resources
ManufacturingSuppliers
Transport
Transport& erection Raw materials
& resources
Suppliers Manufacuring
Transport
Transport& erection
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Steelalsohasasignificantroleindeliveringrenewableenergy;eachwindturbinerequires260tonnesofsteelmadefrom170tonnesofcokingcoaland300tonnesofironore.Chinaisbyfartheworld’slargeststeelproducerfollowedbyJapan,theUnitedStates,IndiaandRussia.TherehasbeenasignificantshifttowardsChinainglobalsteelmarketsoverthepast10years.China’sshareofglobalproductionincreasedfromjustover15%in2000tomorethan44%in2010,duringaperiodwhereglobalsteelproductiongrewbytwo-thirds.LikewiseChina’sshareofsteeluse(measuredbyfinishedsteelproducts)increasedfrommorethan16%tojustunder45%ofglobaluse.
However,otherdevelopingeconomiesinLatinAmerica,Asia,AfricaandtheIndiansub-continent,wheresteelwillbevitalinimprovingeconomicandsocialconditions,arealsoexpectedtoseesignificantincreasesinsteelproduction.Intheseregions,accordingtotheWorldSteelAssociation,morethan60%ofsteelconsumptionwillbeusedtocreatenewinfrastructure.
Withworldsteelproductionexpectedtocontinuetogrow,theoutlookforthecokingcoalsectorwillalsobestrong.Withaverageannualgrowthofmorethan5%perannumduring2000–2010andwiththecontinuingincreaseddemandfromChina,indicationsarethatthemarkedgrowthinsteelproductionislikelytocontinuewellintothefuture.
Cement productionCement,likesteel,playsamajorroleintheconstructionindustry.Cementisusedtocombineaggregatestoformconcrete.Fewconstructionprojectstakeplacewithoutusingcement.Togethercementandsteelplayasignificantroleinbuildingemergingeconomiesandsupportingsocio-economicdevelopment.
Concretehasanessentialroleinmodernsociety.Itisusedtobuildschools,hospitals,homes,andkeypublicinfrastructuresuchasbridges,tunnels,dams,seweragesystems,pavements,runways,roadsandmore.
Figure 14 . Global steel production
Source: World Steel Association, World Steel in Figures 2011
Coal – Energy for Sustainable Development 30
Coalcombustionproducts,suchasflyash,alsoplayanimportantroleincementmanufactureandmoregenerallyintheconstructionindustry.Coalcombustionproducts(CCPs)canplayanimportantroleinconcreteproduction.CCPsaretheby-productsgeneratedfromburningcoalincoal-firedpowerplants.
Coal and waterInadditiontoenergysecurity,watersecurityisexpectedtobeamajorchallengeinthecomingdecades.AccordingtotheOECD2.8billionpeople,oralmosthalfoftheworld’spopulation,liveinareasofhighwaterstress.Thisnumberisexpectedtoincreaseby39%withinthenexttwodecades.By2030,theglobaldemandforwatercouldoutstripsupplyby40%ifcurrentconsumptiontrendsarenotchanged.
Water in energy generationEnergygenerationisusuallyassociatedwithhighwaterconsumption.Coolingsystemsrepresentthehighestproportionofwaterconsumptioninenergygeneration.Thismakeswateranessentialelementoftheenergygenerationprocess.Infact,thehighertherelianceonwaterforcoolingpurposes,thehighertheriskthatpowergenerationoutputmightbeaffectedduringhotsummersordroughts.ReportsbytheIEAandtheWorldPolicyInstitute(WPI)showthathydro,geothermal,nuclearandconcentratedsolarpowerarethemostwaterintenseamongtheexistingelectricitygenerationtechnologies.Generatingelectricityincoal-firedpowerplantsalsorequiresasignificantamountofwaterforcoolingpurposes.
Usingintegratedgasificationcombinedcycle(IGCC)technologyatcoal-firedpowerplantscanreducewaterconsumptionbyhalf.IGCCplantsconsumearoundthesameamountofwaterasnaturalgasplants;thatisfourtimeslessthansolarthermalandseventimeslessthangeothermalenergy.
Concreteisinfactthemostusedman-madematerialintheworldandisintegraltotheconstructionoflonger-lastingenergy-efficientbuildings.AccordingtotheWorldBusinessCouncilforSustainableDevelopment,threetonnesofconcreteareusedannuallyforeveryindividualontheplanet.
Coalisusedasanenergysourceincementproduction.Largeamountsofenergyarerequiredtoproducecement.Kilnsusuallyburncoalintheformofpowderandconsumearound450gofcoalforabout900gofcementproduced.
Figure 15. World cement production (in thousand metric tons)
Country 2009 2010UnitedStates 64,900 63,500Brazil 51,700 59,000China 1,629,000 1,800,000Egypt 46,500 48,000Germany 30,400 31,000India 205,000 220,000Indonesia 40,000 42,000Iran 50,000 55,000Italy 36,300 35,000Japan 54,800 56,000Korea,Republicof 50,100 46,000Mexico 35,200 34,000Pakistan 32,000 30,000Russia 44,300 49,000SaudiArabia 40,000 45,000Spain 50,000 50,000Thailand 31,200 31,000Turkey 54,000 60,000Vietnam 47,900 50,000Othercountries 466,000 520,000(rounded)
Source: US Geological Survey
Steel delivers the goods and services that our societies need – healthcare, telecommunications, improved agricultural practices, better transport networks, clean water and access to reliable and affordable energy. It is fundamental to a more sustainable world.
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Water in miningMiningcoalisresponsibleforaroundatenthofwaterconsumptionacrossthechainofenergyproductionandelectricitygeneration.
Waterreclamationandcarefulmanagementtechniquesarecriticaltomanagingwaterresources.Thecoalindustryhasalreadymadesignificantcontributionstothiseffort.Self-sufficiencyinwaterconsumptionplaysakeyroleinreducingtheimpactofcoalminingonlocalcommunitiesandreclamationcanalsoallowforincreasedwatersupplyinareaswithlimitedresources.
Mineoperationsworktoimprovetheirwatermanagement,aimingtoreducedemandthroughefficiency,technologyandtheuseoflowerqualityandrecycledwater.Waterpollutioniscontrolledbycarefullyseparatingthewaterrunofffromundisturbedareas,fromwaterwhichcontainssedimentsorsaltfrommineworkings.Cleanrunoffcanbedischargedintosurroundingwatercourses,whileotherwateristreatedandcanbereusedinactivitiessuchasdustsuppressionandincoalpreparationplants.
Figure 16. History of world steel production
Source: World Steel Association, World Steel in Figures 2011
Coal – Energy for Sustainable Development 32
Deliveringsustainabledevelopmentisasignificantglobalchallenge.Thereisamultiplicityofissues,whichmustbeaddressedasintegratedchallenges,notasisolatedproblems.Ensuringaccesstoelectricityandsupportingeconomicgrowthisessentialtoglobaleffortstoeradicatepovertyandsupporthumandevelopment.AddressingglobalCO2emissionsisessentialtomitigatingtheimpactsofclimatechange.Managingourenvironmentisessentialtoconservebiodiversity.
Thesechallengesrequirecoordinatedandintegratedinternationalaction.
Energy and the Millennium Development GoalsAttheMillenniumDevelopmentSummitin2000worldleadersadoptedeightgoalstobeachievedby2015.Thesewereaimedateradicatingextremepoverty,improvingaccesstoeducation,improvinghealthoutcomes,suchasreducingchildmortality,andfightingepidemicssuchasHIV/AIDS.
Asoneofthefundamentalsofmodernsociety,accesstoenergyisakeycomponenttoachievingthesegoals(seetableonpages34-35).Withoutaccesstomodernenergy,hospitalsandschoolscannotfunctioneffectively.Womenandchildrensufferdisproportionatelytheeffectsofburningwoodanddunginthehome.
YetthereisnoenergyaccesstargetintheMillenniumDevelopmentGoals.
Ifthereistobeeffectiveglobalactiontoaddresspoverty,thenaddressingenergypovertymustbeamajorpriority.Anambitiousenergyaccessgoalwouldnotjustalleviateextremepovertybutwouldalsosupportmoreambitiousdevelopmentobjectives.Thiswouldenableglobaleconomicandsocialdevelopmenttobeaccelerated.Arecentstudyindicatedthata“moderateaccess”scenario(seeFigure3ofthisreport)thatwouldsupporttheneedsofbusinessandindustryrequiresanelectricitycapacityofaround200-400MWpermillionpopulation.Electricityscenariosatthislevel,whileambitious,woulddelivergenuineeconomicandsocialdevelopment.
Our recommendationAn ambitious target for global energy access must be adopted. This target needs to be one that will
support the eradication of poverty, the growth of businesses and industries and true economic and social development. National governments and global institutions should work towards an energy target of at least 400MW of installed electrical generation capacity per million of population.
Part 4Timeforaction
Action for
Energy
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Advanced coal technologiesAllenergysourcesandallenergytechnologieswillbeneededtomeettheglobalchallengeofprovidingenergyaccessforall.Renewableenergies,gas,nuclear,coalandcleanercoaltechnologiesallhavearoletoplayinmeetingglobalenergyneeds.Therearearangeofmoderncoaltechnologiesthatwillsupportthedeploymentofenergywhilealsosupportingclimateandgreenhousegasmitigationobjectives.
Therearetwomajortechnologiesthatmustbebackedbytheinternationalcommunityfordeploymenttosupportinternationalenergyandclimateobjectives:
• Advancedpowergeneration–supercriticalandultra-supercriticaltechnologies–eachpercentagepointimprovementincoalpowerefficiencyreducesgreenhousegasemissionsby2-3percentagepoints.
• Carboncaptureandstorage–aglobalclimatemitigationenergyportfoliowithcoalandCCSisestimatedbytheIEAtobe70%lessexpensivethanaportfoliowithoutcoalandCCS.Thispotentiallycouldreleasemorefundingforinvestmentforpovertyeradication.
Thereshouldalsobemoreinvestmentinothertechnologiesthatsupporttheuseofcoalresources:
• Undergroundcoalgasification–UCGisemergingasatechnologytoutiliseotherwiseunrecoverablecoalresourceswithfewergreenhousegasemissions,potentiallyunlockingacleanersourceofenergyforgenerationstocome.
• Coaltoliquidfuelsandsyntheticnaturalgas–CTLandSNGprovidereliablesourcesofliquidfuelswhendemandishighorpricesarehigh.Theyalsoprovideincreasedopportunitiestodelivercleancookingfuelsinthedevelopingworld.
Thesetechnologieswillbeapplicableindifferentcontextsandsomemaysuitonelocationmorethananother.Howevertheywillallbepartofafutureglobalenergymixthatsupportsbothenergyaccessandclimateobjectives.
Our recommendationNational governments and international institutions must support the rapid deployment of all advanced
coal technologies, particularly improved efficiencies at power stations and CCS.
Financing cleaner coalInternationalsupportisneededtofinancecleanercoalenergysolutionsbecauseallsourcesofenergywillbeneededtosupporteconomicandsocialdevelopmentandtheeradicationofenergypovertyinthedevelopingworld.Nationalgovernmentsareentitledtoassesswhichsourcesofenergyaremostsuitabletotheirownneedsandtheirownresourceavailability.Decisionsonwhichenergysourcesshouldbeutilisedtofurthernationaldevelopmentplansshouldbemadebynationalgovernmentsandnotbyinternationalinstitutions.Itistheroleofinternationalinstitutionstosupportnationalgovernmentsintheirdecision-makingandimplementationprocesses.
Our recommendationInternational financial institutions must adopt policies that will allow national governments
to determine which energy solutions are appropriate to their needs and support those decisions with the appropriate financial backing.
Action for
Energy
Action for
Energy
Coal – Energy for Sustainable Development 34
Millennium Development Goal Importance of Energy Coal
Eradicateextremepovertyandhunger Energyinputssuchaselectricityandfuelsareessentialtogeneratejobs,industrialactivities,transportation,commerce,micro-enterprisesandagricultureoutputs.Moststaplefoodsmustbeprocessed,conservedandcooked,requiringheatfromvariousfuels.
• Over40%oftheworld’selectricitycomesfromcoal,providingsecureenergy.
• TherapidelectrificationinSouthAfrica,IndiaandChinahasbeenheavilydependentonaffordablecoal.
• Coaldirectlyprovidessevenmillionjobsworldwideandcoalproductionisthekeytoeconomicactivityinmanycommunities.
Achieveuniversalprimaryeducation Toattractteacherstoruralareaselectricityisneededforhomesandschools.Afterduskstudyrequiresillumination.Manychildren,especiallygirls,donotattendprimaryschoolsinordertocarrywoodandwatertomeetfamilysubsistenceneeds.
• Inadditiontoprovidingreliableaffordableelectricity,manycoalcompaniesprovideeducationandfacilitieswithintheircommunities.
• TheBrazilianCoalAssociationhasworkedwithcompaniesintheSantaCaterinaareatodevelopauniqueeducationalandskillstrainingcentre,meetingtheneedsofchildrenandadultsalike.
Promotegenderequalityandempowerwomen
Lackofaccesstomodernfuelsandelectricitycontributestogenderinequality.Womenareresponsibleformosthouseholdcookingandwaterboilingactivities.Thistakestimeawayfromotherproductiveactivitiesaswellasfromeducationalandsocialparticipation.Accesstomodernfuelseaseswomen’sdomesticburdenandallowsthemtopursueeducational,economicandotheropportunities.
• Coalprovidesreliableandaffordableelectricity,withmorethan1billionpeoplegainingaccessviacoalinthepasttwodecades.
• Convertingcoaltoultracleanliquidfuelsfordomesticusecanmakeanenormousdifferencetowomen’slives,aswellastochildrenandtheelderlywhoaredisproportionatelyaffectedbyindoorairpollution.
• Liquidfuelsfromcoalcansignificantlyreducepollutantsthatimpactlocalairqualitysuchasnitrogenoxidesandparticulates.Liquidfuelsfromcoalaresulphurfree.
• Chinahas,withfinancingfromtheInternationalFinanceCorporation(theprivatesectorarmoftheWorldBank),setupthefirstCoal-to-Liquidsplanttoprovideultracleanfuelsfordomesticuse.
• IfCTLfuelsareproducedusingcarboncaptureandstorage,CO2emissionscanbereducedbyasmuchas20%overthefullfuelcyclecomparedtoconventionaloilproducts.
Reducechildmortality Diseasescausedbyunboiledwater,andrespiratoryillnesscausedbytheeffectsofindoorairpollutionfromtraditionalfuelsandstoves,directlycontributetoinfantandchilddiseaseandmortality.
Improvematernalhealth Womenaredisproportionatelyaffectedbyindoorairpollutionandalsobywaterandfood-borneillnesses.Lackofelectricityinhealthclinics,illuminationfornighttimedeliveries,andthedailydrudgeryandphysicalburdenoffuelcollectionandtransportallcontributetopoormaternalhealthconditions,especiallyinruralareas.
AnnexCoalandtheMillenniumDevelopmentGoals
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Millennium Development Goal Importance of Energy Coal
Ensureenvironmentalsustainability Energyproduction,distributionandconsumptionhavemanyadverseeffectsonthelocal,regionalandglobalenvironment,includingindoor,local,andregionalairpollution,localparticulates,landdegradation,acidificationoflandandwater,andclimatechange.Cleanerenergysystemsareneededtoaddressalloftheseeffectsandtocontributetoenvironmentalsustainability.
• Coalisfacinguptoitsenvironmentalchallengesandpromotestheuseofcleancoaltechnologieswhichreducelocal,regionalandglobalimpacts.
• Gasificationofcoalcanreduceemissionsofparticulates,sulphuroxidesandnitrogenoxidesbyupto99%.
• CCSmustbeincludedinanyportfolioofmitigationoptionswheresignificantreductionsinCO2emissionsaretobeachieved.
• CCSisrecognisedasreducingthecostsofoverallmitigationby30%ormoreandglobalstoragecapacityisimmense.
Developaglobalpartnershipfordevelopment
TheWorldSummitforSustainableDevelopmentcalledforpartnershipsbetweenpublicentities,developmentagencies,civilsocietyandtheprivatesectortosupportsustainabledevelopment,includingthedeliveryofaffordable,reliable,andenvironmentallysustainableenergyservices.
• FutureGenisaninternationalpublic-privatepartnershiptobuildacommercialscale,coal-fuelled,near-zeroemissionspowerplantusingcoalgasificationandcarboncaptureandstorage.
• CoalcompaniesparticipateintheCarbonDisclosureProject-theworld’slargestinstitutionalinvestorcollaborationonthebusinessimplicationsofclimatechange.
• MembersofthecoalindustryalsoparticipateintheGlobalReportingInitiative-aninternationalcollaborativenetworkforreportingoneconomic,environmentalandsocialperformance.
CombatHIV/AIDS,malariaandotherdiseases
Electricityforcommunicationsuchasradioandtelevisioncanspreadimportantpublichealthinformationtocombatdeadlydiseases.Healthcarefacilities,doctorsandnurses,allrequireelectricityandtheservicesthatitprovides(illumination,refrigeration,sterilisationetc)todeliveryeffectivehealthservices.
• Affordableandreliableelectricityfromcoalcanplayadirectandmajorroleincombatingdeadlydiseases–bypoweringcommunication,equipmentandservices.
• Coalcompaniesalsoplayadirectroleinhealthcareprovision,oftenaheadofstateservices.
• InSouthAfrica,coalcompanieshavebeenoperatingmajorHIV/AIDStreatmentprogrammes,providingfreeantiretroviraldrugs.
• InColombia,coalcompaniesworkwithlocalorganisationstoprovide‘healthbrigades’toindigenouspeoples.Recentactivitiesincludewidespreadvaccinationagainstyellowfever.
Coal – Energy for Sustainable Development 36
Base load electricity–istheminimumlevelofsupplyneededonanelectricitygridnetwork.Baseloadpowersourcesarethoseplantswhichcangeneratedependablepowertoconsistentlymeetdemand.Baseloadgenerationwilloperate24hoursaday,7daysaweek.
Carbon capture and storage (CCS)–agroupoftechnologiesusedtoreduceCO2emissionsfromlargeCO2sources(suchasfossilfuelorbiomasspowergeneration)andindustrialprocesses(suchascement,ironandsteelandfertilisermanufacturing).Followingcapture,CO2istransportedandstoredinspecificallyselectedandcharacterisedgeologicalformationsover1000mbelowtheground.(IEA)
Clean Development Mechanism (CDM)–allowsemission-reductionprojectsindevelopingcountriestoearncertifiedemissionreduction(CER)credits,eachequivalenttoonetonneofCO2.TheseCERscanbetradedandsold,andusedbyindustrialisedcountriestomeetapartoftheiremissionreductiontargetsundertheKyotoProtocol.Themechanismstimulatessustainabledevelopmentandemissionreductions,whilegivingindustrialisedcountriessomeflexibilityinhowtheymeettheiremissionreductionlimitationtargets.(UnitedNationsFrameworkConventiononClimateChange)
Coal-to-liquids –referstothetransformationofcoalintoliquidhydrocarbons.Itcanbeachievedthrougheithercoalgasificationintosyngas(amixtureofhydrogenandcarbonmonoxide),combinedwithFischer-Tropschormethanol-to-gasolinesynthesistoproduceliquidfuels,orthroughthelessdevelopeddirect-coalliquefactiontechnologiesinwhichcoalisdirectlyreactedwithhydrogen.(IEA)
Energy poverty–meansalackofaccesstomodernenergyservices.Theseservicesaredefinedashouseholdaccesstoelectricityandcleancookingfacilitiese.g.fuelsandstovesthatdonotcauseairpollutioninhouses.(IEA)
Enhanced oil recovery (EOR) –alsoknownastertiaryoilrecovery,followsprimaryrecovery(oilproducedbythenaturalpressureinthereservoir)andsecondaryrecovery(usingwaterinjection).VariousEORtechnologiesexist,suchassteaminjection,hydrocarboninjection,undergroundcombustionandCO2flooding.(IEA)
Installed capacity–isthemaximumamountofelectricitythatapowerplantcangenerateatanygivenpointintime.Acrossaneconomytheinstalledcapacityincludesallpointsofpowergeneration.
Millennium Development Goals (MDGs)–globalcommitmentstoeradicateextremepoverty.Theywereagreedbyalltheworld’scountriesandalltheworld’sleadingdevelopmentinstitutionsinSeptember2000.
Off-grid–referstoelectricitygenerationthatisnotconnectedtoaneconomy-wide,nationalormajortransmissionsystem.Definitionsofoff-gridusuallyincludebothstand-alonegeneratingsystemsandmini-gridsystems.Off-gridelectricitygenerationusuallyoccursinremoteorruralareasandincountrieswherethereislimitedaccesstoelectricity.
On-grid –referstoelectricitygenerationthatisconnectedtoaneconomy-wide,nationalormajortransmissionsystem.
Original-oil in place–isthetotalhydrocarboncontentofanoilreservoirbeforethecommencementofproduction.
Glossary
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International Energy Agencywww.iea.org
IEA Clean Coal Centrewww.iea-coal.org.uk
International Year of Sustainable Energy for Allwww.sustainableenergyforall.org
United Nations Conference on Sustainable Development 2012 (Rio+20)www.uncsd2012.org
UN-Energywww.un-energy.org
United Nations Framework Convention on Climate Changewww.unfccc.int
United Nations Global Compactwww.unglobalcompact.org
United States Energy Information Administrationwww.eia.gov
World Bankwww.worldbank.org
World Coal Associationwww.worldcoal.org
World Energy Councilwww.worldenergy.org
World Energy Outlookwww.iea.org/weo/
Further reading
Coal – Energy for Sustainable Development 38
Membershipisopentocoalenterprisesandstakeholdersfromanywhereintheworld.TheWCAhasmorethan40membersspreadacrosstheglobe.Ourmembershipincludesmanyoftheworld’slargestcoalproducersandincludesminingequipmentmanufacturers,nationalcoalindustryassociationsandcoalresearchbodies.MembercompaniesarerepresentedatChiefExecutivelevel.TheWCAistheonlyinternationalbodyworkingonbehalfofthecoalindustryworldwide.
ObjectivesThecoalindustry,includingbothinternationallytradedanddomesticcoal,needstopresentaunitedfronttothechallengesitfacesthisdecadeandbeyond.TheorthodoxythatviewscoalonlyasaCO2emitter–withoutregardtoitsroleineconomicandsocialdevelopment,essentialtoelectricitygenerationandsteelmanufacture–maybeataturningpoint.However,theindustryneedstocooperatetoensurethatthisturningpointoccurs.Forthatreason,theWCAhasadoptedaforwardlookingstrategythataimstoposition:
• coalasastrategicresourcethatiswidelyrecognisedasessentialforamodernqualityoflife,akeycontributortosustainabledevelopment,andanessentialelementinenhancedenergysecurity;and
• thecoalindustryasaprogressiveindustrythatisrecognisedascommittedtotechnologicalinnovationandimprovedenvironmentaloutcomeswithinthecontextofabalancedandresponsibleenergymix.
Thestrategycanonlybeachievedwiththecommitmentofleadingcoalproducersandstakeholders.
World Coal Association
MissionWCAanditsmembercompaniesengageconstructivelyandopenlywithgovernments,thescientificcommunity,multilateralorganisations,non-governmentalorganisations,media,coalproducersandusers,andothersonglobalissues,suchasCO2emissionsreductionandsustainabledevelopment,andonlocalissuesincludingenvironmentalandsocio-economicbenefitsandtheeffectsfromcoalminingandcoaluse.
TheWorldCoalAssociationisanon-profit,non-governmentalassociation.
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Commentsorsuggestionsarewelcomeandshouldbesenttoinfo@worldcoal.org
Coal – Energy for Sustainable Development
Thispublicationmaybereproducedinpartforeducationalornon-profitpurposeswithoutspecialpermissionfromthecopyrightholder,providedacknowledgementofthesourceismade.TheWorldCoalAssociationwouldappreciatereceivingacopyofanypublicationthatusesthispublicationasasource.NouseofthispublicationmaybemadeforresaleorforanyothercommercialpurposewhatsoeverwithoutpriorpermissioninwritingfromtheWorldCoalAssociation.
FirstpublishedintheUKinApril2012.
Copyright©2012WorldCoalAssociation